CALGARY, Alberta, July 18 (Reuters) - Pipeline operator Kinder Morgan Canada Ltd KML.TO posted lower-than-expected quarterly profit on Wednesday and said it was on track to begin construction of a controversial Canadian pipeline expansion in September.
In its first earnings report after being spun off from Houston's Kinder Morgan Inc (NYSE:KMI) KMI.N , the company said it expects the Trans Mountain pipeline expansion to be in service by the end of 2019.
Kinder Morgan Canada reported net income of C$25.1 million ($19.9 million), or 11 cents per share, in the second quarter ended June 30, below analysts' average estimate of 14 cents per share, according to Thomson Reuters I/B/E/S.
The company reported revenues of C$168.7 million, up from C$165.8 million for the same period last year. It said it expects to generate 2017 earnings before taxes and other deductions of just under C$400 million.
The Trans Mountain expansion almost triples the capacity of the existing pipeline, which is designed to carry crude from Canada's oil sands to the West Coast. ($1 = 1.2594 Canadian dollars)