Keystone pipeline operator TransCanada Corp. on Thursday beat analysts’ estimates for quarterly profit, as it moved more oil and gas amid a rise in crude production.
Canadian pipelines are running at full capacity owing to a production surge in Alberta, forcing the provincial government to order production cuts at a time when crude demand from the country has risen, after U.S. sanctions against Venezuela’s state oil company.
TransCanada’s earnings from its liquids pipelines came in at $532-million compared with a loss of $932-million a year earlier.
The pipeline company says it will now pay a quarterly dividend of 75 cents a share, up from its previous payment of 69 cents a share.
The company said it has secured commercial support for all available Keystone XL project capacity. The 590,000 barrels-a-day pipeline system is a critical artery that takes Canadian crude from northern Alberta to refineries in the U.S. Midwest.
The controversial $8-billion pipeline was approved by the Trump administration in 2017, but faced resistance from environmentalists worried about the process of fuel extraction.
In the reported quarter, the company’s net income from its natural gas system increased by $18-million because of higher investment base and continued system expansions.
TransCanada’s net income attributable to shareholders rose to $1.09-billion, or $1.19 a share, in the quarter ended Dec. 31.
On an adjusted basis, it earned $1.03 a share and beat analysts’ expectation of 96 cents a share, according to IBES data from Refinitiv.
Revenue rose 7.7 per cent to $3.9-billion in the quarter and beat the average analyst estimate of $3.83-billion.
With files from The Canadian Press