TransCanada Beats Street

TransCanada Corp , the country's No. 2 pipeline company, reported a higher-than-expected quarterly profit on Friday, boosted by higher earnings from both its Keystone line, which carries Canadian crude to the U.S. Midwest and Gulf Coast, and its cross-country Canadian Mainline system.

Comparable earnings before interest, taxes, depreciation and amortization (EBITDA) from the Keystone system rose 25 percent to C$320 million ($246 million) in the three months to June 30.

The Calgary-based company said profit was boosted mainly by the line's extension to the Gulf Coast, which went into service in January 2014, as well as by a stronger U.S. dollar and higher uncontracted volumes.

EBITDA from TransCanada's cross-country Canadian Mainline pipeline, which carries natural gas from Alberta to Ontario, rose 6 percent to C$583 million.

Canadian Prime Minister Stephen Harper told Bloomberg TV on Wednesday he was not hopeful that the United States would approve the northern leg of TransCanada's controversial Keystone XL pipeline.

TransCanada has waited more than six years for the Obama administration to make a decision on whether to allow the project to proceed, frustrating Canadian oil producers and governments eager to see more of the country's oil reach the high-paying refinery hub on the Gulf Coast.

TransCanada's profit rose to C$397 million, or 56 Canadian cents per share, in the quarter, from C$332 million, or 47 Canadian cents per share, a year-earlier.

Analysts on average had expected earnings of 52 Canadian cents per share, according to Thomson Reuters I/B/E/S.

TransCanada's shares closed at C$50.37 on the Toronto Stock Exchange on Thursday. Up to Thursday's close, the stock had fallen nearly 12 percent this year.($1 = C$1.30) (Reporting by Sneha Banerjee in Bengaluru and Julie Gordon