* Q3 FFO C$0.51/unit vs C$0.64/unit last year
* Rev up 2 pct
Oct 28 (Reuters) - Canada's AltaGas Ltd (ALA.TO) posted lower funds from operations on Thursday, hurt partly by higher power prices.
On a cash flow basis, funds from operations for the third-quarter fell to C$41.5 million, or 51 Canadian cents a unit, down from C$50.5 million or 64 Canadian cents a unit in the year ago period.
The company, which is involved in natural gas extraction and transmission, energy services and power generation, said FFO was affected by the seasonality of the natural gas distribution business.
The company said it reports strong first and fourth quarter results as majority of natural gas deliveries occur during the winter heating season, followed by lower contributions in the second and third quarters.
Calgary, Alberta-based AltaGas said net income applicable to common shares was C$6 million, or 7 Canadian cents a share, down from C$34.7 million, or 43 Canadian cents a year earlier.
Adjusting for the impact of mark-to-market accounting, net income in third quarter 2010 was C$16.4 million, or 20 Canadian cents a share.
Revenue rose 2 percent to C$297.4 million.
The company's shares, which have gained 7 percent in value since it said it would raise C$200 million in a bought deal in August [ID:nSGE6790KM], were up 8 Canadian cents at C$21.50 during morning trade Thursday on the Toronto Stock Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Prem Udayabhanu) ((email@example.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: firstname.lastname@example.org))