TransCanada Corp.'s Q3 earnings rise to $427M from $245M after one-time gain
09:12 PM EST Nov 01
CALGARY (CP) - TransCanada Corp., a major player in natural gas pipelines and electricity generation, says its third-quarter profit rose to $427 million, from a year-earlier $245 million, after a big one-time gain.
During the quarter, Calgary-based TransCanada (TSX:TRP) closed the sale of TransCanada Power LP to Epcor for $523 million, producing an after-tax gain of $193 million or 40 cents a share.
Earnings for the quarter ended Sept. 30 amounted to 88 cents a share, compared with 51 cents per share a year ago. Analysts' consensus forecast had been for earnings of 50 cents a share, before one-time items, according to Thomson Financial.
Funds generated from operations rose to $489 million from $387 million, on higher earnings from the power and gas transmission businesses, partly offset by an increase in net expenses.
"Higher net income from our Power business was driven in large part by higher equity income from our investment in Bruce Power," CEO Hal Kvisle said in a release.
"Also contributing to earnings growth on a year-over-year basis were contributions from TransCanada Hydro Northeast and Gas Transmission Northwest, both of which were acquired over the past year."
During the quarter, Bruce Power LP closed a deal with the Ontario Power Authority to restart and refurbish the Bruce A nuclear power units on Oct. 31. TransCanada increased its stake in the Bruce Power A units and will invest in the $4.25-billion restart and refurbishment program.
TransCanada's network of about 41,000 kilometres of pipeline transports most of Western Canada's natural gas production to key Canadian and U.S. markets.
TransCanada also owns, or has interests in, about 6,000 megawatts of power generation in Canada and the United States. |
