Quote:
Originally Posted by jstubbs
They’re estimating yearly the pipeline will be incurring $3 billion in revenue and operating costs of $600m. That’s before $1.6 billion per year in interest costs, which shrink as debt is reduced. So at current projections, there’s $800m worth of cash flow available for debt repayment and/or remittance to the public purse right out of the gate that should only grow.
That’s estimates on crown corp operations, too. Now, analysts have been substantially wrong before (such as on the construction of the pipeline), but you’ll note that publicly traded well experienced midstream corp TC Energy also experienced major cost overruns ($6 billion to over $15 billion) on CGL, but moreover operation & maintenance on a pipeline is substantially more simple than construction of pipeline through the Rockies so overruns should not be nearly as prevalent.
Even if they manage to completely bungle operating costs and double them from $600m to $1.2b, there’s still $200+m worth of free cash flow off this project. It’s still a net benefit.
The dislike for the current Prime Minister shouldn’t overshadow what is good decision making. Not everything has to be about “owning the libs”.
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Our lieberal leader does not think in monetary terms, or fiscal responsibility. There is no way they would operate this as a money making venture.
BW