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TransCanada Q2 profit falls 14% to $365 million as it absorbs Columbia Pipeline

Last Updated Jul 28, 2016 at 8:26 am MDT

CALGARY – TransCanada Corporation (TSX:TRP) says this year’s second-quarter earnings were down nearly 14 per cent from last year, largely because of the cost associated with its US$13-billion acquisition of an American pipeline company.

The Calgary-based company says it had $365 million of net income, or 52 cents per share for the quarter.

That’s down from $429 million, or 60 cents per share, a year earlier.

Revenue was up 4.6 per cent to $2.75 billion, from $2.63 billion.

In addition to its network of pipelines, TransCanada provides power generation in Canada and the United States as well as natural gas storage.

The acquisition of Columbia Pipeline Group — announced in March and closed on July 1 — adds a 24,000-kilometre pipeline network that stretches from New York to the Gulf of Mexico.

The second quarter included a onetime US$113-million charge related to a payment in lieu of dividends to Columbia shareholders before the transaction closed.

“The Columbia assets are very complementary to our existing business and we expect significant synergies and growth in the years to come,” TransCanada chief executive Russ Girling said in the earnings announcement.