(RTTNews) - TransCanada Corporation (TRP: News ,TRP.TO: News ), a major North American natural gas pipeline operator, said Wednesday that third-quarter profit declined from last year, reflecting weakness in its energy segment, primarily due to lower power prices and volumes sold in Western Power and reduced generation volumes from New England and Bruce Power.

For the third quarter, the Calgary, Alberta-based company's net earnings were C$345 million compared with C$390 million in the prior-year quarter. On a per share basis, earnings declined to C$0.50 from C$0.67, reflecting an 18% increase in average number of shares outstanding, following TransCanada's issuance of 58.4 million and 35.1 million common shares in second quarter 2009 and fourth quarter 2008, respectively.

TransCanada used the proceeds from the offerings to fund acquisition of additional interests in Keystone and for other capital projects, general corporate purposes and to repay short-term debt.

Comparable earnings for the quarter were C$335 million, or C$0.49 per share compared to C$366 million or C$0.63 per common share last year.

On an average, three analysts polled by Thomson Reuters expected the company to earn $0.46 per share for the quarter. Analysts' estimates typically exclude special items.

In the third quarter of fiscal 2009 and 2008, comparable earnings excluded C$10 million of after tax net unrealized gains and C$2 million of after tax net unrealized losses, respectively, impacted by changes in fair value of proprietary natural gas inventory in storage and natural gas forward purchase and sale contracts. Comparable earnings in 2008 also excluded favorable income tax adjustments totaling C$26 million.
Revenues for the third quarter rose to C$2.25 billion from C$2.14 billion in the third quarter of fiscal 2008. TransCanada reports its results in three sections: Pipelines, Energy and Corporate.

In the pipelines segment, revenues for the quarter were C$1.15 billion versus C$1.14 billion in the prior year. Pipelines segment's comparable earnings before interest and tax, or EBIT, was C$475 million versus C$469 million in the same period in 2008.

In the energy segment, revenues rose to C$1.10 billion from C$996 million in the 2008-year period. Energy's comparable EBIT in the quarter was C$204 million compared to C$302 million in the year-ago period. Within this segment, Western Power's earnings plunged, primarily due to lower earnings from Alberta power portfolio resulting from lower overall realized power prices on lower volumes of power sold. Western Power sales volumes declined to 541 GWh from 598 GWh last year.

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