Enbridge Q3 earnings disappoint

VANCOUVER (miningweekly.com) – Canadian oil and gas pipeline infrastructure operator Enbridge has reported an adjusted third-quarter profit of C$632-million, or C$0.39 a share, missing the average Bay Street analyst forecast calling for earnings of C$0.43 a share.

The Calgary, Alberta-based company reported net profit for the three months ended September of C$765-million, or C$0.47 a share, compared with a loss of C$103-million, or C$0.11 a share, in the same quarter last year, the company announced on Thursday.

Revenue in the quarter grew nearly 9% year-on-year to C$9.23-billion, up from $8.49-billion.

According to Enbridge, the greatest growth drivers for the period were the new natural gas, liquids and utility assets acquired in its takeover of Spectra Energy earlier this year.

The infrastructure operator advised that it also received a boost from stronger crude oil throughput on its Mainline system, new projects coming into service and stronger realised foreign exchange hedge rates.

These positive contributors were partially offset by lower natural gas gathering and processing volumes and margins related to lower natural gas prices and drilling activity in certain areas, as well as slightly weaker results in the Green Power Transmission and Energy Services segments. Financial impacts from the hurricanes in the Gulf Coast region and Florida were not material to the quarterly results, the company advised.

"Looking ahead to the fourth quarter, we anticipate a further acceleration of financial performance driven by increased liquids volumes, a full quarter of new projects in service, ongoing incremental synergy capture and momentum from the seasonal nature of our business, which typically strengthens in the winter months," president and CEO Al Monaco said in a press release.

Enbridge's TSX-listed equity fell nearly 5% on Thursday morning to an intraday low of C$46.95 a share.