Enbridge Profit Beats Estimates on Oil-Sands Transport

Enbridge Inc., Canada’s largest pipeline operator, reported third-quarter earnings that beat analysts’ estimates as it moved more crude from oil-sands projects.

Excluding one-time items, per-share profit exceeded the 38-cent average of 12 estimates compiled by Bloomberg. It’s the third consecutive quarter the Calgary-based company has reported earnings above estimates.

Canada sits on the world’s third-largest pool of recoverable oil reserves and currently exports almost all its crude to the U.S. Enbridge is expanding its pipeline system to carry more to markets, including building the C$6.5 billion ($5.7 billion) Northern Gateway project which would bring crude from Alberta’s oil sands to Pacific Coast terminals.

Chief Executive Officer Al Monaco plans C$44 billion of spending through 2018 to add and expand pipelines and build power plants. The projects will help Enbridge boost earnings per share 10 to 12 percent to 2018, Monaco said in a statement today.

Enbridge said the reversal and expansion of Line 9B has been delayed after the National Energy Board requested more information.

“That information has been provided,” the company said. “At this time, the company is unable to estimate the length of the delay.”

The results were released before the start of regular trading on North American markets. Enbridge has risen 13 percent this year. The stock has shrugged off the energy industry’s decline since June, when the price of oil began to drop.

The company today reported a net loss of C$80 million, or 10 cents a share, from hedging contracts, compared with a profit of C$421 million, or 51 cents, a year earlier.

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE