uploads///featured image

Growth Projects Drove TransCanada’s Strong Q3 Results

By

Nov. 20 2020, Updated 1:10 p.m. ET

TransCanada’s third-quarter results

TransCanada (TRP) reported its third-quarter results on November 1. The company reported comparable earnings of 902 million Canadian dollars—compared to 614 million Canadian dollars in the third quarter of 2017. Contributions from new projects, a strong performance on existing assets, and the US tax reform’s positive impact contributed to TransCanada’s earnings growth for the quarter. The stock rose 3% on November 1.

TransCanada’s U.S. Natural Gas Pipelines segment’s third-quarter earnings grew due to new projects placed in-service. The company’s Liquids Pipelines segment’s earnings grew due to new projects, higher earnings from liquids marketing activity, and higher volumes on the Keystone pipeline.

Article continues below advertisement

TransCanada has fallen in 2018

So far, TransCanada has fallen ~21% in 2018—in-line with Enbridge (ENB). In comparison, the Energy Select Sector SPDR ETF (XLE) has fallen ~8% year-to-date. Kinder Morgan (KMI) has fallen 9%, while ONEOK (OKE) has risen ~19% during the same period.

TransCanada issued 20 million shares under its at-the-market equity program in the nine months ending on September 30.

Growth projects

“With our existing asset portfolio benefiting from strong underlying market fundamentals and approximately $36 billion of secured growth projects underway including Coastal GasLink, NGTL’s 2022 expansion program and Bruce Power’s Unit 6 refurbishment, earnings and cash flow are forecast to continue to rise,” said Russ Girling, TransCanada’s president and CEO.

TransCanada declared a dividend of 0.69 Canadian dollars per share for the quarter ending on December 31. TransCanada expects annual dividend growth of 8%–10% through 2021.

For the latest earnings coverage on the energy sector, visit Market Realist’s Energy and Power page.

Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.