Operating profits, which exclude some one-time charges, were $186 million, or 39 cents a share, in the March quarter, compared with $162 million, or 34 cents, a share, in the same period a year ago.
Analysts polled by Thomson Financial/First Call expected only 37 cents a share.
Excluding payment of preferred dividends, net income was $200 million, or 39 cents a share, up from $179 million, or 34 cents.
But sales fell 8.3 per cent to $1.24 billion from $1.36 billion. The profit increase was attributed to cost reductions and improved returns from transmission.
TransCanada is hoping to build a pipeline from Alaska to move Alaskan gas. It also hopes to ship northern gas on its Alberta gas system.
