TransCanada Corp. reported net income for fourth quarter 2008 of C$277 million, 47 cents/share, compared to C$377 million, 70 cents/share, for fourth quarter 2007. The results reflect tax benefits and land sale proceeds in the 2007 period. Earnings for 2008 were C$1.3 billion, C$2.25/share, an increase of about 8% compared to 2007. The company increased its quarterly dividend 6% to 38 cents/share.

“TransCanada’s financial performance in 2008 demonstrates our ability to generate significant earnings and cash flow even in these uncertain economic times,” said CEO Hal Kvisle.

Net income in fourth quarter 2007 included C$56 million of favorable income tax adjustments and a C$14 million gain on the sale of land. Fourth quarter 2008 and 2007 included C$6 million and C$10 million, respectively, of fair value gains in the company’s gas storage business. Earnings were C$271 million, 46 cents/share, for fourth quarter 2008 compared to C$297 million, 55 cents/share, in fourth quarter 2007.

Prior to an earnings conference call scheduled for Tuesday afternoon, TransCanada provided an update on operations. In November subsidiary ANR’s Cold Springs 1 gas storage facility entered service, adding 14 Bcf of storage capacity and 200 MMcf/d of withdrawal capacity. It increased ANR’s total storage capacity to 250 Bcf.

The company’s Bison Pipeline project from the Powder River Basin in Wyoming to the Northern Border system in North Dakota has shipping commitments for approximately 405 MMcf/d and is expected to be in service in fourth quarter 2010 (see Daily GPI, May 13, 2008).

In December the Alaska Commissioner of Revenue and Natural Resources issued the Alaska Gasline Inducement Act license to TransCanada for development of a natural gas pipeline to tap North Slope reserves and carry them to the Lower 48. The company has begun the engineering, environmental, field and commercial work and expects to conclude an open season by mid-2010 (see Daily GPI, Jan. 28).

TransCanada recently concluded a binding open season for gas transmission service from the Montney Groundbirch area in northeastern British Columbia (see Daily GPI, Dec. 15, 2008). Shippers have committed to firm contracts, and volumes associated with these commitments are expected to reach 1.1 Bcf/d by 2014. The company is finalizing details of a binding open season and pipeline extension project to service the Horn River shale gas area in northeastern British Columbia with the company’s Alberta System.

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