Calgary, Alberta--(Newsfile Corp. - August 27, 2025) - Trans Mountain Corporation ("TMC" or "the Company") today announced its financial and operating results for the second quarter of 2025.
"Through the second quarter and year-to-date, Trans Mountain has delivered sustained operational excellence and reliable financial performance," said Mark Maki, Chief Executive Officer, Trans Mountain. "Since the beginning of the year, we've returned $729 million to the federal government through interest, fees and dividends. We're on track to exceed $1.25 billion by year-end. These are tangible returns to Canadians."
Second quarter results reflect the continued strong operating performance of TMC following the commencement of commercial operations on the Expanded System as of May 1, 2024. Revenues and Adjusted EBITDA have increased significantly following the commercial commencement of the Expanded System on May 1, 2024.
Financial Highlights:
Adjusted EBITDA: Second quarter Adjusted EBITDA increased to $558 million, compared to $283 million in the same period of the prior year due to increased throughput and higher tolls since the commercial commencement of the Expanded System. In the second quarter, transportation revenues increased by 85% while operating expenses increased by less than half at 44%. Year-to-date Adjusted EBITDA increased to $1,126 million compared to $319 million in the same period of the prior year.
Net Income: Second quarter net income was $150 million compared to a net loss of $48 million in the same period of the prior year as a result of the commercial commencement of the Expanded System and a strengthened balance sheet. Year-to-date net income increased to $298 million versus $110 million in the same period of the prior year.
Capital Return: During the second quarter an aggregate of $313 million was paid to Canada TMP Finance Ltd., ("TMP Finance"), the entity which holds the Government of Canada's investment in TMC, consisting of $150 million in interest payments and $163 million in cash dividends. Year-to-date $729 million has been paid in the form of dividends, interest payments and guarantee fees. These distributions are expected to grow significantly in 2026 and beyond.
Operational Highlights:
- Throughput: During the second quarter, the Expanded System had an average daily throughput of 703,000 barrels per day (bpd), including 443,000 bpd delivered to Westridge Marine Terminal, 90,000 bpd to BC delivery points and 170,000 bpd delivered to Washington State on the Puget Sound Pipeline. Second quarter throughput was lower than the prior quarter due to planned maintenance in the refining sector and other market conditions. Year-to-date throughput was 730,000 bpd compared to 402,000 bpd in the same period of the prior year. Utilization year-to-date is 82%.
- Vessel Traffic: For the second quarter, 74 vessels were loaded at Westridge Marine Terminal and the same number of vessels were loaded in the prior quarter of this year. Since the commercial commencement of the Expanded System on May 1, 2024, TMC has loaded 306 vessels at the Westridge Marine Terminal with vessel destinations broadly split between the U.S. West Coast and Asia.
Since the commercial commencement of the Expanded System, all deliveries have been subject to the Expanded System tariff and tolls. Contractually committed revenues associated with the 15-and 20-year transportation service contracts covering approximately 80% of the Expanded System's capacity have resulted in a significant increase to transportation volumes, revenues and Adjusted EBITDA.
"The expansion has unlocked new opportunities for Canada's energy sector. In Q2, we continued to open doors to high-demand markets across Asia -- providing greater egress optionality, improving pricing for Canadian crude and reinforcing Canada's role as a global energy supplier," said Maki. "As global demand rises and Canadian producers scale to meet it, Trans Mountain will continue to serve as a critical link to global markets increasing Canada's energy competitiveness and economic resilience."
Financial and Operating Highlights:
| Three months ended June 30 | Six months ended June 30 | |||||||||||
| (millions of Canadian dollars, except throughput amounts) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Revenues | 719 | 396 | 1,448 | 521 | ||||||||
| Adjusted EBITDA | 558 | 283 | 1,126 | 319 | ||||||||
| Net income (loss) | 150 | (48 | ) | 298 | 110 | |||||||
| Adjusted funds from operations | 397 | (59 | ) | 799 | (185 | ) | ||||||
| Dividends declared | 163 | - | 356 | - | ||||||||
| Mainline deliveries (bpd) | 703,000 | 471,000 | 730,000 | 402,000 | ||||||||
| Utilization | 79% | 68% | 82% | 81% | ||||||||
Looking Forward
Toll Hearing: TMC continues to operate under an interim toll structure currently before the Canada Energy Regulator (CER). On November 30, 2023, the CER approved preliminary interim tolls for the Expanded System, which remain in effect today. Under the current CER hearing timeline, final arguments are scheduled for early 2026.
Optimization Opportunities: Trans Mountain is exploring both short and long-term optimization projects aimed at increasing pipeline capacity by 200,000 bpd to 300,000 bpd. Potential solutions may include the use of drag-reducing agents to increase flow efficiency, as well as other operational enhancements to improve system capabilities.
Summary of Quarterly Results:
| (millions of Canadian dollars, except throughput amounts) | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | ||||||||||||
| Revenues | 719 | 729 | 695 | 666 | 396 | 125 | ||||||||||||
| Adjusted EBITDA | 558 | 568 | 515 | 512 | 283 | 36 | ||||||||||||
| Net income (loss) | 150 | 148 | (37 | ) | (68 | ) | (48 | ) | 158 | |||||||||
| Adjusted funds from operations | 397 | 402 | 137 | 93 | (59 | ) | (126 | ) | ||||||||||
| Total payments to TMP Finance(1) | 313 | 416 | - | - | - | - | ||||||||||||
| Mainline deliveries (bpd) | 703,000 | 757,000 | 721,000 | 692,000 | 471,000 | 332,000 | ||||||||||||
| Utilization | 79% | 85% | 81% | 78% | 68%(2 | ) | 111% |
(1) Includes dividends, interest payments and guarantee fees paid.
(2) Final line fill on the expanded line was completed in early May 2024, which impacted system utilization in the period.
Total payments to TMP Finance include contractual commitments for interest as well as discretionary payments. During the second quarter, Trans Mountain generated $397 million of adjusted funds from operations, incurred $49 million of costs on the Trans Mountain Expansion Project, and declared $163 million in dividends. As at June 30, 2025, the Company held $462 million of cash reserves to address future obligations and working capital needs.
See the full financial statements and management report documents for further information. The Company's financial results are also included in Canada Development Investment Corporation's ("CDEV") consolidated quarterly financial statements. See Canada Development Investment Corporation's Quarterly Report.
Forward-looking information
This news release contains certain statements that constitute forward-looking information within the meaning of applicable Canadian securities laws ("forward-looking information"). Forward-looking information is not historical fact, but instead represents the current expectations of TMC regarding future operating results and other future events relating to TMC, many of which, by their nature, are inherently uncertain and outside of the control of TMC. Forward-looking information can be identified by words or phrases such as "will", "may", "expect", "anticipate", "believe", "intend", "plan", "seek", "aim", "potential", "should", "would" and similar words or expressions. Forward-looking information in this news release includes, but is not limited to: expectations regarding future distributions; expected timing for final arguments for the current CER hearing; potential optimization projects and the expected increase in pipeline capacity resulting from such projects; the opening of global markets for Canadian energy and long-term economic benefits resulting from TMC's infrastructure. Actual results could differ materially from those anticipated in the forward-looking information. The forward-looking information in this news release is based on certain assumptions that TMC has made regarding, among other things: market conditions; economic conditions; prevailing governmental policies; regulatory, tax, and environmental laws and regulations; inflation rates and commodity prices; future demand for space on TMC's pipeline system; interest, tax and foreign exchange rates; and expected cash flows and availability of funds. Although TMC believes the assumptions and other factors reflected in the forward-looking information are reasonable as of the date hereof, there can be no assurance that these assumptions and factors will prove to be correct and, as such, forward-looking information is not a guarantee of future performance. Forward-looking information is subject to a number of known and unknown risks and uncertainties that could cause actual events or results to differ materially, including, but not limited to: the regulatory environment and decisions, including the outcome of regulatory hearings; the available supply and price of energy commodities; TMC's ability to successfully implement its strategic priorities; the operating performance of TMC's pipelines and related assets; performance and credit risk of TMC's counterparties; the geopolitical environment; actions taken by governmental or regulatory authorities; changes in laws; the occurrence of unexpected events such as fires and severe weather conditions; cyber-attacks and other accidents or similar events and adverse general economic and market conditions or other risk factors, many of which are beyond the control of TMC. The foregoing list of assumptions and risk factors should not be construed as exhaustive. The forward-looking information contained in this news release speaks only as of the date hereof. TMC does not undertake any obligation to publicly update or revise any forward-looking information contained herein, except as required by applicable laws. All forward-looking information contained in this news release is expressly qualified by this cautionary statement.
GAAP and Non-GAAP measures
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. The non-GAAP measures discussed above should not be considered as an alternative to or more meaningful than revenues, net income, operating income or other U.S. GAAP measures. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization and equity AFUDC) is a non-GAAP measure we use to evaluate our operating performance and is calculated from its most directly comparable U.S. GAAP measure, operating income but excludes 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 under U.S. GAAP by rate-regulated entities to reflect a return on the equity and debt components of capital invested in construction work in progress.
About Trans Mountain
Trans Mountain Corporation (together with its wholly-owned subsidiaries, "Trans Mountain") operates Canada's only pipeline system transporting oil products to the West Coast of Canada. Trans Mountain is a wholly owned entity of Canada TMP Finance Ltd., a subsidiary of Canada Development Investment Corporation (CDEV), the entity which holds the Government of Canada's investment in TMC. Trans Mountain has nominal capacity to deliver 890,000 barrels of petroleum products each day through a pipeline system of more than 1,180 kilometres of pipeline in Alberta, British Columbia and 111 kilometres of pipeline in Washington State. Trans Mountain also operates a state-of-the-art loading facility, Westridge Marine Terminal, with three berths providing tidewater access to global markets. As a Federal Crown Corporation, Trans Mountain continues to build on more than 70 years of experience delivering operational and safety excellence through its pipeline system.
Contact information:
Media Relations
Toll-free 1 855 908 9734
media@transmountain.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/264225
SOURCE: Trans Mountain
