Enbridge First-Quarter Profit Falls on Commodity Contract Losses

Enbridge Inc. (ENB), the largest transporter of Canadian crude to the U.S., said first-quarter profit declined on derivative contract losses.

Net income fell to C$250 million ($249 million), or 31 Canadian cents a share, from C$261 million, or 34 cents, a year earlier, the Calgary-based company said in a statement distributed by Marketwired today. Excluding one-time items, per- share profit of 62 Canadian cents a share exceeded the 52-cent average of 15 analysts’ estimates compiled by Bloomberg.

Added production from Alberta’s oil sands and the Bakken Shale formation has prompted Enbridge to expand and reverse pipeline routes to refineries on the U.S. Gulf Coast and in Canada’s eastern provinces. The company’s Seaway pipeline, jointly owned with Enterprise Products Partners LP (EPD), is the only pipeline shipping crude to the Gulf coast from the Cushing, Oklahoma storage hub.

Enbridge and Enterprise last year reversed Seaway, a 500- mile (805-kilometer) pipeline that in the third quarter began bringing oil to Texas refineries.

Enbridge owns and operates Canada’s largest oil pipeline network, spanning 24,738 kilometers and shipping more than 2.2 million barrels of crude and liquids a day, according to its website. The company is investing C$15 billion in the next three years to add capacity for 1 million barrels of Alberta crude, Chief Executive Officer Al Monaco said in a speech in January.

The results were reported before the start of regular trading in North America. Enbridge rose 0.3 percent to C$47.55 at the close yesterday in Toronto. The shares have 13 buy, three hold and two sell ratings from analysts, according to data compiled by Bloomberg.

To contact the reporter on this story: Jeremy van Loon in Calgary at jvanloon@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net

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