IN 2002, TRANSCANADA DELIVERED ON ITS COMMITMENT TO MAXIMIZE SHAREHOLDER VALUE. TOTAL SHAREHOLDER RETURN, INCLUDING DIVIDENDS, WAS 21 PER CENT.

We continued to make profitable investments in our core businesses, pay down debt and reduce operating costs. Our actions resulted in an increase in earnings and cash flow and a stronger balance sheet. In January 2003, TransCanada’s Board of Directors raised the quarterly dividend on the company’s common shares from $0.25 per share to $0.27 per share, for the quarter ended March 31, 2003.

OPERATING RESULTS

Year ended December 31		2002		2001		2000
(millions of dollars)
Income Statement
Net income/(loss) applicable to common shares
Continuing operations		747		686		628
Discontinued operations		–		(67)		61
		747		619		689
Cash Flow Statement
Funds generated from continuing operations		1,827		1,624		1,495
Capital expenditures and acquisitions in continuing operations		814		1,025		773
Balance Sheet
Total assets		19,916		19,954		24,817
Long-term debt		8,815		9,347		9,928
Common shareholders’ equity		5,747		5,426		5,211

COMMON SHARE STATISTICS

Year ended December 31		2002		2001		2000
Net income/(loss) per share – basic
Continuing operations		$ 1.56		$ 1.44		$ 1.32
Discontinued operations		–		(0.14)		0.13
		$ 1.56		$ 1.30		$ 1.45
Net income per share – diluted		$ 1.55		$ 1.30		$ 1.45
Dividends declared per share		$ 1.00		$ 0.90		$ 0.80
Common shares outstanding (millions)
Average for the year		478.3		475.8		474.6
End of year		479.5		476.6		474.9