According to second quarter financial reports from Canadian pipeline company TransCanada, the Calgary-based company’s profits fell by 11 per cent, but the results beat analysts’ expectations. Company photo.
TransCanada profits down by 11 per cent
In its second quarter financials released on Thursday, TransCanada reports that its Q2 profits were down by 11 per cent.
Net income attributable to common shareholders was $785 million, or 88 cents per share. This is down from $881 million, or $1.01 per share during Q2 2017.
According to the Calgary-based company, the second quarter included an $11 million after-tax loss due to the winding down of US Northeast power marketing contracts.
Second quarter revenue was $3.2 billion, close to last year.
Excluding that impact and adjusting for other items, TransCanada Q2 earnings were 86 cents per share, up from 76 cents per share in the second quarter of last year.
This is higher than analysts expectations of just 75 cents per share, according to Thomson Reuters Eikon. TransCanada results in 2018 include projects that recently went online and US tax reform.
TransCanada says its expects earnings and cash flow to continue to increase with more new projects going into service, strong market fundamentals and maintenance capital spending advancing as scheduled.
The company declared a dividend of 69 cents per share. It says it forecasts annual dividend growth to be between eight to 10 per cent in the coming few years.
The company also announced that it will sell its Cartier Wind power facilities in Québec for about $630 million to Innergex Renewable Energy Inc. The sale is expected to close in the fourth quarter of this year.