VANCOUVER (miningweekly.com) – Pipeline operator TransCanada has more than doubled its first-quarter profit, boosted higher by a 35% jump in revenues, the company announced on Friday.

The Calgary-based company said that higher contributions from its US and Mexican natural gas pipelines and higher earnings from Western Power following the termination of the Alberta power purchase agreements in 2016.

Net profit attributable to shareholders totalled C$643-million, or $0.74 a share, for the quarter ended March 31, up from C$252-million, or C$0.36 a share, in the comparable period a year earlier. Comparable earnings, adjusted to remove special items in the quarter, amounted to C0.81 a share, up from C$494-million, or $0.70 a share a year earlier, comfortably beating average analyst forecasts for earnings of C$0.74 a share.

"We generated record first-quarter financial results, excluding specific items. Comparable earnings per share increased 16% compared to first quarter 2016, primarily due to strong performance across our natural gas pipelines business, including Columbia, which was acquired in mid-2016, while net cash provided by operations reached C$1.3-billion,” president and CEO Russ Girling stated.

Revenue came in at C$3.39-billion, up from C$2.5-billion in the first quarter of 2016 and about C$200-million higher than average analyst estimates.

TransCanada has to date invested about C$7.5-billion in its C$23-billion near-term capital programme, which is expected to generate significant growth in earnings and cash flow and support an expected annual dividend growth rate at the upper end of an 8% to 10% range through to 2020.

During the first quarter, TransCanada received a US Presidential Permit for the Keystone XL pipeline, and the company is now focused on seeking regulatory approval in Nebraska, while progressing commercial discussions with its customers.

“Success in advancing these or other growth initiatives could augment or extend the company's dividend growth outlook through 2020 and beyond," Girling added.