TransCanada PipeLines reports 20% increase in earnings for 2000

CALGARY�Calgary-based TransCanada PipeLines Ltd. declared net income of $711 million (Can.) for 2000 from revenue of $21.2 billion.

In 1999, TransCanada lost $80 million on revenue of $11.9 billion.

In fourth quarter 2000, TransCanada earned $162 million on revenue of $8.2 billion. This compares favorably to fourth quarter 1999, when the company lost $570 million on revenue of $3.5 billion.

TransCanada attributed higher revenues to higher natural gas prices and increased demand.

The company, which has been involved in a reorganization and a $3.45 billion sale of non-core assets, increased its quarterly dividend to 22.5� from 20�, partially replacing an earlier dividend cut that upset investors. About $2.5 billion of the gains from asset sales in 2000 were applied to debt reduction.

For 2000, TransCanada reported a 20% increase in earnings before unusual items to $605 million from $505 million in 1999.

TransCanada said earnings from continuing operations in the fourth quarter were $162 million before unusual items, up from $103 million for fourth quarter 1999.

The improvement was attributed to improved earnings from the company�s power generation business and a reduction in financing costs.

TransCanada forecasts discretionary cash flow of $350 million in 2001, after allowance for dividends and a $500 million capital program.

�In 2000, we committed to restoring and strengthening TransCanada�s financial position. Our performance has shown we delivered,� said CEO Doug Baldwin.

�We believe the year 2000 marked the reemergence of TransCanada as a major player in the Canadian energy industry.�

Baldwin also said the company positioned itself in 2000 to deal with changes in the marketplace and increased competition. He said the company will work this year on expanding its gas flow from Alberta suppliers and will also try to expand sales into California and the eastern US.