Calgary – Trans Mountain Corporation (TMC) posted to its website the company’s financial statements and associated management report for the three months ending March 31, 2019. The company’s financial results were also included in Canada Development Investment Corporation’s quarterly report as part of its quarterly consolidated financial statements, released on May 23, 2019.
In the first three months of 2019 TMC recorded net income of $12.4 million and Adjusted EBITDA of $48.5 million.
“Trans Mountain’s first quarter saw strong performances both operationally and financially, and was a positive and successful beginning to 2019, our first full year as a stand-alone company,” said Ian Anderson, President and CEO of Trans Mountain Corporation. “In the first part of the year, the conclusion of the National Energy Board reconsideration hearing marked an important step forward and our team continued to advance work towards the re-start of construction on the Expansion Project, should it receive approval.”
On February 22, 2019, the National Energy Board (NEB) released its report and recommendations on the Reconsideration Hearing, one of two reports that will be considered by the Governor in Council when making its decision on the Project. Trans Mountain continued to cooperate with the Government of Canada in its efforts to follow the guidance of the Federal Court of Appeal (FCA) and meet its duty to consult with Indigenous Communities about the Project.
The company continued to work on areas of the Expansion Project not impacted by the FCA decision including engineering and planning and hosted business readiness workshops in pipeline communities to provide local businesses with information about opportunities to work on the Project.
On March 5, 2019, the NEB also determined Trans Mountain’s new three-year toll settlement, negotiated by Trans Mountain with its customers and the broader industry, is in the public interest. The settlement sets out the method Trans Mountain will use to calculate its annual revenue requirement, tolls and related issues.
See the full financial statements and management report documents here.
See Canada Development Investment Corporation’s Quarterly Report here.
We make use of certain financial measures that do not have a standardized meaning under U.S. GAAP because we believe they improve management’s ability to evaluate our operating performance and compare results between periods. These are known as non-GAAP measures and may not be similar to measures provided by other entities. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization and equity AFUDC) is a non-GAAP measure we use to evaluate our operating performance absent the impact of financing decisions, non- cash depreciation and amortization, and non-cash equity AFUDC.
AFUDC (Allowance for Funds Used During Construction) is an amount recognized by rate-regulated entities to reflect a return on the equity and debt components of capital invested in construction work in progress.
This Report reflects financial results for the three months ended March 31, 2019. As TMC was incorporated on May 28, 2018 and acquired the Trans Mountain Entities on August 31, 2018, comparable prior year figures are not available.