CALGARY – TransCanada Corp. (TSX:TRP) said Thursday it earned a second-quarter profit of $416 million, boosted by the sale of Cancarb Ltd. and its related power plant earlier this year.
The pipeline operator said the profit amounted to 59 cents per share, up from $365 million or 52 cents per share a year ago.
Revenue grew to $2.23 billion for the quarter, up from $2.01 billion in the second quarter of 2013.
Cancarb produces a material called “thermal carbon black” which is used to make high-grade rubber, insulation and ceramics.
TransCanada sold the facility in Medicine Hat, Alta., and a 41-megawatt power plant that uses waste heat from the manufacturing process to Japan’s Tokai Carbon Co. Ltd. for $190 million.
Excluding the sale of Cancarb and the power plant and a charge related to a restructuring of a natural gas storage contract, TransCanada said it earned a comparable profit of $332 million or 47 cents per share.
That compared with a profit of $357 million or 51 cents per share for the same quarter last year.
The average analyst estimate had been for a profit of 49 cents per share, according to data compiled by Thomson Reuters.
TransCanada said higher earnings from its Keystone and Mexican pipelines were more than offset by lower contributions from Western Power and Bruce Power.
“The majority of our business segments performed well over the course of the second quarter and demonstrate the benefits of a diversified and growing portfolio of critical energy infrastructure assets,” TransCanada chief executive Russ Girling said in a statement.
“Although weak Alberta power prices and maintenance outages at Bruce Power weighed on second quarter results, both businesses are expected to produce stronger results in the future due to positive Alberta power market fundamentals and higher plant availability at Bruce Power.”