Keystone XL writedown pushes TransCanada to $2.5-billion loss in Q4

CALGARY -- TransCanada Corp. said Thursday it lost $2.5 billion in the fourth quarter -- mostly because of its stalled Keystone XL pipeline proposal.

See Full Article

The Calgary-based company (TSX:TRP) took a $2.9-billion non-cash charge related to Keystone XL which was blocked by U.S. President Barack Obama late last year.

The loss amounted to $3.47 per share for the quarter compared with a profit of $458 million or 65 cents per share a year earlier. Revenue grew to $2.85 billion from $2.62 billion.

The loss didn't prevent TransCanada from announcing a dividend increase for the 16th year in a row. The quarterly payment to shareholders will increase to 56.5 cents per common share, from 52 cents.

"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.

TransCanada's "comparable earnings" without the writedowns fell to $453 million or 64 cents per share compared with $511 million or 72 cents per share a year ago -- mainly because of lower contributions from its Canadian power and pipeline businesses.

TransCanada has launched a challenge to the U.S. government's rejection of Keystone XL.

The company has said it intends to file a claim under Chapter 11 of the North American Free Trade Agreement in response to the decision, which it called arbitrary and unjustified.

It has also filed a lawsuit in the U.S. Federal Court in Texas asserting that the president's decision to deny construction of Keystone XL exceeded his power under the U.S. Constitution.

In addition to operating one of North America's largest networks of oil and gas pipelines, TransCanada is part owner of the Bruce Power nuclear electricity business in Ontario as well as other power generating operations.

Girling said many of TransCanada's assets are underpinned by regulated businesses or long-term contracts that provide predictable cash flows and minimal risk.

"In addition, we are proceeding with $13 billion of near-term growth opportunities that are expected to be in-service by 2018."

Among its projects are the Prince Rupert Gas Transmission line, the Coastal GasLink project, and the Merrick line -- all in British Columbia.

It's also working on the Energy East oil pipeline that would stretch from Alberta to as far east as Saint John, N.B.



Advertisements

Latest Economic News

  • Poker tables keep decreasing on Las Vegas casino floors

    Economic CTV News
    LAS VEGAS -- When the Monte Carlo closes its eight-table poker room in about a month as part of a $450 million overhaul, the Las Vegas Strip will have lost nearly a quarter of the tables it had a decade ago. Source
  • Las Vegas casinos continue to close poker rooms

    Economic CTV News
    LAS VEGAS -- When the Monte Carlo casino closes its eight-table poker room in about a month as part of a $450 million overhaul, the Las Vegas Strip will be down nearly a quarter of the tables it had a decade ago. Source
  • Google's YouTube loses more advertisers over offensive videos

    Economic CBC News
    An advertising boycott of YouTube is broadening, a sign that big-spending companies doubt Google's ability to prevent marketing campaigns from appearing alongside repugnant videos. PepsiCo, Walmart Stores and Starbucks on Friday confirmed that they have also suspended their advertising on YouTube after the Wall Street Journal found Google's automated programs placed their brands on five videos containing racist content. Source
  • National contest tries to convince students that lucrative sales jobs are 'sexy'

    Economic CBC News
    Sonya Meloff wants everyone to know that a career in sales is sexy. Not sleazy. "I think that sales is a really sexy job," says the founder of the Toronto's Sales Talent Agency. "You get to be at the forefront of representing a company, you're the one that gets to talk to the customers. Source
  • Report examines grim Bangladesh leather trade, links to West

    Economic CTV News
    DHAKA, Bangladesh -- Hazardous, heavily polluting tanneries, with workers as young as 14, supplied leather to companies that make shoes and handbags for a host of Western brands, a non-profit group that investigates supply chains says. Source
  • Notley: Keystone XL doesn't lessen need for Energy East, Trans Mountain

    Economic CTV News
    CALGARY -- Alberta Premier Rachel Notley says U.S. approval of the Keystone XL pipeline does not lessen the need for two other controversial proposals within Canada's borders. U.S. President Donald Trump announced the green light for the line more than eight years after Calgary-based TransCanada first applied for a cross-border permit. Source
  • Trump's Keystone XL decision sets up new fight in Nebraska

    Economic CTV News
    LINCOLN, Neb. -- U.S. President Donald Trump may have approved a federal permit for the Keystone XL pipeline, but the fight is far from over in Nebraska, the one state in its path that has yet to approve the project. Source
  • Toronto stock index extends rally, Wall Street mixed after 'Trumpcare' pulled

    Economic CBC News
    Specialist Stephen Naughton, left, and trader Michael Milano work on the floor of the New York Stock Exchange on Wednesday. North American equity markets finished mixed on Friday after U.S. Republicans withdrew their bill to overhaul Obamacare. Source
  • PepsiCo, Wal-Mart, Starbucks join YouTube ad boycott in U.S.

    Economic CTV News
    SAN FRANCISCO -- An advertising boycott of YouTube is broadening in a sign that big companies doubt Google's ability to prevent marketing campaigns from appearing alongside repugnant videos. PepsiCo, Wal-Mart Stores and Starbucks on Friday confirmed that they have also suspended their advertising on YouTube after the Wall Street Journal found Google's automated programs placed their brands on five videos containing racist content. Source
  • Debate renewed over economic benefits of Keystone XL pipeline

    Economic CTV News
    U.S. President Donald Trump is calling his administration's approval of the Keystone XL pipeline a new era for American energy policy. As expected, the State Department reversed a decision by the Obama administration and favoured energy development over environmentalists' objections to the pipeline, which will carry thick Canadian crude oil to Nebraska, where it can flow on to refineries along the Gulf Coast. Source