TransCanada Reports Fourth Quarter and Year-End 2015 Financial Results

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TransCanada Reports Fourth Quarter and Year-End 2015 Financial Results

by pmnationtalk on February 11, 2016343 Views

CALGARY, ALBERTA–(Feb. 11, 2016) – TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) today announced a net loss attributable to common shares for fourth quarter 2015 of $2.5 billion or $3.47 per share compared to net income of $458 million or $0.65 per share for the same period in 2014. For the year ended December 31, 2015, the net loss attributable to common shares was $1.2 billion or $1.75 per share compared to net income of $1.7 billion or $2.46 per share in 2014. Comparable earnings for fourth quarter 2015 were $453 million or $0.64 per share compared to $511 million or $0.72 per share for the same period last year. For the year ended December 31, 2015, comparable earnings were $1.8 billion or $2.48 per share compared to $1.7 billion or $2.42 per share in 2014. TransCanada’s Board of Directors also declared a quarterly dividend of $0.565 per common share for the quarter ending March 31, 2016, equivalent to $2.26 per common share on an annualized basis, an increase of nine per cent. This is the sixteenth consecutive year the Board of Directors has raised the dividend.

“Although 2015 was a very challenging year for the energy industry, our $64 billion portfolio of high-quality energy infrastructure assets performed well,” said Russ Girling, TransCanada’s president and chief executive officer. “Excluding specific items, comparable earnings and funds generated from operations reached record levels while we continued to safely and reliably meet the needs of our customers across North America.”

While we were extremely disappointed by the denial of a Presidential Permit for Keystone XL and the resulting $2.9 billion after-tax non-cash impairment charge, we are well positioned to continue to grow earnings and cash flow in the years ahead. Our assets are largely underpinned by cost of service regulated business models or long-term contracts with solid counterparties resulting in highly predictable cash flow streams with minimal commodity or volume throughput risk. In addition, we are proceeding with $13 billion of near-term growth opportunities that are expected to be in-service by 2018. Over the medium to longer-term we are advancing $45 billion of commercially secured, large-scale projects and various other initiatives that will create significant additional shareholder value.

“Based on the confidence we have in our future outlook, we recently repurchased 7.1 million common shares and are pleased to announce a nine per cent increase in the common share dividend,” added Girling. “Building upon the resiliency of our base business, our visible, near-term growth and our financial strength, our common share dividend is expected to rise at an average annual rate of eight to ten per cent through 2020. Success in advancing additional initiatives could further extend and augment future dividend growth.”

Fourth Quarter and Year-End Highlights

(All financial figures are unaudited and in Canadian dollars unless noted otherwise)

  • Fourth quarter 2015 financial results:
    • Net loss attributable to common shares of $2.5 billion or $3.47 per share
    • Comparable earnings of $453 million or $0.64 per share
    • Comparable earnings before interest, taxes, depreciation and amortization (EBITDA) of $1.5 billion
    • Funds generated from operations of $1.2 billion
    • Comparable distributable cash flow of $778 million or $1.10 per share
  • For the year ended December 31, 2015:
    • Net loss attributable to common shares of $1.2 billion or $1.75 per share
    • Comparable earnings of $1.8 billion or $2.48 per share
    • Comparable EBITDA of $5.9 billion
    • Funds generated from operations of $4.5 billion
    • Comparable distributable cash flow of $3.5 billion or $5.00 per share
  • Announced an increase in the quarterly common share dividend of nine per cent to $0.565 per common share for the quarter ending March 31, 2016
  • Filed a normal course issuer bid to allow for the repurchase of up to 21.3 million common shares by November 22, 2016 and repurchased 7.1 million common shares for $307 million under this program as of February 10, 2016
  • Acquired an additional interest in Bruce Power for $236 million, bringing our interest to 48.5 per cent
  • Announced the Bruce Power Life Extension Agreement that will extend the operating life of the facility to 2064. TransCanada’s estimated share of the capital investment over the life of the agreement is $6.5 billion (2014 dollars)
  • Awarded a contract to build the US$500 million Tuxpan-Tula Pipeline in Mexico
  • Announced the NGTL System reached a two-year revenue agreement with customers for 2016-2017 and signed contracts that will require a further expansion of approximately $600 million for 2018
  • Sold a 49.9 per cent interest in Portland Natural Gas Transmission System (PNGTS) to TC PipeLines, LP for US$223 million
  • Amended the application to the National Energy Board (NEB) for the Energy East Pipeline to reflect an adjusted route, schedule and capital cost
  • Commenced legal actions following the U.S. Administration’s denial of a Presidential Permit for the Keystone XL pipeline

Read More: http://www.transcanada.com/news-releases-article.html?id=2024640&t=

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