TransCanada Corporation (TransCanada) has recently announced its 3Q16 results. For the 3Q16 period, the company reported a net loss attributable to common shares of CAN$135 million, or CAN$0.17 per share. This can be compared to the same period last year (3Q15) where it had a net income of CAN$402 million, or CAN$0.57 per share.
The final 3Q16 results included a CAN$656 million after-tax goodwill impairment charge related to the company’s US Northeast Power business. Excluding the net loss on the goodwill impairment and certain other specific items, comparable earnings for 3Q16 were CAN$622 million, or CAN$0.78 per share, compared to CAN$440 million or CAN$0.62 per share for 3Q15.
TransCanada's board of directors also declared a quarterly dividend of CAN$0.565 per common share for the quarter ending 31 December 2016, equivalent to CAN$2.26 per common share on an annualised basis.
"Excluding specific items, comparable earnings per share for the quarter were significantly higher than last year as a result of the Columbia acquisition and continued solid performance from our large portfolio of high-quality energy infrastructure assets," said Russ Girling, TransCanada's President and CEO.
"Since completing the Columbia transaction, we have made significant progress in integrating its operations with our existing US natural gas pipeline business and are well on track to realise the targeted US$250 million of annualised benefits associated with the acquisition," he added.
On 1 July, TransCanada completed the acquisition of Columbia Pipeline Group, Inc. (Columbia) for US$13 billion. Columbia operates a portfolio of approximately 24 000 km (15 000 miles) of regulated natural gas pipelines, 300 billion ft3 of natural gas storage facilities and related midstream assets.
"The addition of Columbia reinforces our position as one of North America's leading energy infrastructure companies with an extensive pipeline network that links the continent's most prolific natural gas supply basins to its most attractive markets," added Girling.
"Looking forward, the addition of Columbia's US$7.7 billion growth programme brings our portfolio of near-term capital projects to over CAN$25 billion. As these projects progress through the permitting and construction phases and into operation over the balance of the decade, they are expected to generate significant growth in earnings and cash flow and support an expected annual dividend growth rate at the upper end of the Company's previous expectation of 8% - 10% through 2020."
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