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Rogers Communications revenue boosted by cable power

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(Reuters) -Canadian telecoms operator Rogers Communications Inc trumped first-quarter revenue estimates on Wednesday, buoyed by strong demand in its cable unit that provides internet and cloud-based services.

Total revenue rose 2% to C$3.49 billion ($2.77 billion) in the quarter, compared with analysts’ average estimate of C$3.35 billion, according to IBES data from Refinitiv.

Telecom providers have benefited from a surge in demand for high-speed internet from the COVID-19 pandemic caused shift to remote working and entertainment.

Revenue from the media segment, which includes television, radio broadcasting and digital media, rose 7% to C$440 million, boosted by the return of live professional sports broadcasting.

Cable service revenue increased 5% during the quarter.

Rogers, which is looking to expand its 5G infrastructure, said in March it was buying Canadian telecom services provider Shaw Communications Inc for about C$20 billion ($16.02 billion).

However, the company’s wireless service reported a 6% drop in revenue, hit by lower roaming revenue from fresh pandemic-induced travel curbs.

Net income rose to C$361 million, or 70 Canadian cents per share, from C$352 million, or 68 Canadian cents, a year earlier.

Excluding items, the company earned 77 Canadian cents per share, while analysts had expected 66 Canadian cents.

U.S.-listed shares of Rogers, which did not provide second-quarter forecast due to pandemic-led uncertainty, rose nearly 1% in low pre-market trading volumes.

($1 = 1.2596 Canadian dollars)

(Reporting by Tiyashi Datta in Bengaluru; Editing by Sherry Jacob-Phillips and Sriraj Kalluvila)

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Colonial Pipeline hackers stole data on Thursday

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The hackers who caused Colonial Pipeline to shut down on Friday began their cyberattack against the top U.S. fuel pipeline operator a day earlier and stole a large amount of data, Bloomberg News reported citing people familiar with the matter.

The attackers are part of a cybercrime group called DarkSide and took nearly 100 gigabytes of data out of Colonial’s network in just two hours on Thursday, Bloomberg reported late Saturday, citing two people involved in the company’s investigation.

Colonial did not immediately reply to an email from Reuters seeking comment outside usual U.S. business hours.

Colonial Pipeline shut its entire network, the source of nearly half of the U.S. East Coast’s fuel supply, after a cyber attack that involved ransomware.

 

(Reporting by Aakriti Bhalla in Bengaluru; Editing by Himani Sarkar)

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TC Energy posts C$1 billion quarterly loss on Keystone XL suspension

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By Nia Williams and Shariq Khan

CALGARY, Alberta (Reuters) -TC Energy Corp swung to a loss in the first quarter, hit by C$2.2 billion ($1.81 billion) impairment charges related to the suspension of its Keystone XL project, the Canadian pipeline operator said on Friday.

The KXL pipeline was planned to carry 830,000 barrels per day of heavy crude across the border from Alberta to Nebraska, but U.S. President Joe Biden revoked a key permit for the project on his first day in office.

TC Energy said the impairment charge was related to halting work on KXL and a reassessment of related projects like the Heartland Pipeline.

“We were very disappointed with the decision in January to revoke the presidential permit,” Chief Executive Francois Poirier said on an earnings call, adding the company was “opportunity-rich” in other parts of its business.

Calgary-based TC Energy owns the largest network of natural gas pipelines in North America as well as the existing Keystone oil pipeline and power and storage assets.

The company posted a C$2.51 billion loss from its oil pipelines, of which Keystone is the biggest contributor, compared with a C$411 million profit in the same period last year.

It reported net loss attributable to shareholders of C$1.1 billion, or C$1.11 per share, in the three months ended March 31 compared with a profit of C$1.1 billion a year earlier.

Excluding items, the company earned C$1.16 per share, slightly better than analysts’ average estimate of C$1.10, according to Refinitiv IBES data.

TC Energy shares closed up 0.2% on the Toronto Stock Exchange at C$61.94.

($1 = 1.2176 Canadian dollars)

(Reporting by Shariq Khan in Bengaluru and Nia Williams in Calgary; Editing by Arun Koyyur and Marguerita Choy)

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Lion Electric says it will build new plant in Illinois, create 750 jobs

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By Tina Bellon

(Reuters) – Canadian electric vehicle company Lion Electric on Friday said it had selected Illinois as the location for its new U.S. manufacturing plant, promising to invest at least $70 million and create about 750 jobs over the next three years.

Lion, known for its electric yellow school buses, said it will build the 900,000 square foot facility in Joliet near Chicago to produce 20,000 electric buses and medium and heavy-duty trucks per year.

The company said it expected the facility to come online in the second half of 2022. Lion Chief Executive Marc Bedard said in an interview that while the Illinois factory would focus on vehicle manufacturing initially, the company might later add battery production. Lion is building a battery production facility in Canada.

Bedard said Lion is expanding in the United States when there is growing demand among school districts and companies to switch to electric transportation. Nearly 400 of the company’s electric school buses are on the road and Amazon.com Inc has said it will buy up to 2,500 trucks from Lion by 2025.

Lion’s expansion also coincides with a favorable regulatory environment under U.S. President Joe Biden, who has pushed for providing generous subsidies to the EV industry.

“We’re looking for regulatory tailwinds that will be favorable to electric,” Bedard said of his decision to build the factory in Illinois. State-funded tax credits for the plant were being negotiated, Lion said.

Lion on Friday also is expected to start trading publicly on the New York and Toronto stock exchanges following a merger with special purpose acquisition company Northern Genesis Acquisition Corp in November.

The deal was valued at $1.9 billion and Lion received nearly $500 million in net cash proceeds, the majority of which it said it plans to invest in battery technology and the new U.S. plant.

 

(This story corrects to show that investment and job creation is over a three year, not two year period in first paragraph)

 

(Reporting by Tina Bellon in Austin, Texas; editing by Grant McCool)

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