South Bow Reports Strong Q2 Results Amid Global Crude Disruptions
South Bow Corp. (NYSE:SOBO) reported strong second-quarter results in August, driven by increased throughput on its US Gulf Coast pipeline system amid global crude supply disruptions. Revenue reached $546 million with net income climbing to $134 million or $0.64 per share. The company also declared a quarterly dividend of $0.50 per share payable October 15. Throughput averaged around 800,000 barrels per day in Q2, up from previous quarters and the prior year. Normalized EBITDA rose to $280 million with distributable cash flow reaching $175 million. South Bow also secured long-term commitments for firm transportation service through an open season. Despite strong first-half performance, management expects a softer second half due to declining crude inventories at Cushing and reduced demand for Gulf Coast capacity. Third-quarter EBITDA is expected about 10% below Q2 levels. The company raised full-year guidance but faces ongoing leverage concerns with total long-term debt standing at $5.734 billion.
Tickers: $SOBO
Topics: Balance Sheet Improvements Crude Oil Market Disruptions Dividend Announcement Pipeline Operations