Pipeline company South Bow sees profits, revenues fall in first quarter

Pipeline facilities now owned by South Bow Corp. are seen in Hardisty, Alta., on Friday, Nov. 6, 2015. THE CANADIAN PRESS/Jeff McIntosh

CALGARY — Crude pipeline operator South Bow Corp. has reported a drop in quarterly profits and revenues.

The Calgary-based company says net income for the first three months of 2025 was US$88 million, down from US$112 million a year earlier, before it spun off from TC Energy.

Net income per share was 42 cents US compared with 54 cents US during the first quarter of 2024.

Revenues were US$498 million, a drop from US$544 million a year earlier.

In early April, a segment of South Bow's Keystone pipeline in North Dakota ruptured, spilling more than 556,000 litres of oil onto farmland.

The company said it has recovered most of the spilled oil, aims to fully clean up the site by mid-year and expects insurance policies to cover the remediation costs.

In a news release late Thursday, South Bow said there's more crude oil pipeline capacity in Western Canada than there is supply to fill it.

"As a result, the demand for uncommitted capacity on South Bow’s Keystone Pipeline is expected to remain low in the near term," it said.

"Additionally, rapidly changing global trade policies, including tariffs, have introduced economic and geopolitical uncertainty, leading to significant volatility in commodity prices and pricing differentials."

The Keystone system starts in Hardisty, Alta., and delivers oilsands crude to refineries in the U.S. Midwest and Gulf Coast, as well as the Cushing, Okla., storage hub. During the first quarter, about 613,000 barrels per day flowed on the line, down from 643,000 a year earlier.

This report by The Canadian Press was first published May 15, 2025.

Companies in this story: (TSX: SOBO) (TSX: TRP)

Lauren Krugel, The Canadian Press