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TransCanada 2Q16 financial results

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World Pipelines,

TransCanada Corporation has recently announced its net income attributable to common shares of $365 million for 2Q16, amounting to US$0.52 per share. For the same period in 2015, results stood at US$429 million or US$0.60 per share.

Comparable earnings 2Q16 were US$366 million, or US$0.52 per share, compared to US$397 million, US$0.56 per share, for the same period in 2015.

TransCanada's Board of Directors also declared a quarterly dividend of US$0.565 per common share for the quarter ending 30 September 2016, equivalent to US$2.26 per common share on an annualised basis.

"Our portfolio of high-quality energy infrastructure assets continued to perform well during 2Q16," said Russ Girling, TransCanada's President and Chief Executive Officer. "Net income was impacted by one-time dividend equivalent payments on the subscription receipts related to the acquisition of Columbia, while comparable earnings largely reflected planned maintenance activities at Bruce Power, including an approximate once-a-decade station containment outage. With the addition of Columbia and Bruce Power's planned maintenance outages now largely complete, we expect to generate stronger results going forward."

On 1 July 2016, TransCanada completed the acquisition of Columbia Pipeline Group, Inc. (Columbia) valued at US$13 billion, comprised of a purchase price of approximately US$10.3 billion and debt of approximately US$2.7 billion. The subscription receipts issued in April to fund a portion of the Columbia acquisition were exchanged into common shares following closing.

"The Columbia acquisition reinforces TransCanada's position as a leading North American energy infrastructure company with an extensive pipeline network linking the continent's most prolific natural gas supply basins to its most attractive markets," added Girling. "The Columbia assets are very complementary to our existing business and we expect significant synergies and growth in the years to come. Our industry-leading US$25 billion portfolio of near-term capital projects builds upon a solid portfolio of stable and predictable pipeline and energy assets that together supports and may augment an expected eight to ten per cent annual dividend growth rate through 2020."

Adapted from press release by Anna Nicklin

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