TransCanada revenue tops estimates on strength in US pipelines
(Reuters) — TransCanada Corp reported better-than-expected quarterly revenue on Thursday, helped by performance in the company's US natural gas pipelines.
Revenue from the company's US natural gas pipelines unit rose to C$337 MM ($265.40 MM) in the third quarter ended Sept. 30, from C$332 MM a year earlier.
However, revenue in its Canadian natural gas pipelines fell 4% to C$316 MM.
TransCanada is trying to build its 830,000 bpd Keystone XL pipeline project as Canadian companies attempt new projects in the face of fierce environmental opposition and concerns about slowing oil sands growth.
The company said it would only decide in December whether to proceed with the project after gauging demand from oil shippers and is awaiting a decision from Nebraska's Public Service Commission.
Calgary-based TransCanada's revenue fell 10.7% to C$3.24 B, but beat analysts' estimate of C$3.18 B, according to Thomson Reuters.
Net income attributable to shareholders was C$612 MM ($482 MM), or 70 Canadian cents per share, in the quarter, compared with a loss of C$135 MM, or 17 Canadian cents per share, a year earlier.
The year-ago quarter included an after-tax goodwill impairment charge of C$656 MM.
Excluding items, the company earned 70 Canadian cents per share, in-line with analysts' average estimate.
Reporting by Anirban Paul in Bengaluru; Editing by Maju Samuel and Sriraj Kalluvila
The ongoing development of shale gas resources in the US has spurred infrastructure construction for both natural gas processing capacity and LNG export terminals.
Russian natural gas monopoly Gazprom is strengthening its presence in the gas market of the Middle East through the planned construction of an 11-metric-MMtpy–12-metric-MMtpy LNG plant in Iran.
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