Williams Cos. Inc. and TransCanada PipeLines Ltd. Report Strong First Quarter Earnings

Strategic Insights -

Williams Cos. Inc. and TransCanada PipeLines Ltd. (TCPL) have reported strong earnings in the first quarter, with Williams Cos. Inc. netting $1.1 billion (11.55/share) and TCPL reporting net income of US$71 million (31 cents/share). The positive earnings are attributed to the sale of Williams' communications unit and the acquisition of 60% of Transco Energy Co.'s common stock. Williams' income from operations was $83.2 million (86 cents/share), but the $2.5 billion after-tax gain from the sale of its Williams Telecommunications Systems (WilTel) unit added $1 billion (10.71/share) from discontinued operations.

Key Takeaways:

  • Williams Cos. Inc. reported net income of $1.1 billion ($11.55/share) in the first quarter, with a $2.5 billion after-tax gain from the sale of its WilTel unit.
  • The acquisition of 60% of Transco Energy Co.'s common stock contributed approximately 14 cents/share to Williams' quarterly earnings.
  • TransCanada PipeLines Ltd. (TCPL) reported net income of $71 million (31 cents/share) on revenues of $1.2 billion, a slight increase from $69.1 million (31 cents/share) in the 1994 first quarter.
  • TCPL's income was boosted by a National Energy Board decision to increase the Canadian mainline's rate of return on common equity for 1995 to 12.25% from 11.25% in 1994.
  • Williams' revenues totaled $958 million in the first quarter, a substantial increase from $386.6 million recorded in the same period last year.
  • Total throughput on Williams' pipelines was 817.9 Bcf, or 10.3 Bcfd, more than double the 307.4 Bcf, or 3.4 Bcfd, delivered in the same period last year.

Statistics:

  • Williams Cos. Inc. net income: $1.1 billion (11.55/share)
  • TCPL net income: $71 million (31 cents/share)
  • Williams' income from operations: $83.2 million (86 cents/share)
  • After-tax gain from WilTel sale: $2.5 billion
  • Transco merger contribution: 14 cents/share
  • TCPL income: $69.1 million (31 cents/share) in 1994 first quarter
  • TCPL revenue: $1.2 billion (1995 first quarter)
  • TCPL throughput: 630 Bcf (1995 first quarter)
  • Williams' pipeline throughput: 817.9 Bcf (1995 first quarter)
  • Williams' pipeline throughput increase: 210.5 Bcf (compared to 1994 first quarter)

Sources:

  • Williams Cos. Inc. news release
  • TransCanada PipeLines Ltd. (TCPL) news release
  • National Energy Board decision to increase rate of return on common equity for 1995