TransCanada Reports First Quarter 2017 Financial Results; Strong Results Build Upon Transformational 2016
TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) today announced net income attributable to common shares for first quarter 2017 of $643 million or $0.74 per share compared to net income of $252 million or $0.36 per share for the same period in 2016. Comparable earnings for first quarter 2017 were $698 million or $0.81 per share compared to $494 million or $0.70 per share for the same period in 2016. TransCanada's Board of Directors also declared a quarterly dividend of $0.625 per common share for the quarter ending June 30, 2017, equivalent to $2.50 per common share on an annualized basis.
"We generated record first quarter financial results, excluding specific items," said Russ Girling, TransCanada's president and chief executive officer. "Comparable earnings per share increased 16 per cent compared to first quarter 2016 primarily due to strong performance across our Natural Gas Pipelines business, including Columbia which was acquired in mid-2016, while net cash provided by operations reached $1.3 billion."
"Today we are advancing a $23 billion near-term capital program that is expected to generate significant growth in earnings and cash flow and support an expected annual dividend growth rate at the upper end of an eight to 10 per cent range through 2020," added Girling. "To date we have invested $7.5 billion in these projects and are well positioned to both execute and fund the remainder of the program over the next few years. In addition, we concluded the purchase of Columbia Pipeline Partners LP which results in 100 per cent ownership in the core Columbia assets and further simplifies our corporate structure."
"We also continue to progress a number of additional medium to longer-term organic growth opportunities in our three core businesses of natural gas pipelines, liquids pipelines and energy in Canada, the United States and Mexico. Those include Keystone XL and the Bruce Power life extension agreement. During the first quarter, we were very pleased to receive a U.S. Presidential Permit for Keystone XL and are now in the process of seeking regulatory approval in Nebraska while progressing commercial discussions with our customers. Success in advancing these or other growth initiatives could augment or extend the Company's dividend growth outlook through 2020 and beyond," concluded Girling.
(All financial figures are unaudited and in Canadian dollars unless noted otherwise)
Net income attributable to common shares increased by $391 million to $643 million or $0.74 per share for the three months ended March 31, 2017 compared to the same period last year. Net income per common share in 2017 includes the dilutive effect of issuing 161 million common shares in 2016. First quarter 2017 included a charge of $24 million after-tax for integration-related costs associated with the acquisition of Columbia, a $10 million after-tax charge for costs related to the monetization of our U.S. Northeast power business, a $7 million after-tax charge related to the maintenance of Keystone XL assets and a $7 million income tax recovery related to the realized loss on a third party sale of Keystone XL project assets. First quarter 2016 results included a $176 million after-tax impairment charge on the carrying value of our Alberta PPAs, a $26 million after-tax charge relating to costs associated with the acquisition of Columbia, a $6 million after-tax charge related to Keystone XL costs for the maintenance and liquidation of project assets and a $3 million after-tax loss on the sale of TC Offshore which closed in March 2016. All of these specific items plus risk management activities are excluded from comparable earnings.
Comparable earnings for first quarter 2017 were $698 million or $0.81 per share compared to $494 million or $0.70 per share for the same period in 2016, an increase of $204 million or $0.11 per share and includes the dilutive effect of issuing 161 million common shares in 2016. The 2017 increase in comparable earnings was primarily due to the net effect of higher contributions from U.S. Natural Gas Pipelines primarily due to incremental earnings from Columbia following the July 1, 2016 acquisition and higher ANR transportation revenues resulting from higher rates effective August 1, 2016, a higher contribution from Mexican Natural Gas Pipelines due to incremental earnings from the Mazatlán and Topolobampo pipelines, higher earnings primarily from U.S. Power due to depreciation no longer being recorded effective November 1, 2016 on these assets along with higher realized power prices and higher earnings from Western Power following the termination of the Alberta PPAs in 2016. These increases were partially offset by higher interest expense as a result of debt assumed in the Columbia acquisition and long-term debt issuances and lower earnings from Bruce Power mainly due to lower gains from contracting activities and higher interest expense partially offset by higher volumes resulting from fewer outage days.
Notable recent developments include:
Natural Gas Pipelines:
We will hold a teleconference and webcast on Friday, May 5, 2017 to discuss our first quarter 2017 financial results. Russ Girling, TransCanada President and Chief Executive Officer, and Don Marchand, Executive Vice-President and Chief Financial Officer, along with other members of the TransCanada executive leadership team, will discuss the financial results and Company developments at 12:30 p.m. (MT) / 2:30 p.m. (ET).
Members of the investment community and other interested parties are invited to participate by calling 800.408.3053 or 905.694.9451 (Toronto area). Please dial in 10 minutes prior to the start of the call. No pass code is required. A live webcast of the teleconference will be available at www.transcanada.com.
A replay of the teleconference will be available two hours after the conclusion of the call until midnight (ET) on May 12, 2017. Please call 800.408.3053 or 905.694.9451 (Toronto area) and enter pass code 8663009.
The unaudited interim condensed Consolidated Financial Statements and Management's Discussion and Analysis (MD&A) are available under TransCanada's profile on SEDAR at www.sedar.com, with the U.S. Securities and Exchange Commission on EDGAR at www.sec.gov/info/edgar.shtml and on the TransCanada website at www.transcanada.com.
With more than 65 years' experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas and liquids pipelines, power generation and gas storage facilities. TransCanada operates a network of natural gas pipelines that extends more than 91,500 kilometres (56,900 miles), tapping into virtually all major gas supply basins in North America.
TransCanada is the continent's largest provider of gas storage and related services with 653 billion cubic feet of storage capacity. A large independent power producer, TransCanada owns or has interests in over 10,100 megawatts of power generation in Canada and the United States. TransCanada is also the developer and operator of one of North America's leading liquids pipeline systems that extends over 4,300 kilometres (2,700 miles) connecting growing continental oil supplies to key markets and refineries. TransCanada's common shares trade on the Toronto and New York stock exchanges under the symbol TRP. Visit TransCanada.com and our blog to learn more, or connect with us on social media and 3BL Media.
SOURCE: TransCanada Corporation
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.