Kinder Morgan Canada sees 45% drop in Q2 earnings as Trans Mountain deal progresses
Calgary company expects $4.5B deal with Ottawa to close later this year
Kinder Morgan says the $4.5 billion deal to sell Trans Mountain pipeline assets to the federal government is progressing well.
"We are laser-focused right now on closing this transaction, and that process is going well," said Kinder Morgan CEO Steven Kean on an earnings call Wednesday.
The company reached a deal with the Trudeau government in late May to sell the existing Trans Mountain pipeline running from the Edmonton to the Vancouver area, as well as the controversial expansion project that will nearly triple the line's capacity.
Kinder Morgan said it expects the deal to close late in the third quarter or early in the fourth quarter this year, subject to approval by shareholders and regulators, while the federal government said in announcing the deal that it expects it to close in August.
The pending sale of the pipeline helped push down Kinder Morgan Canada's net income, which came in at $13.7 million in the second quarter compared to $25.1 million for the same quarter last year.
The company said net income was reduced primarily because of the non-cash write-off of capitalized credit facility fees, which were replaced by temporary credit facilities because of the pending sale.
Net income for restricting voting stockholders came in at $1.8 million or two cents per share, compared to $4.2 million or 11 cents per share for the same period last year.
Total revenue for the quarter came in at $178 million for the quarter, compared to $168.7 million for the same quarter last year.
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