Enbridge Increases Quarterly Earnings 90%
Enbridge has posted its third quarter results with significantly higher revenue and operating earnings that have contributed to the company's growth.
- Third quarter earnings increased 90% to $148 million.
- Third quarter adjusted operating earnings increased 9% to $86 million.
- Nine month earnings increased 134% to $1,057 million.
- Nine month adjusted operating earnings increased 8% to $474 million.
- Project financing of $1.7 billion secured for Southern Lights Pipeline.
- Construction began on the Canadian portion of the Alberta Clipper Project, the Line 4 Extension Project and the Spearhead Pipeline Expansion Project.
- Ultra green fuel cell power recovery unit completed.
"Enbridge's solid third quarter performance, with significant growth in reported earnings and adjusted operating earnings, demonstrates clearly that our investor value proposition positions us as a 'safe haven' in turbulent times," said Patrick D. Daniel, President and Chief Executive Officer.
"We remain confident that adjusted operating earnings per share for 2008 will be within the previously communicated guidance range of $1.85 to $1.95, despite the effect of Hurricane Ike and recent declines in energy commodity prices. We also expect to achieve a 10% plus average annual growth rate in adjusted operating earnings per share from 2007 through 2012. With the recently secured $1.7 billion Southern Lights project financing, $3.4 billion in available liquidity, and our strong credit rating, Enbridge has adequate liquidity and financial flexibility to maintain our growth plans even with difficult financial markets.
"Our 'wave one' construction activity on projects including Southern Access, Alberta Clipper, Line 4 Extension and Southern Lights, is well underway and generally on time and on budget," continued Daniel. "Looking ahead to 'wave two', we continue to work towards gaining commercial support for our phased approach to deliver Canadian crude oil to U.S. Gulf Coast markets. Our strategy, which is to use existing pipelines and rights-of-way where possible, would minimize our capital costs and the financial commitments required by shippers while providing access to the market on the schedule that best meets their needs.
"I am also pleased with the progress on another of our environmental sustainability initiatives, the completion of construction of our first hybrid turbo expander/fuel cell ultra green electric power recovery unit. This is a promising technology for which Enbridge has a leading role and exclusive North American distribution rights," concluded Mr. Daniel. "It builds on our leadership role with respect to windpower and CO2 sequestration development."
On November 4, 2008, the Enbridge Board of Directors declared quarterly dividends of $0.33 per common share and $0.34375 per Series A Preferred Share. Both dividends are payable on December 1, 2008 to shareholders of record on November 14, 2008.
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