Enbridge Inc., the largest transporter of Canadian crude to the U.S., reported a third-quarter profit, helped by higher volumes on its liquids pipelines and a smaller loss from derivatives contracts.
Net income was C$189 million ($191 million), or 24 cents a share, compared with a loss of C$5 million, or 1 cent, a year earlier, the Calgary-based company said in a statement today. Per-share profit excluding one-time items missed by a penny the 35-cent average of 15 analysts’ estimates compiled by Bloomberg.
Sales fell 7.8 percent to C$5.79 billion. Enbridge owns and operates Canada’s largest oil pipeline network spanning 24,738 kilometers (15,372 miles) and shipping 2.3 million barrels of crude and liquids a day. More production in Alberta and North Dakota increased demand for long-haul transit on the company’s Canadian Mainline and Spearhead Pipeline.
“North America is undergoing a transformation in crude oil and natural gas production, which is driving the need for significant new energy infrastructure,” Chief Executive Officer Al Monaco said in the statement. “Enbridge is in the middle of that transformation and we’re uniquely positioned to benefit from new and emerging opportunities in energy infrastructure development.”
Adjusted earnings for its liquids pipelines rose 27 percent to C$191 million for the quarter. The company’s net loss for contracts used to lock in commodity prices and foreign exchange rates fell to C$76 million from C$242 million a year earlier.
Enbridge is expanding and reversing pipeline routes to the U.S. Gulf Coast and to Canada’s eastern provinces to handle rising production from Alberta’s oil-sands and the Bakken Shale. The company is also proposing a conduit called Northern Gateway to transport bitumen to Canada’s Pacific coast, allowing producers to access Asian markets.
Enbridge fell 1.8 percent to C$39.39 at the close in Toronto, the second-best performance today among the six companies on the Bloomberg World Pipelines Index. The shares have gained 3.4 percent this year and have 14 buy, one hold and two sell ratings from analysts.