TransCanada First-Quarter Profit Falls 35%
29 Aprile 2016 - 3:50PM
Dow Jones News
TransCanada Corp. on Friday said its first-quarter profit fell
35%, hurt in part by one-time costs related to its decision to
cancel coal-power purchase deals in its home province of
Alberta.
Adjusted to exclude items, however, the pipeline operator's
results came in ahead of analyst expectations as stronger earnings
from the Bruce Power nuclear power plant in Ontario helped offset a
lower contribution from it liquids pipelines operation.
Calgary, Alberta-based TransCanada, which last month agreed to
buy Columbia Pipeline Group Inc. for $10.2 billion, posted an
overall quarterly profit of 252 million Canadian dollars ($201
million), or 36 Canadian cents a share, down 35% from a year
earlier.
Adjusted to exclude items, such as a C$211 million charge for
the terminated power-purchase deals and C$26 million in costs
related to the Columbia Pipeline deal, TransCanada's earnings rose
6% to C$494 million, or 70 Canadian cents a share. The Thomson
Reuters mean estimate was for a profit of 66 Canadian cents a
share.
Revenue fell 11% to C$2.55 billion.
TransCanada said it expects its purchase of Columbia to close in
the second half of the year, subject to shareholder and regulatory
approvals.
"The addition of Columbia to our resilient base business is a
transformational change and creates an industry-leading portfolio
of near-term growth projects," Chief Executive Russ Girling said in
a release.
TransCanada has struggled to build new oil pipelines amid public
and government concern that the projects would harm the environment
and foster reliance on fossil fuels. The U.S. in November rejected
its proposed Keystone XL pipeline, which would have transported oil
from Canada's landlocked oil sands to Gulf Coast refineries.
More recently, the Canadian province of Quebec said in March it
would seek an injunction against the company's Energy East pipeline
to ensure the project meets provincial environmental guidelines.
TransCanada reiterated on Friday that it doesn't expect any delay
in the review process now under way by Canada's main energy
regulator, the National Energy Board.
TransCanada's proposed C$15.7 billion Energy East project is a
1.1-million-barrel-a-day pipeline that will carry crude oil from
landlocked Alberta and Saskatchewan to refineries on Canada's east
coast.
Write to Judy McKinnon at judy.mckinnon@wsj.com
(END) Dow Jones Newswires
April 29, 2016 09:35 ET (13:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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