TransCanada Profit Beats Street
Canada's No. 2 pipeline operator, TransCanada Corp, reported a better-than-expected quarterly profit, helped by higher earning from its U.S. and Mexican natural gas pipelines business.
Earnings from its U.S. natural gas pipelines more than doubled, helped by its acquisition of Columbia Pipeline Group Inc last year for about $13 billion.
Profit from its Mexico natural gas pipelines also rose about 162 percent to C$118 million.
The company's net profit attributable to shareholders rose to C$643 million ($467 million), or 74 Canadian cents per share, in the first quarter ended March 31 from C$252 million, or 36 Canadian cents per share, a year earlier.
The latest quarter included about C$48 million in charges, mainly related to the acquisition of Columbia Pipeline Group. The year-ago quarter included charges of about C$211 million, mainly related to the termination of Alberta power purchase agreements.
Excluding items, the company earned 81 Canadian cents per share, beating analysts' average estimate of 74 Canadian cents per share, according to Thomson Reuters I/B/E/S.
Revenue rose 35.5 percent to C$3.39 billion, above analysts' average estimate of C$3.19 billion.
TransCanada, the company behind the controversial Keystone XL pipeline, said on Thursday it would sell stakes in two natural gas pipelines for $765 million.
Reporting by Arathy S Nair
