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TransCanada Q4 Results Miss Estimates On Plant Outages


Energy infrastructure company TransCanada Corp. (TRP.TO,TRP) reported Tuesday a profit for the fourth quarter that declined from last year, hurt by the continued plant outages at Bruce Power and Sundance A along with lower income from equity investments. Comparable earnings per share missed analysts' expectations by four cents, while quarterly revenues also came in just below their estimates.

The Calgary, Canada-based company reported net income of C$306 million or C$0.43 per share for the fourth quarter, lower than C$376 million or C$0.53 per share in the prior-year quarter. Comparable earnings for the quarter was C$318 million or C$0.45 per share, compared to C$365 million or C$0.52 per share in the year-ago quarter.

On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of C$0.49 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter grew to C$2.09 billion from C$2.02 billion in the same quarter last year, while four Wall Street analysts had a consensus revenue estimate of C$2.15 billion.

Income from equity investments declined to $61 million from $87 million last year. Total operating and other expenses grew to $1.45 billion from $1.35 billion in the year-ago quarter.

TransCanada's board also declared a 5 percent higher quarterly dividend of C$0.46 per share for the first quarter, payable on April 30 to shareholders of record at the close of business on March 29, 2013.

TransCanada noted that it was selected to develop a proposed $5 billion pipeline that would transport natural gas to the recently announced Pacific Northwest LNG export facility near Prince Rupert, British Columbia.

For fiscal 2012, the company reported net income of C$1.30 billion or C$1.84 per share, lower than C$1.53 billion or C$2.17 per share in the prior year. Comparable earnings for the year was C$1.33 billion or C$1.89 per share, compared to C$1.56 billion or C$2.22 per share in the year ago. Revenues for the full year grew to C$8.01 billion from C$7.84 billion in the previous year.

Street was looking for full-year 2012 earnings of C$1.94 per share on annual revenues of C$7.98 billion.

"Looking forward, TransCanada is well positioned to grow sustainable earnings, cash flow and dividends as we complete our current capital program, benefit from an anticipated recovery in natural gas and power prices and execute on our significant portfolio of secured new growth opportunities," President and CEO Russ Girling said.

The company noted that over the next three years, subject to required approvals, it expects to complete $12 billion of projects that are currently in advanced stages of development.

In Tuesday's regular trading session, TRP is currently trading at $47.93, down $0.23 or 0.47% on a volume of 29,552 shares. On the Toronto Stock Exchange, TRP.TO is trading at C$48.09, down C$0.16 or 0.33% on a volume of 56,333 shares.

by RTTNews Staff Writer

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