(Reuters) - Enbridge Inc (ENB.TO), Canada’s largest pipeline company, reported a 12 percent rise in second-quarter adjusted profit due to higher contracted volumes and increased contribution from the Seaway pipeline.
The company has a 50 percent interest in the Seaway pipeline, operated by Enterprise Products Partners LP (EPD.N). The pipeline was reversed earlier this year to take crude from the Cushing, Oklahoma, oil hub to the Gulf Coast.
Enbridge’s net income attributable to common shareholders rose to C$42 million ($40.9 million), or 5 Canadian cents per share, from C$8 million, or 1 Canadian cent per share, a year earlier.
Adjusted profit rose to C$306 million, or 38 Canadian cents per share.
Calgary-based Enbridge’s pipelines carry the bulk of the 2.5 million barrels of oil that Canada sends daily to the United States.
Enbridge is seeking to expand its mainline system, the main artery for crude shipments to the U.S. Midwest.
The company is also seeking to build the controversial Northern Gateway pipeline system to carry Canadian crude to the country’s Pacific coast to handle rising production from the Alberta tar sands.
“The oil sands represent an area of significant growth opportunity for Enbridge,” said Chief Executive Al Monaco.
Enbridge said on Thursday it is on track to meet its adjusted earnings forecast range of $1.74 to $1.90 per share for the year.
The company’s shares closed at C$45.57 on the Toronto Stock Exchange on Wednesday.
Reporting by Nia Williams in Calgary and Bhaswati Mukhopadhyay in Bangalore; Editing by Sriraj Kalluvila