TransCanada profit falls, Enbridge gains

By Scott Haggett

CALGARY, Alberta (Reuters) - Enbridge Inc (ENB.TO: Quote) and TransCanada Corp (TRP.TO: Quote), the two big Canadian pipeline companies whose fortunes are increasingly tied to Alberta's vast oil sands, posted divergent profit reports on Wednesday with the more oil-sands-focused Enbridge coming out on top.

Both companies are backing big expansions of their pipeline networks to carry rising production from the oil sands, the largest oil reserve outside the Middle East, to U.S. refiners.

After the economic crisis forced construction delays and deferrals, new projects to exploit the oil sands are getting back on track because of strengthening crude prices and signs of an economic rebound.

"We're encouraged by increasing signs of renewed activity in the oil sands as commodity prices have recovered," Pat Daniel, Enbridge's chief executive, said on a conference call on Wednesday.

The two companies are moving to boost their ability to ship rising production from the oil sands to the United States as U.S. imports from Mexico and Venezuela wane.

Enbridge's Alberta Clipper project and TransCanada's Keystone pipeline both target the U.S. Midwest refining market and, eventually, the massive concentration of refineries on the U.S. Gulf coast,

Enbridge, which ships the lion's share of Canada's oil exports to the United States, reported a better-than-expected third-quarter profit on Wednesday and raised its full-year adjusted earnings forecast on strength in its liquid pipelines and natural gas businesses.

Enbridge said net income more than doubled C$303.8 million ($286.6 million), or 83 Canadian cents a share, from C$148.4 million, or 41 Canadian cents, a year earlier.