TORONTO, Feb 3 (Reuters) - TransCanada Corp (TRP.TO) boosted its dividend by 6 percent on Tuesday even though fourth-quarter profit fell from a year earlier, when it benefited from a favorable income tax adjustment and a gain on the sale of land.
The country’s biggest power and pipeline company said it earned C$277 million ($223.6 million), or 47 Canadian cents a basic share, down from C$377 million, or 70 Canadian cents a share, in fourth quarter 2007.
The 2007 results included C$56 million in favorable income tax adjustments and a C$14 million gain on the sale of land.
Comparable earnings, which exclude most one-time gains and charges, were C$271 million, or 46 Canadian cents per share, down from C$297 million, or 55 Canadian cents a share.
The decrease was primarily due to higher corporate costs, which included unrealized losses of C$39 million after-tax from the change in the fair value of derivatives
The company was expected to post comparable earnings of 53 Canadian cents, the analysts’ average forecast as compiled by Reuters Estimates.
Revenue rose 6.5 percent to C$2.33 billion.
TransCanada is best known for its network of natural-gas pipelines in Canada and the United States and for its power-generation operations, which include its stake in the Bruce nuclear plant in Ontario and New York City’s Ravenswood generating station.
The company raised its quarterly dividend by 6 percent to 38 Canadian cents a share. ($1=$1.24 Canadian) (Reporting by Scott Anderson; Editing by Lisa Von Ahn)