05:32 PM EDT, 05/15/2025 (MT Newswires) -- South Bow ( SOBO ) was last seen up 3.2% in after hours New York trading after the company on Thursday reported lower earnings and revenues for the first quarter while providing a wary market outlook and leaving its 2005 guidance largely unchanged from when originally introduced.

South Bow ( SOBO ), spun out from TC Energy ( TRP ) in October to hold its liquid-pipelines network, reported net income per share of US$0.42 versus $0.54 a year earlier. Normalized per share was $0.47 compared to $0.55. FactSet did not provide an EPS forecast for Q1.

South Bow ( SOBO ) recorded revenues of $498 million versus $544 million a year earlier and appearing to miss a FactSet forecast of $521.6 million.

Among other highlights, South Bow ( SOBO ) recorded first-quarter throughput of approximately 613,000 barrels per day (bbl/d) on the Keystone Pipeline, with a System Operating Factor of 98%, and approximately 726,000 bbl/d on the U.S. Gulf Coast segment of the Keystone Pipeline System.

The company said it "demonstrated strong project execution", completing construction of the Blackrod Connection Project's 25-km crude oil and natural gas pipeline segments while achieving an "excellent" safety performance. South Bow ( SOBO ) added it remains on schedule to complete the facility work and be ready for in-service in early 2026, with associated cash flows expected to increase through 2027.

Subsequent to period end, South Bow ( SOBO ) responded to an oil release at Milepost 171 of the Keystone Pipeline near Fort Ransom, N.D., on April 8. With approval from the Pipeline and Hazardous Materials Safety Administration, South Bow ( SOBO ) safely restarted the pipeline late on April 15 with certain operating pressure restrictions.

On market outlook, SouthBow said crude oil pipeline capacity in the Western Canadian Sedimentary Basin continues to exceed crude oil supply. As a result, the demand for uncommitted capacity on South Bow's ( SOBO ) Keystone Pipeline is expected to remain low in the near term. 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 company's shares were last seen up US$0.84 to US$26.77 after hours. They closed up $0.18 to $36.15 on the Toronto Stock Exchange.