The company behind the controversial Keystone XL pipeline proposal, TransCanada Corp., says it had a $2.5-billion net loss in the fourth quarter — mostly because of the stalled project.

The Calgary-based company says it recognized a $2.9-billion non-cash expense related to the impaired value of Keystone XL — which has been blocked by U.S. President Barack Obama.

The net loss also included a number of other smaller items, partially offset by an increase in revenue to $2.85 billion from $2.62 billion.

The net loss didn't prevent TransCanada from announcing a dividend increase for the 16th year in a row.

The quarterly payout to shareholders will increase to 56.5 cents per common share, or $2.26 annually, up nine per cent.

TransCanada's "comparable earnings" without the writedowns fell to $453 million or 64 cents per share — down from $511 million or 72 cents per share — mainly because of lower contributions from its Canadian power and pipeline businesses.

In addition to operating one of North America's largest networks of oil and gas pipelines, TransCanada is part owner of the Bruce Power nuclear electricity business in Ontario as well as other power generating operations.