CALGARY – South Bow Corp., the oil pipeline operator spun off from TC Energy Corp. last year, says its marketing segment could come under pressure if a 10 per cent tariff on U.S. energy exports persists.
The Calgary-based company says the levy imposed this week, and Canadian counter tariffs against the U.S., have caused volatility in the price difference between heavy Canadian and light U.S. crude prices.
South Bow says it has cut its 2025 outlook for normalized earnings before interest, taxes, depreciation and amortization in its marketing segment by about $30 million compared with 2024 due in part to the market uncertainty resulting from tariffs.
During the last three months of 2024, South Bow reported normalized net income of $112 million, compared with $94 million during the same period a year earlier when its business was still part of TC Energy.
That amounted to 54 cents per share, compared with 45 cents per share.
Revenue in the quarter dropped to $488 million from $540 million.
This report by The Canadian Press was first published March 6, 2025.