TransCanada Q4 Results Miss Estimates

(RTTNews) - Energy infrastructure company TransCanada Corp. (TRP.TO, TRP) reported Thursday a profit for the fourth quarter that increased from last year, reflecting higher income from equity investments and revenue growth. Both comparable earnings per share and quarterly revenues missed analysts' expectations.

The Calgary, Canada-based company reported net income of C$420 million or C$0.59 per share for the fourth quarter, higher than C$306 million or C$0.43 per share in the prior-year quarter.

Comparable earnings for the quarter was C$410 million or C$0.58 per share, compared to C$318 million or C$0.45 per share in the year-ago quarter.

The company noted that higher earnings from the Canadian Mainline, the NGTL System, Keystone, Bruce Power, U.S. Power, and Western Power were partially offset by lower contributions from U.S. Natural Gas Pipelines.

On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of C$0.59 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter grew to C$2.33 billion from C$2.09 billion in the same quarter last year, but missed four Wall Street analysts' consensus estimate of C$2.35 billion by a whisker.

Natural gas pipeline revenues for the quarter grew to C$1.23 billion from last year's C$1.09 billion, and oil pipelines revenue increased to C$294 million from C$270 million in the year-ago quarter. Energy revenues increased to C$812 million from C$732 million last year.

Income from equity investments surged to C$174 million from C$61 million in the prior-year quarter. Total operating and other expenses were C$1.58 billion, up from C$1.45 billion a year ago.

Funds generated from operations for quarter totaled C$1.08 billion, up from C$818 million in the prior-year quarter.

TransCanada's board also declared a four percent higher quarterly dividend of C$0.48 per share for the first quarter, payable on April 30 to shareholders of record at the close of business on March 31, 2014.

For fiscal 2013, the company reported net income of C$1.71 billion or C$2.42 per share, higher than C$1.30 billion or C$1.84 per share in the prior year. Comparable earnings for the year was C$1.58 billion or C$2.24 per share, compared to C$1.33 billion or C$1.89 per share in the year ago. Revenues for the full year grew to C$8.80 billion from C$8.01 billion in the previous year.

Analysts expected the company to report full-year 2013 earnings of C$2.26 per share on annual revenues of C$8.88 billion.

In Thursday's regular trading session, TRP is currently trading at $44.42, down $0.60 or 1.33% on a volume of 0.10 million shares. On the Toronto Stock Exchange, TRP.TO is trading at C$49.37, down C$0.531 or 1.06% on a volume of 0.18 million shares.