TransCanada Announces First Quarter Results, Board Declares Dividend of $0.305 per Share
CALGARY, Alberta – April 29, 2005 – (TSX: TRP) (NYSE: TRP)
First Quarter 2005 Financial Highlights:
(All financial figures are in Canadian dollars unless noted otherwise)
TransCanada Corporation today announced net income for first quarter 2005 of $232 million or $0.48 per share, compared to $214 million or $0.44 per share for first quarter 2004. The increase of $18 million or $0.04 per share was primarily attributable to the sale of 3.5 million common units of TC PipeLines, LP. The sale generated an after-tax gain of $48 million or $0.10 per share. Partially offsetting this gain was a reduction in income from Power of $35 million or $0.07 per share, which included a $10 million after-tax cost for the restructuring of natural gas supply contracts and the impact of the sale of the Curtis Palmer and ManChief plants in 2004.
Funds generated from operations of $407 million decreased $8 million compared to first quarter 2004.
“Since the beginning of the first quarter, we have continued to add to our portfolio of high quality energy infrastructure to build on our solid growth strategy,” said Hal Kvisle, TransCanada’s chief executive officer.
“For example, the USGen transaction, which we closed on April 1, will contribute to earnings for the remainder of the year. We are also pleased with the performance of the Gas Transmission Northwest and North Baja Systems which we acquired in November 2004 and contributed net income of $23 million in first quarter 2005.
“Adherence to our strategy, combined with our strong balance sheet, position us to deliver value for shareholders in the future.”
During first quarter 2005, TransCanada:
TransCanada will hold a teleconference today at 1:30 p.m. (Mountain) / 3:30 p.m. (Eastern) to discuss the first quarter 2005 financial results and general developments and issues concerning the company. Analysts, members of the media and other interested parties wanting to participate should phone 1-877-211-7911 or 416-405-9310 (Toronto area) at least 10 minutes prior to the start of the teleconference. No passcode is required. A live audio webcast of the teleconference will also be available on TransCanada's website at www.transcanada.com.
The conference will begin with a short address by members of TransCanada's executive management, followed by a question and answer period for investment analysts. A question and answer period for members of the media will immediately follow.
A replay of the teleconference will be available two hours after the conclusion of the call until midnight Eastern time May 6, 2005, by dialing 1-800-408-3053 or 416-695-5800 (Toronto area) and entering pass code 3147965. The webcast will be archived and available for replay.
TransCanada is a leading North American energy company. TransCanada is focused on natural gas transmission and power services with employees who are expert in these businesses. TransCanada’s network of approximately 41,000 kilometres (25,600 miles) of pipeline transports the majority of Western Canada’s natural gas production to the fastest growing markets in Canada and the United States. TransCanada owns, controls or is constructing approximately 5,700 megawatts of power generation – an amount of power that can meet the needs of about 5.7 million average households. The Company’s common shares trade under the symbol TRP on the Toronto and New York stock exchanges.
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For further information, please contact:
Kurt Kadatz / Hejdi Feick
(403) 920-7859 or Toll Free (800) 608-7859
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