TransCanada’s three core businesses generated solid earnings in Q3 2014

TransCanada Corporation has announced net income attributable to common shares for Q3 2014 of CAN$ 457 million or CAN$ 0.64 per share compared to CAN$ 481 million or CAN$ 0.68 per share for the same period in 2013. Comparable earnings for Q3 2014 were CAN$ 450 million or CAN$ 0.63 per share compared to CAN$ 447 million or CAN$ 0.63 per share for the same period last year. TransCanada's Board of Directors also declared a quarterly dividend of CAN$ 0.48 per common share for the quarter ending 31 December 2014, equivalent to CAN$ 1.92 per common share on an annualised basis.

"Our three core businesses generated solid earnings and cash flow during the quarter," said Russ Girling, TransCanada's President and Chief Executive Officer. "Contributions from new assets like the Keystone Gulf Coast Extension and the Tamazunchale Extension in Mexico, along with strong results from Bruce Power, highlight the benefits of a diversified and growing portfolio of pipeline and power assets. We are also pleased to have announced an additional CAN$ 4.7 billion of new capital projects highlighting the organic growth opportunities that are tied to our unparalleled asset footprint."

“Since the beginning of 2014, we have captured CAN$ 6.6 billion of capital projects related to our Canadian regulated natural gas pipeline assets. This includes CAN$ 2.7 billion of new investment associated with the NGTL System, CAN$ 2 billion of expansions and facility modifications to the Canadian Mainline in Ontario and the previously announced CAN$ 1.9 billion Merrick Mainline Pipeline Project. With these additions, our capital programme now totals CAN$ 46 billion of commercially secured projects, essentially all of which are backed by long-term contracts or cost of service business models. This growth portfolio includes CAN$ 24 billion of liquids pipelines, CAN$ 20 billion of natural gas pipelines and CAN$ 2 billion of power generation facilities. We continue to advance this unprecedented slate of growth initiatives, with many currently proceeding through their respective regulatory processes. Over the remainder of the decade, subject to required approvals, this blue-chip portfolio of contracted energy infrastructure is expected to generate significant sustainable growth in earnings, cash flow and dividends.

"On 1 October 2014, we closed the sale of our remaining 30% interest in Bison Pipeline LLC to our master limited partnership, TC PipeLines, LP (the Partnership) for cash proceeds of US$ 215 million. This transaction underscores our commitment to drop down all of our remaining US natural gas pipeline assets to the Partnership on a more sizable and more frequent basis over the coming quarters and years. This will provide us with significant cash proceeds and is an important element of funding our unprecedented growth portfolio, while enhancing the size and diversity of the Partnership's asset base, positioning it with visible, high quality future growth.

“Looking forward, our current asset base and financial strength positions us well to generate significant long-term shareholder value through execution of our industry-leading capital programme and our commitment to continuously evaluate our approach to capital allocation,” Girling concluded.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/business-news/05112014/transcanadas-three-core-businesses-generated-solid-earnings-in-q3-2014-983/