TransCanada selling stake in five Quebec wind farms to Innergex

CALGARY — TransCanada Corp., the Calgary-based energy company, said in its quarterly results that it agreed to sell its 62 per cent stake in five wind farms in Quebec’s Gaspe peninsula to Innergex Renewable Energy Inc. for about $630 million.The Cartier wind power facilities currently have a total generating capacity of 590 megawatts and Innergex says the long-term plan is to generate approximately 1,780 gigawatts — enough to power about 80,900 Quebec households.The electricity produced by the wind farms is sold under existing agreements at fixed prices for terms of 20 years with Hydro-Quebec.Innergex said it expects the acquisition to generate revenues of approximately $82.9 million.The sale is subject to closing conditions and is expected to close in the fourth quarter of 2018.Following the sale, TransCanada said it will continue to be one of Canada’s largest private-sector power generators, producing enough power to meet the needs of more than six million homes.TransCanada also reported that second-quarter profits fell by 11 per cent.Net income attributable to common shareholders amounted to $785 million, or 88 cents per share, down from $881 million, or $1.01 per share during the same period in 2017.The most recent quarter included an $11 million after-tax loss related to the winding down of U.S. Northeast power marketing contracts.Revenue totalled $3.2 billion, largely in line with last year.Excluding that impact and adjusting for other items, earnings amounted to 86 cents per share, up from 76 cents per share in the year-ago quarter.That beat analysts expectations for adjusted earnings of 75 cents per share, according to Thomson Reuters Eikon, as 2018 results included projects that recently entered service and the positive impact of U.S. tax reform.The company projects that earnings and cash flow will continue to rise amid new projects entering service, strong market fundamentals and maintenance capital spending advancing as planned.TransCanada declared a dividend of 69 cents per share for the quarter ending Sept. 30, and expects annual dividend growth between eight to 10 per cent over the next few years.