SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA(1)  
      2006  
  (millions of dollars except per share amounts)   Fourth   Third   Second   First    
  Revenues   2,091   1,850   1,685   1,894    
  Net Income    
  Continuing operations   269   293   244   245    
  Discontinued operations   —   —   —   28    
      269   293   244   273    
  Share Statistics  
  Net income per share – Basic  
  Continuing operations   $0.55   $0.60   $0.50   $0.50    
  Discontinued operations   —   —   —   0.06    
      $0.55   $0.60   $0.50   $0.56    
  Net income per share – Diluted  
  Continuing operations   $0.54   $0.60   $0.50   $0.50    
  Discontinued operations   —   —   —   0.06    
      $0.54   $0.60   $0.50   $0.56    
  Dividend declared per common share   $0.32   $0.32   $0.32   $0.32    
     
      2005  
  (millions of dollars except per share amounts)   Fourth   Third   Second   First    
  Revenues   1,771   1,494   1,449   1,410    
  Net Income  
  Continuing operations   350   427   200   232    
  Discontinued operations   —   —   —   —    
      350   427   200   232    
  Share Statistics  
  Net income per share – Basic  
  Continuing operations   $0.72   $0.88   $0.41   $0.48    
  Discontinued operations   —   —   —   —    
      $0.72   $0.88   $0.41   $0.48    
  Net income per share – Diluted  
  Continuing operations   $0.71   $0.87   $0.41   $0.48    
  Discontinued operations   —   —   —   —    
      $0.71   $0.87   $0.41   $0.48    
  Dividend declared per common share   $0.305   $0.305   $0.305   $0.305    
     
(1)  The selected quarterly consolidated financial data has been prepared in accordance with Canadian GAAP. Certain comparative figures have been reclassified to conform with the current year's presentation. For a discussion on the factors affecting the comparability of the financial data, including discontinued operations, refer to Notes 1 and 22 of TransCanada's 2006 audited consolidated financial statements included in TransCanada's 2006 Annual Report.

Factors Impacting Quarterly Financial Information

In Pipelines, which consists primarily of the Company's investments in regulated pipelines, annual revenues and net earnings fluctuate over the long term based on regulators' decisions and negotiated settlements with shippers. Generally, quarter-over-quarter revenues and net earnings during any particular fiscal year remain relatively stable with fluctuations arising as a result of adjustments being recorded due to regulatory decisions and negotiated settlements with shippers, seasonal fluctuations in short term throughput volumes on U.S. pipelines and items outside of the normal course of operations.

In Energy, which consists primarily of the Company's investments in electrical power generation plants and natural gas storage facilities, quarter-over-quarter revenues and net earnings are affected by seasonal weather conditions, customer demand, market prices, planned and unplanned plant outages as well as items outside of the normal course of operations.

Significant items which impacted 2006 and 2005 quarterly net earnings are as follows.

  • In first quarter 2005, net earnings included a $48 million after-tax gain related to the sale of PipeLines LP units. Energy earnings included a $10-million after-tax cost for the restructuring of natural gas supply contracts by OSP. In addition, Bruce Power's equity income was lower than previous quarters due to the impact of planned maintenance outages and the increase in operating costs as a result of moving to a six-unit operation.
  • Second quarter 2005 net earnings included $21 million ($13 million related to 2004 and $8 million related to 2005) with respect to the NEB's decision on the Canadian Mainline's 2004 Tolls and Tariff Application (Phase II). On April 1, 2005, TransCanada completed the acquisition of hydroelectric generation assets from USGen. Bruce Power's income from equity investments was lower than previous quarters due to the continuing impact of planned maintenance outages and an unplanned maintenance outage on Unit 6 relating to a transformer fire.
  • In third quarter 2005, net earnings included a $193-million after-tax gain related to the sale of the Company's ownership interest in Power LP. In addition, Bruce Power's income from equity investments increased from prior quarters due to higher realized power prices and slightly higher generation volumes.
  • In fourth quarter 2005, net earnings included a $115-million after-tax gain on the sale of Paiton Energy. In addition, Bruce A was formed and Bruce Power's results were proportionately consolidated, effective October 31, 2005.
  • In first quarter 2006, net earnings included an $18-million after tax ($29-million pre-tax) bankruptcy settlement from a former shipper on the Gas Transmission Northwest System.
  • In second quarter 2006, net earnings included $33 million of future income tax benefits as a result of reductions in Canadian federal and provincial corporate income tax rates. Net earnings also included a $13-million after-tax gain related to the sale of the Company's interest in Northern Border Partners, L.P.
  • In third quarter 2006, net earnings included an income tax benefit of approximately $50 million as a result of the resolution of certain income tax matters with taxation authorities and changes in estimates.
  • In fourth quarter 2006, net earnings included approximately $12 million related to income tax refunds and related interest.