Canadas South Bow cuts rough trading team focuses on contracted pipeline volumes, says sources say sources

* South Bow fired 2 crude dealers on April 4, sources say. * It wants to step contracted volumes to its pipeline systems * South Bow see marketing unit EBITDA down $ 30 million in 2025 by Georgina McCartney Houston, April 11 (Reuters) -Calgary -based pipe root business South Bow has cut the size of its pipeline team by selling the volume by Volume selling by selling the volume by selling the volume by selling the volume by selling the volume by selling the volume by selling the volume by selling the volume by selling the volume volume by volume volume. Systems and reduce how much rough it trades, three people told Reuters this week. In October 2024, South Bow was spotted from the Canadian Pipeline Company TC Energy as part of a plan to help TC reduce its debt tax. South Bow fired two traders on April 4, people said. TC Energy already cut a member of the team in June last year before the spin-off. The latest layoffs reduced the crude trade team to two of five. A South Bow spokesman declined to comment on employee matters for this story. The company is looking for more stable revenue by contracted volumes sent by its pipeline systems, the sources said, following the start of the Trans Mountain Pipeline in Canada, fewer trading opportunities left it. South Bow expects Ebitda to negative for his marketing unit, which includes its crude trade team, and falls $ 30 million from $ 12 million in 2024, he said in the earnings report of the fourth quarter. However, it expects the company’s normalized total EBITDA to be around $ 1.01 billion, compared to $ 1.09 billion in 2024. The projected loss of the marketing unit is partly because Canada’s highly expected Trans Mountain Pipeline expansion began. The Trans Mountain Pipeline takes Alberta to the Pacific Coast of Canada for export. The pipeline is expected to take away arbitrage opportunities from South Bow, CEO Bevin Wirzba explained during an investor call in March. The higher overall Canadian pipeline capacity and uncertainty of potential rates will also weigh on the marketing earnings this year, the company said in its quarterly earnings report. South Bow expects 90% of its ebitda to be secured by dedicated arrangements in 2025. “With a contracted strategy, those dollars Ebitda should be more worthy to shareholders, given its consistency,” Wirzba said in the investor call. South Bow runs the 750,000 Vat per day Marketlink Pipeline System, which sends crude oil from Cushing, Oklahoma, to the US Golf Coast via the Golf Coast expansion of the Keystone pipeline. The company will redistribute the available place capacity on Marketlink that the trade team has used to increase contracted shipping to third-party customers, sources told Reuters. According to Lseg, South Bow’s shares last traded at around $ 32.30, according to Lseg, which recovered a few losses after falling at a five-month low at $ 31.10 after South Bow closed the Keystone pipeline to an oil spill. (Reporting by Georgina McCartney in Houston; Editing by Liz Hampton and Himani Sarkar) first published: 12 Apr 2025, 05:48 am Ist