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Released February 12, 2016 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--TransCanada Corporation (TSX:TRP) (NYSE:TRP) (Calgary, Alberta) was stung by denial of a U.S. presidential permit for the Keystone XL Pipeline, but still plans to spend C$58 billion ($42 billion) on capital projects through 2019 and beyond, according to executives with the natural gas and liquids pipelines, power generation and gas storage company. Industrial Info is tracking 158 active TransCanada projects ranging in value from $1 million to $5.5 billion.
The planned capital expenditures include C$13 billion ($9 billion) in near-term growth projects through 2018 and C$45 billion ($32 billion) in medium-to-long-term projects for 2019 and beyond. The company noted greater uncertainty regarding the timing and estimated costs of the meted the timing and estimated costs of the medium-to-long-term projects. For 2016, TransCanada expects C$6 billion ($4 billion) in capital expenditures, including C$1.2 billion ($860 million) in maintenance spending. Capital spending in 2015 totaled C$4.4 billion ($3.2 billion).
TransCanada said it took a C$2.9 billion ($2 billion) after-tax impairment charge as a result of the denial of the U.S. permit for Keystone. In November, President Barack Obama denied a permit to build 1,179-mile, crude-oil pipeline, which would have brought up to about 830,000 barrels per day of oil sands crude oil to the U.S. TransCanada is challenging the denial in U.S. court. For related information, see November 10, 2015 article - KXL Pipeline Permit Denial Caps a Week to Forget for TransCanada and November 16, 2015, article - Keystone XL Permit Denial Could be a Boon for TransCanada.
The company reported a C$2.5 billion ($2.5 billion) net loss in fourth-quarter 2015, mostly due to the Keystone impairment, in comparison with net earnings of C$458 million ($329 million) in fourth-quarter 2014. For all of 2015, TransCanada reported a C$1.2 billion ($860 million) net loss, compared with C$1.7 billion ($1.2 billion) in net earnings for 2014. Looking forward, company officials said they expect to see an overall increase in earnings this year, even when discounting the impact of the Keystone denial.
Chief Executive Officer Russ Girling outlined several TransCanada projects being planned or under way. He noted the company was awarded the contract to build, own and operate the $500 million Tuxpan-Tula pipeline in the Mexico. The 155-mile natural gas pipeline will run from Tuxpan in the state of Veracruz through the states of Puebla and Hildago. TransCanada subsidiary Transportadora de Gas del Noroeste is working on the project with state-owned CFE Comision Federal de Electricidad (Mexico City) on the project. Construction kickoff is set for first-quarter 2016, with completion by the end of 2017.
He also gave an updates on the Energy East Pipeline, which would move crude oil from western Canada to eastern Canada. TransCanada officially estimates the project price tag at C$15.7 billion ($11 billion), but other estimates have put it at more than C$19.3 billion ($13.9 billion). Girling said TransCanada filed an amendment to the original application with Canada's National Energy Board. The amendment adjusts the proposed route, scope and capital cost of the project reflecting refinement and scope change including the removal of a marine port in Québec. The project will continue to serve the three eastern Canadian refineries along the route in Montréal and Québec City, Québec and Saint John, New Brunswick. Girling said he still expects the project to be completed in 2020 despite the changes. For related information, see January 4, 2016, article - Energy East Pipeline Route Amended, Cost Increased, but Still the Same Ol' Beast.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
The planned capital expenditures include C$13 billion ($9 billion) in near-term growth projects through 2018 and C$45 billion ($32 billion) in medium-to-long-term projects for 2019 and beyond. The company noted greater uncertainty regarding the timing and estimated costs of the meted the timing and estimated costs of the medium-to-long-term projects. For 2016, TransCanada expects C$6 billion ($4 billion) in capital expenditures, including C$1.2 billion ($860 million) in maintenance spending. Capital spending in 2015 totaled C$4.4 billion ($3.2 billion).
TransCanada said it took a C$2.9 billion ($2 billion) after-tax impairment charge as a result of the denial of the U.S. permit for Keystone. In November, President Barack Obama denied a permit to build 1,179-mile, crude-oil pipeline, which would have brought up to about 830,000 barrels per day of oil sands crude oil to the U.S. TransCanada is challenging the denial in U.S. court. For related information, see November 10, 2015 article - KXL Pipeline Permit Denial Caps a Week to Forget for TransCanada and November 16, 2015, article - Keystone XL Permit Denial Could be a Boon for TransCanada.
The company reported a C$2.5 billion ($2.5 billion) net loss in fourth-quarter 2015, mostly due to the Keystone impairment, in comparison with net earnings of C$458 million ($329 million) in fourth-quarter 2014. For all of 2015, TransCanada reported a C$1.2 billion ($860 million) net loss, compared with C$1.7 billion ($1.2 billion) in net earnings for 2014. Looking forward, company officials said they expect to see an overall increase in earnings this year, even when discounting the impact of the Keystone denial.
Chief Executive Officer Russ Girling outlined several TransCanada projects being planned or under way. He noted the company was awarded the contract to build, own and operate the $500 million Tuxpan-Tula pipeline in the Mexico. The 155-mile natural gas pipeline will run from Tuxpan in the state of Veracruz through the states of Puebla and Hildago. TransCanada subsidiary Transportadora de Gas del Noroeste is working on the project with state-owned CFE Comision Federal de Electricidad (Mexico City) on the project. Construction kickoff is set for first-quarter 2016, with completion by the end of 2017.
He also gave an updates on the Energy East Pipeline, which would move crude oil from western Canada to eastern Canada. TransCanada officially estimates the project price tag at C$15.7 billion ($11 billion), but other estimates have put it at more than C$19.3 billion ($13.9 billion). Girling said TransCanada filed an amendment to the original application with Canada's National Energy Board. The amendment adjusts the proposed route, scope and capital cost of the project reflecting refinement and scope change including the removal of a marine port in Québec. The project will continue to serve the three eastern Canadian refineries along the route in Montréal and Québec City, Québec and Saint John, New Brunswick. Girling said he still expects the project to be completed in 2020 despite the changes. For related information, see January 4, 2016, article - Energy East Pipeline Route Amended, Cost Increased, but Still the Same Ol' Beast.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
