TransCanada posts $2.5bn loss in Q4 on Keystone XL charge
TransCanada Corp. (TSX:TRP), the company behind the controversial Keystone XL pipeline proposal blocked by the Obama administration last year, reported its first-ever loss in the fourth quarter of 2015 mostly because of the stalled project.
The Calgary-based firm lost $2.5 billion in the period as it took a $2.9-billion non-cash charge last year related to the impaired value of Keystone XL.
The net loss also included a number of other smaller items, partially offset by an increase in revenue to $2.85 billion from $2.62 billion.
Despite the unfavourable results, TransCanada hiked its dividend again for the 16th year in a row — it increased it 9% to 56.5 cents a share.
“Although 2015 was a very challenging year for the energy industry, our $64 billion portfolio of high-quality energy infrastructure assets performed well,” Russ Girling, TransCanada’s president and chief executive, said in a statement.
“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,” he noted.
The company restated it has not given up on Keystone XL, which would link Canadian crude supplies with U.S. Gulf Coast refineries. In fact, TransCanada is suing the U.S. government for rejecting the project and said the pipeline is among about $27 billion of large– scale oil and gas pipelines the company aims to build over the long term.
The company’s shares were down 1% to $47.71 in Toronto at 11:20 am ET.