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Growth Projects Drove TransCanada’s Strong Q3 Results


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.

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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.


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