TransCanada Corp. attributed a C$43 million (C$0.04/share) increase in second quarter earnings announced Friday over a year ago as primarily due to income from the acquisition of American Natural Resources Co. and ANR Storage Co. and the start-up of its Bécancour cogeneration facility. The company also recorded higher income due to a settlement on the Canadian Mainline approved by the National Energy Board (NEB).
The company reported comparable earnings for second quarter 2007 of C$241 million (C$0.45/share) compared to C$198 million (C$0.41/share) for the same period in 2006, an increase of approximately 10% on a per share basis. Net income for second quarter 2007 of C$257 million (C$0.48/share) compared to C$244 million (C$0.50/share) in second quarter 2006. Funds generated from operations for second quarter 2007 of C$596 million compared to C$539 million for the same period in 2006, an increase of approximately 11%.
Net income for the six months ended June 30 was C$522 million (C$1.00/share) compared to C$517 million (C$1.06/share) for the same period in 2006. Net income from continuing operations for the six months ended June 30 was C$522 million (C$1.00/share) compared to C$489 million (C$1.00/share) for the same period in 2006.
“We continue to advance our large portfolio of pipelines and energy projects,” said TransCanada CEO Hal Kvisle. “Significant milestones in the second quarter include commercial support for the Keystone Oil Pipeline expansion and extension and favorable decisions from the Québec and federal governments on the Cacouna Energy LNG project. We also made progress with the Portlands Energy Centre, Halton Hills Generating Station, Cartier Wind project and the Bruce Power restart and refurbishment project.”
TransCanada’s five-year settlement with interested stakeholders for years 2007 to 2011 on its Canadian Mainline was approved by the NEB in May 2007. The settlement reflects a cost of capital based on a rate of return on common equity determined by an NEB formula, on a deemed common equity ratio of 40%, an increase from 36%. The NEB also approved TransCanada’s request that interim tolls be made final for 2007.
In the second quarter TransCanada assumed operatorship at ANR, Great Lakes and Northern Border natural gas transmission systems and commenced physical natural gas deliveries at the Tamazunchale pipeline in east-central Mexico.
In other developments:
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