July 29, 2009 / 11:41 AM / in 9 years

UPDATE 1-Enbridge Q2 profit dips, ontrack for earns growth

*Adj Q2 EPS C$0.54 vs C$0.42

*Sees FY Adj EPS C$2.18-C$2.32 (Adds details)

TORONTO, July 29 (Reuters) - Enbridge Inc (ENB.TO) said on Wednesday its quarterly profit fell from last year, when it benefited from a huge gain on the sale of its stake in a Spanish pipeline.

Enbridge, Canada’s No. 2 pipeline company, also said it was on track to achieve the upper half of its full-year adjusted earnings outlook and an annual growth rate of greater than 20 percent.

The company sees full-year adjusted earnings in the range of between C$2.18 and C$2.32 per share.

The company, whose lines carry the majority of Canada’s crude oil exports to the United States, said second-quarter net income dropped to C$393 million ($362.1 million), or C$1.08 per share, from C$657.7 million, or C$1.81, in the second quarter of 2008.

The 2008 results included an aftertax gain of C$556.1 million on the sale of its interest in Compania Logistica de Hidrocarburos.

Adjusted earnings, excluding most one-time items, rose to C$194.5 million, or 54 Canadian cents per share, from C$149.5 million, or 42 Canadian cents.

Revenue fell 22.1 percent to C$2.59 billion.

The results beat the average analyst profit expectation of 49 Canadian cents, according to Reuters Estimates.

Despite the recession, Enbridge is in the midst of a C$12 billion expansion plan in order to ship more oil sands crude to U.S. refiners. Last week the company agreed to pay two-thirds of the $1.2 billion a U.S. affiliate had been expected to come up with for a portion of the company’s new 450,000-barrel-per-day Alberta Clipper pipeline.

The company said separately it reached agreement with Chevron Corp (CVX.N) for an extension of its central Gulf of Mexico offshore pipeline system. ($1=$1.09 Canadian) (Reporting by Scott Anderson; editing by Jeffrey Benkoe)

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