By an OGJ Online Correspondent
CALGARY, Feb. 22�Westcoast Energy Inc., Vancouver, BC, reports a 53% increase in 2000 earnings over 1999 to a record $340 million (Can.) on revenue of $8.95 billion.
Michael Phelps, CEO of the gas pipeline company, said Westcoast had significantly improved results from its energy marketing division, Union Energy, from new pipelines it is operating, and international operations.
Union Gas, the company�s Ontario gas utility unit, also had revenue gains from increased gas demand this winter.
Westcoast said its service business, including energy marketing, earned $45 million in 2000, compared with a loss of $32 million in 1999.
Phelps said the company will increase its dividend to $1.36/share from $1.28, but will use most of its internally generated funds for investment opportunities. These would include pipeline expansions, increased storage and transmission capacity at Union Gas in Ontario and expansion of facilities in British Columbia, where Westcoast serves BC markets and the US Pacific Northwest.
The company plans capital spending of $725 million in 2001, about half of the 2000 level because of completion of major projects last year.