UPDATE: TransCanada Down From Near Yr Highs On Lower Q2, Misses Target; Updates on Gulf Coast Project; Declares Div
TransCanada Corporation (TRP.TO), with a year high $44.95, said net income attributable to common shares for second quarter 2012 was $272 million or $0.39 per share, lower than $353 million or $0.50 per share a year ago. Excluding an after-tax charge of C$37 million related to the Sundance A arbitration decision, net income attributable to common shares was $309 million or $0.44 per share compared to $353 million or $0.50 per share in the prior-year quarter.
Comparable earnings for the recent quarter were $300 million or $0.43 per share. Excluding an after-tax charge of $22 million related to the Sundance A PPA arbitration decision received in July, comparable earnings were $322 million or $0.46 per share compared to $355 million or $0.51 per share in the same period a year earlier. On average, 10 analysts polled by Thomson Reuters expected the company to report earnings of $0.48 per share. Analysts' estimates typically exclude special items.
TransCanada's Board of Directors also declared a quarterly dividend of $0.44 per common share for the quarter ending September 30, 2012, equivalent to $1.76 per common share on an annualized basis.
Over the next three years, TransCanada expects to complete $13 billion of projects that are currently in advanced stages of development. They include the restart of two reactors at Bruce Power, the Gulf Coast Project [it expects construction to begin this summer], Keystone XL, the Tamazunchale extension, Canadian Solar and the ongoing expansion of the Alberta System.
It said: "TransCanada also continues to advance various other large scale initiatives that will help shape the North American energy marketplace. They include the recently announced $4 billion Coastal GasLink Project that would move Canadian natural gas to Asian markets and various other initiatives in its three core businesses. TransCanada expects each of these projects to generate significant, sustained earnings and cash flow and deliver superior returns to its shareholders."
TransCanada announced it has now received the final of three key permits needed from the U.S. Army Corps of Engineers in order to advance the 485-mile (780-kilometre (km)) Gulf Coast Project. With the permit from the Fort Worth, Texas Army Corps district added to previously received permits from the Galveston, Texas and the Tulsa, Oklahoma districts, TransCanada is now in a position to start construction of the oil pipeline in the coming weeks.
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