TransCanada Q3 profit falls in line with analyst estimates, revenue rises more than expected

By The Canadian Press

CALGARY - TransCanada Corp. (TSX: TRP.TO) reports its profit fell in the third quarter, but the 22 per cent decline in comparable earnings was within analyst expectations while revenue increased more than expected to above $2.2 billion.

Comparable earnings per share, which analysts track more closely than net earnings, fell to 49 cents from 63 cents, meeting a consensus estimate compiled by Thomson Reuters based on 11 analysts.

The Calgary-based pipeline company's net income fell by 25 per cent to $345 million or 50 cents per share in the third quarter, down from $390 million or 67 cents per share in the same period of 2008.

Meanwhile, TransCanada's revenue rose by five per cent to $2.25 billion from $2.14 billion. That beat a consensus estimate of $2.175 billion based on three analysts tracked by Thomson Reuters

TransCanada's chief executive said earnings from its pipelines and natural gas storage units were ahead of last year's but revenue from power-generation was eroded by the economic downturn.

During the third quarter, TransCanada increased its stake in the Keystone pipeline project to 100 per cent by buying out ConocoPhillips.

When completed, the Keystone pipeline will be one of the largest oil delivery systems in North America with the capacity to deliver 1.1 million barrels per day from Western Canada to the largest refining markets in the United States.