Enbridge Reports Third Quarter Adjusted Earnings of $241 Million or $0.32 Per Common Share
(firmenpresse) - CALGARY, ALBERTA -- (Marketwire) -- 11/09/11 -- HIGHLIGHTS
(all financial figures are unaudited and in Canadian dollars)
Enbridge Inc. (TSX: ENB) (NYSE: ENB) - "Enbridge's performance through the third quarter of 2011 continues to reflect strong growth and we are now trending to finish the year near or slightly above the top end of our adjusted earnings per share guidance range of $1.38 to $1.48," said Patrick D. Daniel, President and Chief Executive Officer. "Over the quarter, and year-to-date, we have also experienced significant cash flow growth that is strengthening our already solid financial position. This higher cash flow is being generated by the large suite of energy infrastructure projects that we have completed and placed into service over the last year; and there is more to come.
"Based on the $10 billion of growth projects we have secured and that are underway, coupled with the very large suite of growth opportunities, we remain confident of delivering a 10% average annual growth rate in adjusted earnings per share into the middle of this decade."
Third quarter 2011 results reflected unrealized non-cash mark-to-market accounting impacts, primarily related to the comprehensive long-term economic hedging program Enbridge has put in place to mitigate exposures to foreign exchange risks, including those exposures inherent within the new Competitive Toll Settlement (CTS). These kinds of short-term non-cash impacts to reported earnings are a by-product of Enbridge's hedging program, which over the long-term will support the Company's reliable cash flows and dividend growth.
Over the third quarter and beginning of the fourth quarter, Enbridge announced several growth projects in its liquids pipelines and gas transportation and processing businesses, as well as developments in renewable energy and power transmission.
In the oil sands region, the twinning of the Athabasca Pipeline, announced in early September, is designed to accommodate the need for additional capacity to serve Kirby area oil sands growth. At an estimated cost of $1.2 billion, the twin pipeline will have an initial capacity of approximately 450,000 barrels per day (bpd), with expansion potential to 800,000 bpd.
Expansion of Enbridge Energy Partners L.P.'s (EEP or the Partnership) Line 5 and reversal of the segment of Enbridge's Line 9 from Sarnia to Westover, announced in early October, will provide increased access to refineries in the U.S. upper midwest and in Ontario, Canada for light crude oil produced in western Canada and the U.S.
The Wrangler Pipeline, announced in late September, is a proposed joint venture project with Enterprise Products Partners that would transport crude oil from the oversupplied hub at Cushing, Oklahoma to the Texas Gulf Coast refining complex. Enbridge is also developing the Flanagan South Project proposal that would add additional capacity from its terminal at Flanagan, Illinois to Cushing.
During the quarter, Enbridge filed with the National Energy Board commercial agreements which set terms for long-term service on both the proposed Northern Gateway crude oil export pipeline and the condensate import pipeline. "Commercial support for the project from both Canadian oil producers and Asian markets reinforces the international importance of the project to Canada - facilitating access to world markets and international pricing for Canada's most valuable non-renewable resource," said Mr. Daniel.
In early October, Enbridge announced a substantial initial step in the execution of its strategy to establish a strong position in the Canadian Midstream natural gas business with the acquisition of a majority interest in the Cabin Gas Plant Development for approximately $900 million. Enbridge subsequently acquired an additional 13.3% interest in the development in early November, bringing its total interest to 71.0% and its investment to approximately $1.1 billion.
"Midstream gas infrastructure in western Canada is an area of excellent growth potential given the positive gas and natural gas liquids fundamentals. Our investment in the Cabin Gas Plant Development establishes our presence in the prolific Horn River natural gas play," said Mr. Daniel. "Phases 1 and 2 of Cabin are expected to generate an attractive, low-risk return and align very well with Enbridge's reliable business model. The investment also comes with growth potential from future development of phases 3 through 6."
Enbridge's power generation and new transmission business also marked milestones in the quarter. In September, Enbridge celebrated the opening of the Company's first U.S. wind project, the 250-megawatt Cedar Point project, ahead of schedule and under budget. In early October, Enbridge completed the acquisition of the Montana-Alberta Tie-Line (MATL) project.
"Power transmission represents an attractive opportunity for Enbridge with strong industry fundamentals and growth potential and the acquisition of the Montana-Alberta Tie-Line project is an excellent entry point," said Mr. Daniel. "The MATL project has great fundamentals in terms of the Montana to Alberta power price differential, is fully contracted and has low cost expansion potential. We plan to build on this initial base to continue to grow within the power transmission sector."
The announcement in early November of Enbridge's investment in the Lac Alfred Wind Project in Quebec grew the Company's interests in renewable and alternative generating capacity by more than 1,150 megawatts. "The Lac Alfred project marks Enbridge's entry into the growing Quebec wind energy market and advances our strategy to invest in renewable energy infrastructure as part of a sustainable power generation platform with sold returns, stable cash flow and environmental benefits," said Mr. Daniel.
In October, Enbridge transferred a portfolio of renewable energy assets to Enbridge Income Fund (the Fund) for $1.2 billion. The transfer enhanced the distributable cash flow of the Fund while providing Enbridge with a lower cost source of capital with which to fund these assets.
Mr. Daniel said the Company's future outlook continues to be encouraging.
"We have a much bigger and more broadly based suite of opportunities before us than the Company has ever had before," noted Mr. Daniel. "We have a record slate of liquids pipeline growth opportunities, a very buoyant gas pipeline and processing picture largely driven by shale gas plays, continuing opportunities to grow our renewable and alternative energy portfolio and excellent momentum within the power transmission sector.
"Underpinning our growth story is a strong balance sheet and financial flexibility that enables us to capture these opportunities, together with an uncompromising focus on operational safety and integrity across all of our operations and assets."
THIRD QUARTER 2011 OVERVIEW
For more information on Enbridge's growth projects and operating results, please see the Management's Discussion and Analysis (MD&A) which is filed on SEDAR and EDGAR and also available on the Company's website at .
DIVIDEND DECLARATION
On October 28, 2011, the Enbridge Board of Directors declared quarterly dividends of $0.245 per common share and $0.34375 per Series A Preferred Share. Both dividends are payable on December 1, 2011 to shareholders of record on November 15, 2011.
CONFERENCE CALL
Enbridge will hold a conference call on Wednesday, November 9, 2011 at 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time) to discuss the third quarter 2011 results. Analysts, members of the media and other interested parties can access the call at +857-350-1666 or toll-free at 1-866-804-6920 using the access code of 74708687. The call will be audio webcast live at . A webcast replay and podcast will be available approximately two hours after the conclusion of the event and a transcript will be posted to the website within 24 hours. The replay at toll-free 1-888-286-8010 or +617-801-6888 (access code 54567900) will be available until November 16, 2011.
The conference call will begin with a presentation by the Company's Chief Executive Officer and Chief Financial Officer followed by a question and answer period for investment analysts. A question and answer period for members of the media will immediately follow.
The unaudited interim Consolidated Financial Statements and MD&A, which contain additional notes and disclosures, are available on the Enbridge website at .
Enbridge Inc., a Canadian company, is a North American leader in delivering energy and one of the Global 100 Most Sustainable Corporations. As a transporter of energy, Enbridge operates, in Canada and the U.S., the world's longest crude oil and liquids transportation system. The Company also has a growing involvement in the natural gas transmission and midstream businesses, and is expanding its interests in renewable and green energy technologies including wind and solar energy, hybrid fuel cells and carbon dioxide sequestration. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company, and provides distribution services in Ontario, Quebec, New Brunswick and New York State. Enbridge employs approximately 6,400 people, primarily in Canada and the U.S., and is ranked as one of Canada's Greenest Employers and one of the Top 100 Companies to Work for in Canada. Enbridge's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit .
Forward-Looking Information
Forward-looking information, or forward-looking statements, have been included in this news release to provide the Company's shareholders and potential investors with information about the Company and its subsidiaries and affiliates, including management's assessment of Enbridge's and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to: expected earnings or adjusted earnings; expected earnings or adjusted earnings per share; expected costs related to projects under construction; expected in-service dates for projects under construction; expected capital expenditures; estimated future dividends; and expected costs related to leak remediation and potential insurance recoveries.
Although Enbridge believes that these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about: the expected supply and demand for crude oil, natural gas and natural gas liquids; prices of crude oil, natural gas and natural gas liquids; expected exchange rates; inflation; interest rates; the availability and price of labour and pipeline construction materials; operational reliability; customer project approvals; maintenance of support and regulatory approvals for the Company's projects; anticipated in-service dates; and weather. Assumptions regarding the expected supply and demand of crude oil, natural gas and natural gas liquids, and the prices of these commodities, are material to and underlie all forward-looking statements. These factors are relevant to all forward-looking statements as they may impact current and future levels of demand for the Company's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates, may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to expected earnings or adjusted earnings and associated per share amounts, or estimated future dividends. The most relevant assumptions associated with forward-looking statements on projects under construction, including estimated in-service dates, and expected capital expenditures include: the availability and price of labour and pipeline construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; and the impact of weather and customer and regulatory approvals on construction schedules.
Enbridge's forward-looking statements are subject to risks and uncertainties pertaining to operating performance, regulatory parameters, project approval and support, weather, economic and competitive conditions, exchange rates, interest rates, commodity prices and supply and demand for commodities, including but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
Non-GAAP Measures
This news release contains references to adjusted earnings/(loss), which represent earnings or loss attributable to common shareholders adjusted for non-recurring or non-operating factors on both a consolidated and segmented basis. These factors are reconciled and discussed in the financial results sections for the affected business segments. Management believes that the presentation of adjusted earnings/(loss) provides useful information to investors and shareholders as it provides increased transparency and predictive value. Management uses adjusted earnings/(loss) to set targets, assess performance of the Company and set the Company's dividend payout target. Adjusted earnings/(loss) and adjusted earnings/(loss) for each of the segments are not measures that have a standardized meaning prescribed by Canadian generally accepted accounting principles (Canadian GAAP) and are not considered GAAP measures; therefore, these measures may not be comparable with similar measures presented by other issuers.
(1) Comparative amounts were restated to reflect two-for-one stock split which was effective May 25, 2011.
(2) Adjusted earnings represent earnings attributable to common shareholders adjusted for non-recurring or non-operating factors. Adjusted earnings and adjusted earnings per common share are non-GAAP measures that do not have any standardized meaning prescribed by GAAP.
(3) Canadian Mainline includes deliveries in Western Canada and to the Lakehead System at the United States border as well as Line 8 and Line 9 in Eastern Canada.
(4) Volumes are for the Athabasca mainline and Waupisoo Pipeline and exclude laterals on the Regional Oil Sands System.
(5) Number of active customers is the number of natural gas consuming Enbridge Gas Distribution customers at the end of the period.
(6) Heating degree days is a measure of coldness that is indicative of volumetric requirements for natural gas utilized for heating purposes in Enbridge Gas Distribution's franchise area. It is calculated by accumulating, for the fiscal period, the total number of degrees each day by which the daily mean temperature falls below 18 degrees Celsius. The figures given are those accumulated in the Greater Toronto Area.
Forward-Looking Information
This news release contains forward-looking information. Significant related assumptions and risk factors are described under the Forward-Looking Information section of this news release.
Contacts:
Enbridge Inc.
Jennifer Varey
Media
(403) 508-6563 or Toll Free: 1-888-992-0997
Enbridge Inc.
Jody Balko
Investment Community
(403) 231-5720
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Datum: 09.11.2011 - 06:00 Uhr
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