TransCanada Posts Hefty Loss on Keystone Charge
12 February 2016 - 2:01AM
Dow Jones News
By Judy McKinnon
TransCanada Corp. on Thursday posted a hefty quarterly loss on
the back of an expected charge related to its denied Keystone XL
pipeline project, though operating results still came in ahead of
expectations and the company raised its dividend.
Calgary, Alberta-based TransCanada, which is taking legal action
against the Obama administration over its refusal to issue a
cross-border permit for Keystone XL, booked a 2.9 billion Canadian
dollar ($2.1 billion) impairment charge for the canceled project.
The amount is the top end of what TransCanada guided for following
the U.S. government's permit refusal in November.
"While we were extremely disappointed by the denial of a
Presidential Permit for Keystone XL," said Chief Executive Russ
Girling, "we are well positioned to continue to grow earnings and
cash flow in the years ahead."
TransCanada posted an overall fourth-quarter loss of C$2.44
billion, or C$3.47 a share, compared with a year-earlier profit of
C$483 million, or 65 Canadian cents a share.
Adjusted to exclude items, earnings came in at C$453 million, or
64 Canadian cents a share. That is down about 11% from year-earlier
results, but ahead of the 61 Canadian cents analysts polled by
Thomson Reuters expected.
Revenue for the quarter improved to C$2.85 billion from C$2.62
billion.
The company said it is planning C$13 billion of "near-term
growth opportunities," which it expects will be in service by 2018.
It also said it continues to expects its dividend to increase at an
average annual rate of 8% to 10% through 2020.
TransCanada increased its quarterly dividend by 9%, to a new
payout level of 56.5 Canadian cents a share. The company
consistently raises its dividend on an annual basis.
Write to Judy McKinnon at judy.mckinnon@wsj.com
(END) Dow Jones Newswires
February 11, 2016 09:46 ET (14:46 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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