Enbridge Reports First Half Earnings of $348.8 Million
biz.yahoo.com
Wednesday August 2, 7:30 am ET
CALGARY, ALBERTA--(MARKET WIRE)--Aug 2, 2006 -- Enbridge Inc. (TSX:ENB.TO) (NYSE:ENB)
Highlights
- Adjusted operating earnings for the second quarter increase 24% to $118.7 million
- Adjusted operating earnings for the first half increase 9% to $328.2 million
- US$920 million Southern Lights diluent pipeline receives commitments exceeding the planned capacity
- US$350 million Southern Access Extension Project receives shipper support
- $250 million contract storage terminal to be constructed at Hardisty, Alberta
"Our financial results are again very strong, with second quarter adjusted operating earnings per share increasing markedly, which leaves us well positioned to meet our previously stated objectives for the year," said Patrick D. Daniel, President & Chief Executive Officer of Enbridge Inc. "Over the last few years we have announced a large number of projects that respond to increasingly strong industry fundamentals. These projects span an array of oil and gas transportation and storage opportunities and are in various stages of development."
Mr. Daniel added, "Most notably, Enbridge continues to develop new crude oil market access pipelines including our Gateway, Alberta Clipper and Southern Access projects as well as a variety of alternatives to move Canadian oil sands crude oil to the Gulf of Mexico. These initiatives and projects will ensure that our customers have sufficient access to the right markets at the right time. This robust slate of projects provides us with significant growth opportunities in our existing lines of business, where we have historically been very successful, and will enable us to generate superior returns to shareholders."
On August 1, 2006, the Enbridge Board of Directors declared quarterly dividends of $0.2875 per common share and $0.34375 per Series A Preferred Share. Both dividends are payable on September 1, 2006 to shareholders of record on August 15, 2006.
The Board of Directors also announced that it had accepted, with regret, the resignation of William R. Fatt, a Director since 2000, due to increasing commitments associated with Mr. Fatt's role as Chief Executive Officer of Fairmont Hotels & Resorts Inc.
Earnings applicable to common shareholders were $348.8 million for the six months ended June 30, 2006, or $1.03 per share, compared with $314.2 million or $0.93 per share in 2005. The $34.6 million increase in earnings was attributed to strong performance from the Enbridge crude oil mainline system and $48.9 million from the revaluation of future income tax balances due to tax rate reductions. These positive factors were partially offset by a lower contribution from the gas distribution utility, as weather in the Ontario market area was significantly warmer than normal.
Earnings applicable to common shareholders were $157.9 million for the three months ended June 30, 2006, or $0.47 per share, compared with $93.6 million, or $0.27 per share in 2005. The $64.3 million increase in earnings reflected similar factors as those identified in the six month analysis except the weather impact at the gas distribution utility was less significant as the second quarter is seasonally a quarter in which lower volumes are distributed. |
