TransCanada President & CEO discusses company’s strong 2015 performance and positioning for the future.
Although 2015 was a very challenging year for the energy industry, TransCanada’s $64 billion portfolio of high-quality, long-life, critical energy infrastructure assets performed very well.
As outlined in our 2015 Annual Report released yesterday, comparable earnings and funds generated from operations reached record levels while the company continued to safely deliver energy every day to millions of people and businesses.
“We have a diversified asset base across three geographies, across three businesses,” explains Russ Girling, TransCanada President & CEO. “Even within those three businesses, we have a diverse portfolio of how we’re contractually structured; 95 per cent of our revenues are underpinned by either contract or regulated business models.
“That gives us great predictability of our cash flows, and on an annual basis we keep adding to that portfolio.”
The company, however, was not immune to setback in 2015. As a result of the U.S. administrations decision to deny a Presidential Permit for Keystone XL, TransCanada recorded a $2.9 billion write down of its investment in the project.
Rather than being defined by this single project however, TransCanada demonstrated how the strength of a diverse portfolio can help maintain a strong fiscal performance in all phases of the economic cycle.
In looking ahead:
- TransCanada is proceeding with $13 billion of near-term growth opportunities that are expected to be in service by 2018.
- Over the medium and long term, TransCanada is advancing $45 billion of commercially-secured, large scale projects that have the potential to transform our company.
- TransCanada remains well positioned to continue to grow earnings and cash flow in the years ahead.
- The company remains committed to an eight to 10 per cent growth rate in our dividend through 2020.