Higher shipment volumes drive Enbridge's profit beat
(Reuters) - Enbridge Inc (ENB.TO: Quote), Canada's largest pipeline company, reported a better-than-expected profit in the second quarter, driven mainly by higher shipment volumes on the Canadian Mainline and regional oil sands systems.
Enbridge benefited from a 23 percent rise in average deliveries on the Canadian Mainline to 1.96 million barrels per day (bpd).
Deliveries on the regional oil sands system, comprising the Athabasca mainline and Waupisoo pipeline, soared nearly 72 percent to 690,000 bpd.
Higher throughput on the Athabasca mainline and contributions from new projects coming into service, in particular the Norealis pipeline, pushed up volumes on the regional oil sands system, Enbridge said on Friday.
Construction of the Seaway Twin expansion is now mechanically complete and the company expects to complete the Flanagan South project this fall, Enbridge said.
Enbridge also re-affirmed its full-year adjusted earnings forecast of C$1.84-C$2.04 per share.
The company's adjusted earnings rose to C$328 million ($299.95 million), or 40 Canadian cents per share, in the quarter ended June 30, from C$306 million, or 38 Canadian cents per share, a year earlier. (bit.ly/1kaMBlL)
Analysts on average were expecting a profit of 39 Canadian cents per share, according to Thomson Reuters I/B/E/S.
Earnings attributable to shareholders rose to C$756 million, or 91 Canadian cents per share in the quarter, from C$42 million, or 5 Canadian cents per share, a year earlier, as the company benefited from non-recurring changes in derivative fair value. Continued...