TransCanada profit slips despite higher revenue
TransCanada Corp , Canada's second-largest pipeline company, reported a better-than-expected quarterly profit, helped by higher earnings from its Keystone systems.
Earnings before interest, taxes, depreciation and amortization from TransCanada's Keystone pipeline system rose 32 per cent to $363 million in the third quarter, helped by higher uncontracted volumes and a stronger U.S. dollar.
The Calgary-based company asked the U.S. government on Monday to suspend review of the proposed Keystone XL pipeline, a move that was seen by many as an attempt to avert a rejection President Barack Obama and postpone the decision until after the November 2016 presidential election.
TransCanada, which has been cutting jobs, said on Tuesday it expected further restructuring initiatives in fourth quarter and into 2016. Net income attributable to the company fell 12 per cent to $402 million, or 57 Canadian cents per share, in the three months ended Sept. 30.
Comparable earnings were 62 Canadian cents per share, above average analyst estimate of 60 Canadian cents per share, according to Thomson Reuters I/B/E/S. Revenue rose 20.1 per cent to $2.94 billion, beating the average estimate of $2.67 billion.