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Canada govt to stop funding Trans Mountain oil line project as costs soar 70%

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Canada said on Friday it will halt any further public funding for the Trans Mountain oil pipeline expansion, after the government-owned company behind the project said costs had surged 70% to C$21.4 billion ($16.8 billion).

Trans Mountain Corp (TMC) also delayed the finish date of the expansion by a further nine months, dealing another blow to a project already best by regulatory delays and opposition.

With the latest cost overrun, the government has told TMC to secure the necessary financing from public debt markets or financial institutions, Finance Minister Chrystia Freeland said.

“I want to assure Canadians that there will be no additional public money invested in TMC,” Freeland added.

The government has engaged BMO Capital Markets and TD Securities to provide financial advice and Freeland said the two advisers confirmed the project remains commercially viable and public financing for the project is a feasible option. The expansion project is underpinned by 20-year shipper commitments.

TMC blamed the higher cost on the impact of the COVID-19 pandemic and extreme weather in British Columbia, which temporarily shut down flows on the existing Trans Mountain pipeline in November.

The company now expects to finish the expansion in the third quarter of 2023, when it will nearly triple the capacity of the pipeline running from Alberta to the Pacific Coast to 890,000 barrels per day. That would be a boost for Canada’s oil producers, which are keen to export more crude.

But since the start, the project has faced several challenges, including opposition from indigenous peoples and environmentalists. In 2018, the Canadian government bought it for C$4.5 billion to help it get finished.

“While like everyone we are disappointed… we remain fully supportive of this world-class infrastructure project which is vital to Canada’s long-term economic success and energy security,” said Mark Little, chief executive of Suncor Energy, one of Canada’s largest oil companies and a shipper on the line.

The previous cost estimate, made in February 2020, was C$12.6 billion, while in 2017 it was pegged at C$7.4 billion. The new estimate includes the cost of all known enhancements, changes, delays and financing.

The Canadian government does not plan to be the long-term owner of the pipeline, and expects to launch a sale process in due course.

TMC said Chief Executive Ian Anderson will retire from the company and its board, effective April 1. He said the progress made over the two years was “remarkable” considering the global pandemic, wildfires and flooding in British Columbia.

“This project was crazy from a climate perspective when it was supposed to cost C$7.4 billion, but at C$21.4 billion and rising it is now economic madness,” said Keith Stewart, a strategist for Greenpeace Canada.

“It’s time to cut our losses on this white elephant.”

($1 = 1.2749 Canadian dollars)

(Reporting by Ismail Shakil and Ruhi Soni in Bengaluru; Editing by Maju Samuel and Marguerita Choy)

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Cineplex reports $24.7M Q3 loss on Competition Tribunal penalty

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TORONTO – Cineplex Inc. reported a loss in its latest quarter compared with a profit a year ago as it was hit by a fine for deceptive marketing practices imposed by the Competition Tribunal.

The movie theatre company says it lost $24.7 million or 39 cents per diluted share for the quarter ended Sept. 30 compared with a profit of $29.7 million or 40 cents per diluted share a year earlier.

The results in the most recent quarter included a $39.2-million provision related to the Competition Tribunal decision, which Cineplex is appealing.

The Competition Bureau accused the company of misleading theatregoers by not immediately presenting them with the full price of a movie ticket when they purchased seats online, a view the company has rejected.

Revenue for the quarter totalled $395.6 million, down from $414.5 million in the same quarter last year, while theatre attendance totalled 13.3 million for the quarter compared with nearly 15.7 million a year earlier.

Box office revenue per patron in the quarter climbed to $13.19 compared with $12 in the same quarter last year, while concession revenue per patron amounted to $9.85, up from $8.44 a year ago.

This report by The Canadian Press was first published Nov. 6, 2024.

Companies in this story: (TSX:CGX)

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Restaurant Brands reports US$357M Q3 net income, down from US$364M a year ago

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TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.

The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.

Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.

Consolidated comparable sales were up 0.3 per cent.

On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.

The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 5, 2024.

Companies in this story: (TSX:QSR)

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Electric and gas utility Fortis reports $420M Q3 profit, up from $394M a year ago

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ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.

The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.

Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.

Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.

On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.

The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 5, 2024.

Companies in this story: (TSX:FTS)

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