South Bow shares rise as company reiterates 2025 guidance

Published 15/05/2025, 22:32
South Bow shares rise as company reiterates 2025 guidance

Investing.com -- South Bow Corporation (NYSE:SOBO) shares gained 3.2% after the pipeline operator reported first-quarter earnings that beat expectations and reaffirmed most of its full-year outlook, despite facing operational challenges.

The Calgary-based company posted adjusted earnings per share of $0.42 for the quarter ended March 31, down from $0.54 in the same period last year and lower than analyst estimates by $0.02. Revenue fell 8.5% YoY to $498 million from $544 million in the prior year, also falling short of analyst expectations of $527 million.

South Bow maintained its 2025 normalized EBITDA guidance of $1.01 billion, plus or minus 2%, despite lower demand for uncommitted capacity on its pipeline systems. The company recorded first-quarter normalized EBITDA of $266 million, down 8% from the previous quarter.

"We demonstrated financial resilience despite significant market volatility, owing to our highly contracted assets," said South Bow CEO in a statement.

The company faced operational challenges during the quarter, responding to an oil release on its Keystone Pipeline in North Dakota in early April. South Bow safely restarted the pipeline on April 15 with certain operating pressure restrictions.

South Bow reported throughput of 613,000 barrels per day on the Keystone Pipeline in Q1, down from 643,000 barrels per day in the same quarter last year. The company maintained its quarterly dividend of $0.50 per share.

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