TransCanada’s Third Quarter Earnings Decline Due To Power Outage

TransCanada’s Third Quarter Earnings Decline Due To Power Outage
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TransCanada Corporation (NYSE:TRP) (TSE:TRP)’s third quarter net income declined from C$384 million or 55 cents per share during the same period last year, to the current C$369 million or 52 cents per share.

Its comparable earnings, excluding one-time items dropped to C$349 million, or 5o cents per share, from C$416 million or 59 cents per share during the same period in 2011. The company’s comparable earnings fell short of the average estimate of analysts based on the data compiled by Thomson Reuters.

TransCanada's Third Quarter Earnings Decline Due To Power Outage

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TransCanada Corporation (NYSE:TRP) (TSE:TRP)’s third quarter revenue slightly increased from C$2.04 billion last year to C$2.123 billion. The company also announced the decision of its board of directors to distribute a quarterly dividend payment of 44 cents per share to shareholders for the quarter ending December 31, 2012.

In a statement, Russ Girling, president and chief executive officer of TransCanada, said, “TransCanada’s diverse, high-quality energy infrastructure assets performed well in the third quarter. While the majority of our assets continued to generate stable and predictable earnings and cash flow, plant outages at Bruce Power and Sundance A along with a lower contribution from certain natural gas pipelines did adversely affect our financial results.”

Russ said the TransCanada Corporation (NYSE:TRP) (TSE:TRP) expects to increase its earnings, cash flow, and dividend payments to shareholders as the company completes the implementation of its capital program. He is positive that the company will be able to secure new growth opportunities, and it will benefit from the recovery of natural gas and power prices.

TransCanada Corporation (NYSE:TRP) (TSE:TRP) anticipates the completion of some of its projects that are already in the advanced stages of development, including the Bruce Power Unit 1 and 2 Restart Project, the Gulf Coast Project, Keystone XL, Tamazunchale extension, Canadian Solar, and the ongoing expansion of the Alberta System. According to the company, these projects cost approximately C$13 billion.

The company also expects to operate the Coastal GasLink Pipeline Project, which is designed to transfer natural gas to Canada’s West Coast for liquefaction, and shipment to Asian markets. In addition, the company also expects to run the Northern Courier and Grand Rapids oil pipeline projects in Northern Alberta, and the 900 megawatt Napanee Generating Station in Eastern Ontario by 2016.

According to the company, these projects will “generate significant, sustained earnings, cash flow, and deliver superior returns to its shareholders.”

TransCanada Corporation (NYSE:TRP) (TSE:TRP) recently announced its partnership with Phoenix Energy to build C$3 billion pipeline in Northern Alberta, to transport crude from Athabasca oil sands.

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