Aug. 1 (Bloomberg) -- Enbridge Inc., the largest transporter of Canadian crude to the U.S., said second-quarter profit increased as demand to move oil on its pipeline network exceeded its capacity.
Net income rose to C$42 million ($40.8 million), or 5 cents a share, from C$8 million, or 1 cent, a year earlier, the Calgary-based company said in a statement on Marketwired today. Excluding one-time items, per-share profit missed the 39-cent average of 16 analysts’ estimates compiled by Bloomberg.
Rising production from Alberta’s oil sands has increased demand for infrastructure to move the crude to refiners. Enbridge is spending C$27 billion on pipeline and terminal projects it plans to have online by 2016, according to its website. The company said in May it had curtailed deliveries on its Seaway pipeline between the U.S. Gulf Coast and Cushing, Oklahoma, because some third parties weren’t able to take the product.
Earnings per share growth “should average between 10 percent and 12 percent through 2016 driven by secured projects, many of which are under construction,” Robert Kwan and Nelson Ng, Vancouver-based analysts for RBC Capital Markets, wrote in a July 18 note to investors.
The company’s pipeline network is Canada’s biggest, shipping more than 2.2 million barrels of crude and liquids a day on 24,738 kilometers (15,375 miles) of pipe, according to its website.
Enbridge fell 0.6 percent to C$45.57 yesterday in Toronto. The shares have 16 buy, two hold and two sell ratings from analysts, according to data compiled by Bloomberg.
(Enbridge has scheduled a conference call at 9 a.m. New York time, accessible at EVTS <GO>.)
To contact the reporter on this story: Gerrit De Vynck in Toronto at firstname.lastname@example.org
To contact the editor responsible for this story: Susan Warren at email@example.com