Enbridge Q3 profit up thanks to liquid pipes
Enbridge Inc. (TSX:ENB), the largest transporter of Canadian oil to the U.S., posted improved third-quarter results on Wednesday compared to the same period last year. Driven by recovered earnings from its liquids pipelines, the upswing also resulted from a reduced loss from derivatives contracts.
However, the Calgary-based company’s adjusted earnings fell just short of analyst estimates.
Net profit was $189 million or 24 cents per share, compared with a small net loss of $5 million or one cent a share last year. Enbridge's adjusted earnings rose to $269 million or 34 cents per share — up 13% from last year but a penny below analyst estimates.
Total revenue for the company reached $5.79 billion, down from $6.28 billion in 2011. Revenue from commodity sales was $4.65 billion, down from $5.16 billion.
The company also announced it would build, own and operate a deepwater crude oil pipeline in the Gulf of Mexico, but did not provide a price tag for the project.
Enbridge owns and operates Canada’s largest oil pipeline network spanning 24,738 kilometers, which transports 2.3 million barrels of liquid a day.
The firm has $18 billion worth of secured projects and an additional $17 billion of unsecured projects will help boost earnings growth as much as 12 percent through 2016.