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    TransCanada Reports 50% Bump in 3Q Net Income

Summary

Notable developments include CGL FID and advancing Mexican pipelines.

by: Dale Lunan

Posted in:

Natural Gas & LNG News, Americas, Corporate, Financials, Infrastructure, , Canada

TransCanada Reports 50% Bump in 3Q Net Income

Canadian pipeline company TransCanada said October 31 it had 3Q 2018 net income of C$928mn (US$708.8mn), up more than 50% from 3Q 2017 net income of C$612mn (US$467mn). Comparable earnings rose to C$902mn from $614mn.

“During the third quarter of 2018, our diversified portfolio of critical energy infrastructure assets continued to perform extremely well,” TransCanada CEO Russ Girling said. “Comparable earnings of $1.00/share increased 43% compared to the same period last year reflecting the strong performance of our legacy assets, contributions from approximately C$7bn of growth projects that entered service over the last 12 months and the positive impact of US tax reform.”

Notable recent developments, TransCanada said, include the October 2 final investment decision to move forward with the C$6.2bn Coastal GasLink pipeline, a 670-km large diameter pipeline designed to move some 2.1bn ft3/day of western Canadian natural gas to the planned LNG Canada terminal in Kitimat, on BC’s northern coast.

TransCanada said construction activities are expected to begin in January 2019, adding that the regulatory permits to allow construction remain valid, despite a jurisdictional challenge lodged against Coastal GasLink before the National Energy Board (NEB).

Other Canadian developments noted by TransCanada include its NGTL 2022 expansion project, also announced October 31, and the continuation of its Canadian Mainline 2018-2020 toll review before the NEB.

In the US, TransCanada placed the Western Build portion of its WB XPress project in service in early October, with the Eastern Build to follow in 4Q 2018, while in Mexico, the Sur de Texas pipeline is advancing towards an in-service date near the end of the year and the Villa de Reyes pipeline towards completion and service in 2H 2019.