Enbridge Profit Rises 56% on Hedging Contract Gain

Enbridge Inc. (ENB), the largest transporter of Canadian crude to the U.S., said first-quarter profit rose 56 percent as the company realized gains from hedging contracts and asset sales.

Net income climbed to C$390 million ($358 million), or 47 cents a share, from C$250 million, or 31 cents, a year earlier, the Calgary-based company said today in a statement on Marketwired. Excluding one-time items, Enbridge reported a 60-cent per-share profit, beating the 57-cent average of 13 analysts’ estimates compiled by Bloomberg.

Enbridge is seeking to benefit from rising demand to transport fuel as oil-sands output is set to almost triple to 5.2 million barrels a day by 2030, from 1.8 million in 2012, according to the Canadian Association of Petroleum Producers. Enbridge has said it plans to invest in C$36 billion worth of projects through 2017 to help meet that demand.

“In 2014 and 2015, we expect to place into service more than C$18 billion of projects to expand capacity and extend market access for our customers,” Chief Executive Officer Al Monaco said in the statement.

Adjusted earnings from its liquids pipeline division were down from the first three months of last year on lower tolls and the loss of income from Line 9B, which Enbridge is reversing and plans to have in service by the end of the year.

The company said one-time gains from its program to protect against swings in interest rates, currency exchange and commodity prices had the largest effect on quarterly results. It also reported a C$43 million boost from asset sales.

Enbridge reiterated its full-year adjusted earnings guidance of C$1.84 to C$2.04 a share.

The earnings were released before the start of regular trading on North American markets. Enbridge fell 0.1 percent to C$52.99 yesterday in Toronto. The stock, which has 14 buy, four hold and two sell recommendations from analysts, has gained 14 percent this year.

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

To contact the editors responsible for this story: Susan Warren at susanwarren@bloomberg.net Carlos Caminada, Tina Davis

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