CALGARY, Alta. - TC PipeLines, LP (NASDAQ: TCLP) on July 30 reported second quarter 2009 net income of $13.7 million or $0.31 per common unit (all amounts in U.S. dollars), a decrease of $5.5 million compared to $19.2 million or $0.47 per common unit for the same period last year.
The market responded to the dip in earnings with 4.4 times normal volume changing hands. TCLP units dipped as low as $33.08 from its prior day close of $37.49 before settling at $36.00 on the day, down 3.97 percent.
TC Pipelines attributed the decrease in net income to lower Northern Border Pipeline Co. revenues and one-time costs associated with its acquisition of North Baja Pipeline, LLC (North Baja) and amendment of the associated incentive distribution rights (IDRs).
While unit income was down, TCLP announced an increase in its unit dividend. "We are very pleased to provide unitholders an increase in our quarterly cash distribution to $0.73 per common unit, equivalent to a $0.10 increase or $2.92 per common unit on an annualized basis. This followed the July 1st close of the transaction to acquire the North Baja pipeline from TransCanada Corp. and to amend the incentive distribution rights," said Russ Girling, chairman and chief executive officer of TC PipeLines GP, Inc.
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