Trans Mountain Corporation (TMC) has reported its financial results for the first quarter of 2025, showcasing significant growth attributed to the commercial operations of its Expanded System. The company, a wholly-owned entity of Canada TMP Finance Ltd., experienced a remarkable increase in Adjusted EBITDA, reflecting the robust performance of its base business.
Financial Performance
For the quarter ending March 31, 2025, TMC’s Adjusted EBITDA soared to $568 million, marking an increase of $532 million from the same period last year. This financial leap is linked to the commencement of the Expanded System operations in May 2024. The refinancing in late 2024 reduced interest costs, enabling TMC to optimize its system and increase returns to shareholders.
Capital Structure and Returns
In December 2024, Canada TMP Finance Ltd. facilitated the repayment of $17.9 billion in guaranteed third-party debt, which resulted in reduced interest expenses. During the first quarter, TMC distributed $311 million to Canada TMP Finance Ltd., including $148 million in interest payments and $163 million in cash dividends. These distributions are projected to grow significantly in the coming years.
Operational Insights
The Expanded System reported an average daily mainline throughput of approximately 757,000 barrels per day (bpd) during the initial quarter. This included 445,000 bpd to the Westridge Marine Terminal, 227,000 bpd to Washington state via the Puget Sound Pipeline, and 85,000 bpd to British Columbia delivery points. Additionally, TMC achieved a new monthly high in March with 29 vessels loaded at the Westridge Marine Terminal.
Contractual and Revenue Growth
The Expanded System’s operations are underpinned by long-term transportation service contracts covering roughly 80% of its capacity. These contracts have substantially increased transportation volumes, revenue, and Adjusted EBITDA. Despite a $10 million year-over-year decrease in net income, TMC’s underlying financial dynamics have evolved considerably, with lower interest expenses offset by higher depreciation and amortization costs.
CEO’s Perspective
Mark Maki, CEO of TMC, emphasized the strategic value of the Trans Mountain pipeline to Canada’s economy, highlighting its role in opening new global markets for Canadian energy and reducing reliance on a single U.S. market. Maki praised the team’s dedication to safety and operational excellence.
Future Prospects
Looking ahead, TMC is exploring optimization projects aimed at enhancing pipeline capacity by 200,000 to 300,000 bpd. These initiatives may involve using drag-reducing agents to improve flow efficiency. TMC continues to operate under interim tolls approved by the Canada Energy Regulator, with final arguments scheduled for late 2025.
Forward-Looking Statements and Risks
TMC’s forward-looking statements include expectations around future distributions, potential optimization projects, and the anticipated increase in pipeline capacity. These projections are subject to various risks and uncertainties, including regulatory decisions, economic conditions, and geopolitical factors.
Note: This article is inspired by content from https://www.globenewswire.com/news-release/2025/05/31/3091379/0/en/Trans-Mountain-Corporation-Releases-First-Quarter-2025-Financial-Results.html. It has been rephrased for originality. Images are credited to the original source.