Aug. 2 (UPI) -- After unloading wind energy assets, Canadian energy company TransCanada said second quarter growth was supported by U.S. tax reforms and legacy assets.
TransCanada reported net income for the second quarter of $602 million, compared with $676 million during the same period last year. Earnings per share, president and CEO Russ Girling said, was net positive, however.
"Comparable earnings of 86 cents per share increased 13 percent compared to the same period last year reflecting the strong performance of our legacy assets, contributions from approximately $7 billion of growth projects that entered service over the last twelve months and the positive impact of U.S. tax reform," he said in a statement.
U.S. President Donald Trump signed the Tax Cuts and Jobs Act at the end of December. The measure, which permanently cut taxes for corporations from 35 percent to 21 percent, passed out of the House and Senate along party lines.
In March, TransCanada said it was reviewing a proposal from the U.S. Federal Energy Regulatory Commission to change how pipeline companies are taxed. The agency ruled against certain tax allowances for master limited partnerships, noting that some entities "may be collecting unjust and unreasonable rates" in light of the recent reduction in the corporate income tax outlined in the federal tax overhaul.
The Canadian pipeline company said it doesn't plan to make revisions to its corporate guidance or funding plans through 2020 as a result of changes in the U.S. tax code. On Thursday, the company said FERC was weighing industry comments and expected to make its final ruling effective Sept. 13.
Girling made no mention of U.S. tariffs on imported steel that could make pipeline projects more expensive. Some sectors of the U.S. economy are pleading for relief because of the expected hike in products. Only a handful of foreign suppliers make steel pipe and the U.S. energy sector could face production woes because of the impact of tariffs.
TransCanada said it had more than $15 billion worth of medium- and long-term projects planned, including the Keystone XL pipeline, a controversial oil network fast-tracked by the Trump administration.
"Success in advancing these and/or other growth initiatives associated with our vast North American footprint could extend our growth outlook beyond 2021," Girling stated.
The Nebraska Supreme Court in March agreed to hear an appeal against a challenge to the planned route for Keystone XL, which could impact a sensitive ecosystem if it proceeds as planned. TransCanada said it expects a decision no later than first quarter 2019.
On Thursday, the company agreed to sell its 62 percent share in the 590-megawatt Cartier wind farm in Quebec to Innergex Renewable Energy Inc. for $483 million.