Trans Mountain Corporation Releases Fourth Quarter 2023 Results

Press Release

Trans Mountain Corporation (“TMC”) released the company’s financial statements and associated management report for the three and 12-month periods ending December 31, 2023. The company’s financial results are also included in Canada Development Investment Corporation’s consolidated quarterly financial statements.

TMC’s results demonstrated strong financial and operational performance as the mainline operated above capacity in 2023, with a record annual average throughput of approximately 348,000 barrels per day (bpd) compared with 323,000 bpd in 2022.

In the fourth quarter, Trans Mountain averaged approximately 337,000 bpd throughout on Mainline, compared with 322,000 bpd in the same three-month period in 2023. In the fourth quarter 2024, Trans Mountain delivered approximately 43,000 bpd to Westridge Marine Terminal in Burnaby, B.C. compared with 26,000 bpd in the same period a year earlier, and 217,000 bpd to Washington state on the Puget Pipeline, compared with 214,000 bpd in the same period a year earlier.

Adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”) reflect the results from TMC’s base business.

For the three-month period ended December 31, 2023, adjusted EBITDA decreased by $6.7 million to $45.8 million, as compared to $52.5 million in the same period of the prior year. Adjusted EBITDA for the year ended December 31, 2023, increased by $2.5 million to $189.2 million, as compared to $186.7 million in 2023.

For the three-month period ended December 31, 2023, net income increased by $1.9 million to $160.2 million, as compared to $158.3 million in the same period of the prior year. Net income for the full year ended December 31, 2023, decreased by $742.4 million to a $208.4 million loss, as compared to $534.0 million in net income in 2023.

Capital expenditures were $10.4 billion in 2023 as compared to $9.8 billion in 2022.

As of December 31, 2023, the Expansion Project was approximately 98 per cent complete with less than four kilometres of pipe to install. Trans Mountain anticipates mechanical completion and commercial service to begin in the second quarter of 2024.

See the full financial statements and management report documents here. See Canada Development Investment Corporation’s Quarterly Report here.

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. 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.

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