The Proprietor Review

Net income up by 33.3 Mullion.

The net income in the second quarter increased by 33.3 million to 63,1 million, over doubling from the second quarter last year. The quarter generated a 10 million dollar tax liability due to increased income.

Two consistent quarters

Net income for the six-month period ended June 30, 2021 increased by $59.4 million to $114.4 million, as compared to $55.0 million in the same period of the prior year. The increase is mainly due to the $81.3 million increase in equity AFUDC, due to spending on the Expansion Project, partially offset by the $19.3 million increase in income tax expense, due to higher pre-tax income, the $2.2 million increase in interest expense, and the $2.0 million decrease in Adjusted EBITDA.

TMX

EBITDA

A company’s earnings before interest, taxes, depreciation, and amortization (commonly abbreviated EBITDA, pronounced) is an accounting measure calculated using a company’s earnings, before interest expenses, taxes, depreciation, and amortization are subtracted, as a proxy for a company’s current operating profitability (i.e., how much profit it makes with its present assets and its operations on the products it produces and sells, as well as providing a proxy for cash flow).

Two quarter increase due to customer funded equity.

Customer Income toward construction, is not moved to inventory or assets, and will eventually go to capitalization.

Who is the customer.

Trans Mountain moves oil by tariff, The 12 billion dollar (funding) cost of construction of the expansion should end up as capitalized expenses and will be written off against taxable income on a scaled annual basis and rate. Meaning that if it is ever sold the deprecated rate will be subject to recapture at a selling price that morally, should shadow fair market value or better, a profit for the Canadian taxpayer when they sell..

On this Day: August 7th 2021

The first post Afghanistan war, American purple heart day is observed.

Colin Dodd’s, Accountants song…