The Kinder Morgan Canada Limited (TSX: KML) board of directors has declared a dividend for the second quarter of 2018 of $0.1625 per restricted voting share ($0.65 annualized), payable on August 15, 2018, to restricted voting shareholders of record as of July 31, 2018.  KML's restricted voting share dividends are eligible dividends for Canadian income tax purposes.

"KML had a strong second quarter due to its diverse portfolio of fee-based assets and stable cash flows," said KML Board Chairman and CEO Steve Kean.  While KML reported second quarter net income of $13.7 million, down from $25.1 million in the second quarter of 2017, Adjusted EBITDA was $107.8 million, up from $91.5 million in the previous period, and distributable cash flow (DCF) was $91.8 million, up 16 percent compared to the second quarter of 2017. DCF for the quarter benefited from greater contributions from both the Pipelines and Terminals segments versus the second quarter of 2017, offset by the payment of preferred share dividends.  Net income was impacted by an increase in Certain Items for the period, driven primarily by the non-cash write-off of capitalized KML credit facility fees.  KML's 2017 credit facilities were terminated and replaced with temporary credit facilities due to the pending sale of the Trans Mountain Pipeline System and the Trans Mountain Expansion Project (TMEP) announced on May 29, 2018.

In the second quarter, KML generated earnings per restricted voting share of $0.02, and produced DCF of $0.259 per restricted voting share relative to our declared $0.1625 per restricted voting share dividend, resulting in $10.1 million of excess DCF coverage above the company's dividend.

For the first half of 2018, KML generated net income of $58.1 million, Adjusted EBITDA of $205.8 million, and DCF of $168.8 million.  As of the end of the quarter, TMEP spend totaled approximately $1.3 billion on a cumulative basis.

Read the full news release here.