PIPELINES / TransCanada Pipelines Ltd. 1997 Earnings (Part 2)
TRANSCANADA PIPELINES LIMITED
CONSOLIDATED INCOME
Three months ended Year ended
December 31 December 31
(millions of dollars except (unaudited)
per share amounts) 1997 1996 1997 1996
-------------------------------------------------------------------------
Revenues 3,878.7 3,197.0 14,242.8 10,790.6
-------- -------- -------- --------
Cost of Sales 3,071.1 2,473.8 11,157.0 8,063.5
Other Costs and Expenses 403.4 310.5 1,433.6 1,059.1
Depreciation 111.0 101.7 424.8 380.8
-------- -------- -------- --------
3,585.5 2,886.0 13,015.4 9,503.4
-------- -------- -------- --------
Operating Income 293.2 311.0 1,227.4 1,287.2
-------- -------- -------- --------
Other Expense/(Income)
Financial charges 149.2 140.3 567.6 553.1
Financial charges of
joint ventures 26.7 22.0 97.5 91.2
Allowance for funds used
during construction (8.4) (2.2) (27.4) (18.6)
Interest and other income (12.0) (3.9) (28.6) (18.0)
-------- -------- -------- --------
155.5 156.2 609.1 607.7
-------- -------- -------- --------
Income before Income Taxes 137.7 154.8 618.3 679.5
Income Taxes - Current
and Deferred 24.4 41.8 161.3 254.5
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Net Income 113.3 113.0 457.0 425.0
Preferred Securities Charges 3.7 1.9 13.1 1.9
Preferred Share Dividends 9.1 9.1 36.3 37.9
-------- -------- -------- --------
Net Income Applicable
to Common Shares 100.5 102.0 407.6 385.2
-------- -------- -------- --------
-------- -------- -------- --------
Net Income Per Share $0.45 $0.48 $1.85 $1.85
-------- -------- -------- --------
-------- -------- -------- --------
Average Shares Outstanding
(millions) 220.2 208.5
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-------- --------
See accompanying Note to Summarized Consolidated Financial Statements.
TRANSCANADA PIPELINES LIMITED
CONSOLIDATED CHANGES IN FINANCIAL POSITION
For the year ended December 31
(millions of dollars) 1997 1996
-------------------------------------------------------------------------
Cash Generated from Operations
Funds generated from operations 876.2 831.0
Increase in operating working capital (251.4) (62.4)
-------- --------
624.8 768.6
-------- --------
Investing Activities
Capital expenditures
Energy transmission (1,413.4) (1,034.3)
Energy processing (169.9) (158.8)
International (81.8) (97.9)
Energy marketing and corporate (28.8) (3.2)
Acquisitions, net of cash acquired (226.9) (358.1)
Deferred amounts and other (34.6) 69.3
-------- --------
(1,955.4) (1,583.0)
-------- --------
Financing Activities
Dividends and preferred securities charges (310.3) (267.2)
Notes payable issued, net 441.5 59.2
Long-term debt issued 1,106.8 887.5
Reduction of long-term debt (274.2) (358.0)
Non-recourse debt of joint ventures issued 109.0 5.1
Reduction of non-recourse debt of
joint ventures (125.2) (56.3)
Partnership units issued by a subsidiary 219.0 -
Settlement of convertible debentures - (150.0)
Junior subordinated debentures issued - 217.5
Preferred securities issued - 257.3
Preferred shares redeemed - (150.0)
Common shares issued 116.0 313.5
-------- --------
1,282.6 758.6
-------- --------
Decrease in Cash and Short-Term Investments (48.0) (55.8)
Cash and Short-Term Investments
- at beginning of year 163.2 219.0
-------- --------
Cash and Short-Term Investments
- at end of year 115.2 163.2
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-------- --------
See accompanying Note to Summarized Consolidated Financial Statements.
TRANSCANADA PIPELINES LIMITED
CONSOLIDATED FINANCIAL POSITION
December 31 (millions of dollars) 1997 1996
-------------------------------------------------------------------------
Current Assets
Cash and short-term investments 115.2 163.2
Accounts receivable 1,513.4 1,302.3
Inventories 352.5 222.0
Other 34.2 12.6
-------- --------
2,015.3 1,700.1
-------- --------
Long-Term Investments 274.8 171.2
-------- --------
Plant, Property and Equipment
Energy transmission 10,671.4 9,598.9
Energy processing 1,282.1 1,022.8
Energy marketing, international
and corporate 119.4 68.4
-------- --------
12,072.9 10,690.1
-------- --------
Other Assets 208.6 88.1
-------- --------
14,571.6 12,649.5
-------- --------
-------- --------
Current Liabilities
Notes payable 668.0 226.5
Accounts payable 1,626.4 1,531.6
Long-term debt due within one year 282.3 273.1
Non-recourse debt of joint ventures
due within one year 51.0 51.1
-------- --------
2,627.7 2,082.3
-------- --------
Deferred Amounts 113.1 34.1
-------- --------
Long-Term Debt 6,020.6 5,148.2
-------- --------
Non-Recourse Debt of Joint Ventures 982.8 964.6
-------- --------
Deferred Income Taxes 232.5 203.5
-------- --------
Junior Subordinated Debentures 223.9 223.2
-------- --------
Non-Controlling Interests 96.1 -
-------- --------
Shareholders' Equity
Preferred securities 280.0 261.1
Preferred shares 512.6 512.6
Common 3,482.3 3,219.9
-------- --------
4,274.9 3,993.6
-------- --------
14,571.6 12,649.5
-------- --------
-------- --------
See accompanying Note to Summarized Consolidated Financial Statements.
TRANSCANADA PIPELINES LIMITED
NOTE TO SUMMARIZED CONSOLIDATED FINANCIAL STATEMENTS
SEGMENTED INFORMATION
Three months ended Year ended
December 31 December 31
(unaudited)
(millions of dollars) 1997 1996 1997 1996
-------------------------------------------------------------------------
Energy Transmission
Revenues 657.4 554.9 2,454.5 2,217.9
Costs and expenses (291.7) (196.7) (1,046.2) (761.3)
Depreciation (93.7) (80.0) (354.9) (324.8)
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Operating income 272.0 278.2 1,053.4 1,131.8
Financial charges and other (142.7) (147.7) (551.1) (571.6)
Income taxes (28.3) (35.2) (132.1) (198.7)
Preferred share dividends (9.1) (9.1) (36.3) (37.9)
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Net income applicable to
common shares 91.9 86.2 333.9 323.6
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Energy Marketing
Revenues 3,038.3 2,471.1 11,084.0 8,070.1
Cost of sales (3,015.2) (2,430.3) (10,947.0) (7,899.4)
Other costs and expenses (30.9) (37.6) (102.9) (110.1)
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Operating income/(loss) (7.8) 3.2 34.1 60.6
Financial charges and other (0.9) (1.5) (9.6) (6.3)
Income taxes 2.0 (1.6) (16.9) (26.4)
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Net income/(loss) applicable to
common shares (6.7) 0.1 7.6 27.9
------- ------- ------- -------
Energy Processing
Revenues 173.2 168.0 678.4 493.6
Cost of sales (55.9) (43.5) (210.0) (164.1)
Other costs and expenses (70.7) (67.0) (257.6) (168.5)
Depreciation (14.2) (21.3) (63.3) (52.2)
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Operating income 32.4 36.2 147.5 108.8
Financial charges and other (11.7) (11.0) (41.8) (33.5)
Income taxes (7.9) (10.6) (44.3) (33.7)
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Net income applicable to
common shares 12.8 14.6 61.4 41.6
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International
Revenues 9.8 3.0 25.9 9.0
Costs and expenses (13.2) (9.6) (33.5) (23.0)
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Operating loss (3.4) (6.6) (7.6) (14.0)
Other income and expenses 1.5 0.3 2.0 0.9
Income taxes 4.2 4.1 11.9 7.9
------- ------- ------- -------
Net income/(loss) applicable to
common shares 2.3 (2.2) 6.3 (5.2)
------- ------- ------- -------
Unallocated Amounts
Financial charges and other 0.2 3.3 (1.6) (2.7)
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Net Income Applicable to Common
Shares 100.5 102.0 407.6 385.2
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CORPORATE PROFILE
TransCanada PipeLines Limited, a Canadian company with assets in excess
of $14 billion, transmits, markets and processes energy for customers in
Canada, throughout North America, and around the world. Its pipeline system
transmits energy from the Western Canadian Sedimentary Basin to the
continent's major energy markets. Additional activities in energy marketing
and energy processing extend the Company's reach. Internationally, TransCanada
pursues, evaluates and invests in energy-related opportunities that expand the
scope of its current activities.
STOCK EXCHANGES
The common and preferred shares of TransCanada are listed on the Toronto,
Montr‚al, Vancouver, Alberta and Winnipeg stock exchanges in Canada. The
common shares are also listed on the New York Stock Exchange.
Common Share Price Range
Toronto Stock Exchange
High Low
--------------------------------------------------------------
Fiscal 1996 $24.50 $18.63
First Quarter 1997 $26.85 $22.90
Second Quarter 1997 $28.40 $24.10
Third Quarter 1997 $28.35 $25.75
Fourth Quarter 1997 $32.25 $25.60
New York Stock Exchange
(US dollars) High Low
--------------------------------------------------------------
Fiscal 1996 $18.13 $13.63
First Quarter 1997 $19.63 $16.75
Second Quarter 1997 $20.38 $17.38
Third Quarter 1997 $20.63 $18.63
Fourth Quarter 1997 $22.56 $18.13 |
