TC Energy Corp. (TRP) has announced plans to split into two separate companies as it reported that its second-quarter profit fell 72% from a year earlier.

The Calgary-based energy company said it intends to spin off its crude oil pipelines business, creating two publicly traded companies in the process.

Once the separation is completed, TC Energy will operate more as a utility company going forward, with a focus on natural gas infrastructure as well as nuclear, pumped hydro energy storage, and low-carbon energy.

The oil pipeline business will remain headquartered in Calgary and focus on enhancing the value of the company's nearly 5,000 kilometres of crude oil pipelines, including the Keystone pipeline that carries oil from Alberta to refineries in the U.S.

The separation is expected to be completed by the end of 2024.

TC Energy announced the split as it reported Q2 earnings that showed its net income, or profit, fell 72% to $250 million from $889 million a year earlier.

Earnings per share (EPS) in the April through June period amounted to $0.24 cents, down from $0.90 in the second quarter of 2022.

Revenues for the quarter ended June 30 totaled $3.8 billion, up 6% from $3.6 billion a year ago.

The results come as prices for crude oil have declined from a peak reached in June 2022.

On July 24, TC Energy announced that it is selling its 40% stake in its Columbia Gas Transmission and Columbia Gulf Transmission systems to New York-based Global Infrastructure Partners for $5.2 billion.

TC Energy’s stock has declined 32% over the last 12 months to trade at $47.30 a share.