AltaGas says it is preparing to slow loading at its Ridley Island propane export terminal in Prince Rupert as a walkout at the port continues and the Canada Industrial Relations Board orders Trigon to end some contractor work.
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AltaGas Ltd. says it is preparing for a slowdown in operations at its propane export facility in northern British Columbia as a strike by workers at the Port of Prince Rupert continues.
The walkout began Oct. 2 by members of the International Longshore & Warehouse Union employed by Trigon Pacific Terminals, which provides rail logistics and berthing services for the Ridley Island Propane Export Terminal operated by AltaGas.
AltaGas chief executive Vern Yu said that up until a few days earlier, there had been minimal impact, but on Tuesday the Canada Industrial Relations Board ordered Trigon to stop using contractors for some duties, including handling petroleum products that AltaGas exports to high-demand Asian markets. "We're obviously very disappointed about this ruling because we don't believe that the ruling takes into account all case law in Canada and we're going to vigorously take all legal actions we can to reverse its decision," Yu told analysts on a conference call to discuss third-quarter results. He added, "But in the interim we're going to operate under modified mitigation plans, which will slow down our ability to load vessels at planned throughputs."
Yu said the disruption is occurring as Asian countries seek stable supplies of propane, and he linked current export volumes of liquid petroleum gases to higher prices in Asian markets. He said export volumes through the Strait of Hormuz are more than 70 per cent lower than they were before the United States and Israel launched their war on Iran in February.
Yu also pointed to federal legislation as part of the broader dispute, saying Bill C-39 includes changes to the Canada Labour Code that aim to clarify a minister’s power to end a work stoppage in some cases. In Ottawa on Thursday, labour leaders warned unions could bring about countrywide job action if the Labour Code changes are rammed through, and they said it amounts to an attack on the right to strike.
AltaGas reported a third-quarter loss of $21 million attributable to common shares, compared with a loss of $25 million in the same quarter last year, for the quarter ended Sept. 30. The loss was seven cents per diluted share, compared with a loss of eight cents per diluted share a year earlier. On a normalized basis, the company said it earned 29 cents per diluted share in the latest quarter compared with a normalized profit of four cents per diluted share a year ago, on revenue of $3.43 billion versus $2.60 billion a year earlier.
Yu said the company’s ability to route shipments through a port terminal in Washington state is limited. He also said AltaGas is carrying strong momentum into the fourth quarter and expects to deliver full-year results toward the high-end of its 2026 guidance range, including normalized earnings per share between $2.35 and $2.60 for 2026.
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