(RTTNews) - Friday, TC PipeLines LP (TCLP: News ) reported a lower profit for the third quarter, reflecting lower equity income from Northern Border Pipeline Company.

The Omaha, Nebraska-based company's third quarter net income dropped to $27.4 million from $28.3 million last year. The net income for the prior year period excludes a $4.7 million contribution from North Baja Pipeline, LLC prior to acquisition.

Net income attributable to common shareholders for the quarter rose to $26.8 million from $25.1 million a year-ago, reflecting a lower allocation to general partner. On per share basis, the net profit declined to $0.65 million from $0.72 a year-ago, reflecting a higher share count.

On July 1, 2009, the company acquired North Baja from a wholly owned subsidiary of TransCanada Corp. (TRP: News ). Including North Baja's results for both the periods, the company's net income prior to recast dropped to $27.4 million from $33.0 million for the prior year period.

Net income per common unit for the quarter was $0.65 per share, lower than $0.72 per share last year.

On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.52 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly transmission revenues rose to $17.5 million from $8.2 million for the same period last year, reflecting the revenues from North Baja.
While, equity income from investment in Northern Border dropped to $10.5 million from $19.9 million for the same period last year, equity income from investment in Great Lakes rose to $13.2 million from $12.0 million a year earlier.

The drop in income from Northern Border was mainly due to gain on sale of Bison in 2008, the company said. The increase in income from Great Lakes was due to increased transmission revenues.

On November 3, Great Lakes and its largest shipper, TransCanada renewed contracts for one year for 470 thousand dekatherms per day or MDth/d of capacity, some of which at a slightly discounted rate, and agreed to provide other transportation services.

For the nine-month period, the company's net income prior to recast dropped to $72.9 million from $81.1 million last year. Net income attributable to common shareholders for the period rose to $66.1 million from $71.7 million a year-ago. On per share basis, the net profit was dropped to $1.78 million from $2.96 million for the year earlier period. Including North Baja's results for both the periods, net income was $81.2 million, down from $93.9 million in the prior year period.

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