Enbridge reports strong first quarter earnings.CALGARY Calgary (kăl`gərē), city (1991 pop. 710,677), S Alta., Canada, at the confluence of the Bow and Elbow rivers. The largest city in Alberta and the fastest-growing major city in Canada, Calgary is a corporate, transportation, and financial , Alberta Alberta (ălbûr`tə), province (2001 pop. 2,974,807), 255,285 sq mi (661,188 sq km), including 6,485 sq mi (16,796 sq km) of water surface, W Canada. -- Enbridge Enbridge TSX: ENB NYSE: ENB is a Calgary, Alberta based company which is focused on three core businesses: crude oil and liquids pipelines, natural gas pipelines, and natural gas distribution. The company has over 4,000 employees, mostly in Canada, the U.S. Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :ENB) (NYSE NYSE See: New York Stock Exchange :ENB) Highlights - Reported earnings increase to $220.6 million - Adjusted operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before increase 8% to $205.0 million - Continued encouraging progress on various oil and gas infrastructure growth initiatives - Spearhead reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its construction commences on receipt of regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approval "Enbridge's first quarter performance is strong and consistent with our expectations and previously noted full year adjusted operating earnings target of $3.20 to $3.30 per common share," said Patrick D. Daniel Daniel, book of the Bible Daniel, book of the Bible. It combines "court" tales, perhaps originating from the 6th cent. B.C., and a series of apocalyptic visions arising from the time of the Maccabean emergency (167–164 B.C. , President & Chief Executive Officer of Enbridge Inc. "Enbridge generated another solid quarter of earnings growth, with contributions from all business segments. Energy supply and demand fundamentals are very strong and we are advancing multiple projects for the mutual benefit of our customers and shareholders." "I am particularly pleased with the integration of the Enbridge Offshore Pipelines assets and personnel acquired from Shell at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. " added Mr. Daniel. "In the first quarter we consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: our interest in the Garden Banks pipeline Garden Banks Pipeline is a natural gas pipeline which gathers gas from the offshore Gulf of Mexico and brings it into Enbridge Pipelines UTOS system, which leads into Louisiana. It is owned by Enbridge. Its FERC code is 148. system and we plan to tie in other production to come on stream in later 2005 and 2006. The deep water Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east is expected to remain a prolific production area for many years to come, and we also expect to participate in future LNG LNG (liquefied natural gas): see under natural gas. regasification and delivery opportunities." Mr. Daniel concluded. "Our existing and proposed energy delivery infrastructure assets now target many of North America's developing energy basins, including Alberta oil sands, Texas tight gas and Alaskan gas, and are well positioned to contribute to Enbridge's continued growth." On May 5, 2005, the Enbridge Board of Directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. quarterly dividends of $0.50 per common share on a pre-split basis and $0.34375 per Series A Preferred Share. Both dividends are payable on June June: see month. 1, 2005 to shareholders of record on May 16, 2005. A proposed stock split is subject to shareholder approval at today's Special Today's Special was a children's television show produced by Clive VanderBurgh at TVOntario from 1981 to 1987. It also ran on Nickelodeon and the Faith and Values Channel (now the Hallmark Channel) as well as many PBS stations throughout the United States. and Annual Meeting and the record date for the stock split is expected to be May 20, 2005. Earnings applicable to common shareholders are $220.6 million for the three months ended March 31, 2005, or $1.31 per share, compared with $112.4 million, or $0.67 per share, in 2004. The $108.2 million increase in earnings is largely due to the change in the year-end of the gas distribution operations and the elimination of seasonal distribution rates. These factors create a lack of comparability between periods, including a significant increase in revenues, however comparable information is provided below. Other significant changes include the earnings from the recently acquired Enbridge Offshore Pipelines, lower interest expense and the absence of earnings from AltaGas which was sold in 2004.
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Consolidated Earnings
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Three months ended
(millions of Canadian dollars) March 31,
---------------------------------------------------------------------
2005 2004
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Liquids Pipelines 53.0 52.6
Gas Pipelines 18.3 13.0
Sponsored Investments 18.4 15.4
Gas Distribution and Services (1) 127.8 39.5
International 18.2 16.2
Corporate (15.1) (24.3)
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220.6 112.4
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(1) Consolidated earnings for 2005 reflect earnings from Enbridge Gas
Distribution (EGD), Noverco and Other Gas Distribution Operations
on a calendar year basis for the three months ended March 31,
2005; whereas, first quarter earnings for 2004 reflected earnings
from EGD, Noverco and Other Gas Distribution Operations on a
quarter lag basis for October 1, 2003 to December 31, 2003.
Effective December 31, 2004, EGD changed its fiscal year-end for
financial reporting purposes from September 30 to December 31.
Accordingly, the 2004 earnings from EGD, Noverco and Other Gas
Distribution Operations are not comparable to earnings for 2005.
Reconciliations are provided below.
Significant non-operating factors and variances affecting
consolidated earnings are as follows:
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Three months ended
(millions of Canadian dollars) March 31,
---------------------------------------------------------------------
2005 2004
---------------------------------------------------------------------
Sponsored Investments
Dilution gains on EEP unit issuance 4.6 0.9
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4.6 0.9
Gas Distribution and Services
Quarter lag earnings for the three
months ended December 31, 2003 (2) - 27.1
Calendar basis earnings for the three
months ended March 31, 2004 (2) - (152.3)
Colder than normal weather (2) 3.7 16.5
Seasonal distribution rates - 29.1
Dilution gain in Noverco
(Gaz Metro unit issuance) 7.3 -
Revalue future income taxes due to
tax rate changes - 0.6
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11.0 (79.0)
Total significant non-operating
factors and variances increasing/
(decreasing) earnings 15.6 (78.1)
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(2) Effective December 31, 2004, EGD's fiscal year end changed from
September 30 to December 31 and EGD is no longer consolidated on
a quarter lag basis. In order to compare 2004 earnings to 2005,
the 2004 first quarter earnings for EGD, Noverco and Other Gas
Distribution Operations, which were for the period October 1,
2003 to December 31, 2003, have been eliminated and second
quarter earnings, for the period January 1, 2004 to March 31,
2004, have been added. Other non-operating factors and variances
that affected these businesses in 2004 are for the period January
1, 2004 to March 31, 2004 as was reported in the Company's second
quarter results for 2004.
Significant operating factors affecting earnings in 2005 include the following: - Enbridge Offshore Pipelines, acquired December December: see month. 31, 2004, contributes positive earnings. - The Aux Sable sable, species of marten, Martes zibellina, found in Siberia, N European Russia, and N Finland. This carnivorous mammal is highly valued for its thick, soft fur, which is dark brown or black, sometimes with white underparts and sometimes flecked with silver. liquids extraction extraction /ex·trac·tion/ (eks-trak´shun) 1. the process or act of pulling or drawing out. 2. the preparation of an extract. plant reflects an improvement over the prior year due to improved fractionation fractionation /frac·tion·a·tion/ (frak?shun-a´shun) 1. in radiology, division of the total dose of radiation into small doses administered at intervals. 2. margins. - There are no earnings from AltaGas in 2005 as the investment was sold in 2004. - Corporate costs are lower primarily as a result of lower interest expense. The Company has foreign currency denominated earnings, primarily from U.S. based operations and investments, as well as its Euro investment in CLH CLH Hard Clam (FAO species code) CLH Compañía Logística de Hidrocarburos CLH, SA CLH California Lutheran Homes CLH Cleft-Limb-Heart Malformation Syndrome CLH Lufthansa Cityline Airlines (ICAO code) . The Company uses long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. net investment hedges to economically ec·o·nom·i·cal adj. 1. Prudent and thrifty in management; not wasteful or extravagant. See Synonyms at sparing. 2. Intended to save money, as by efficient operation or elimination of unnecessary features; economic: hedge a significant portion of the cash flows related to certain of these operations. However, this does not eliminate the earnings volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the due to exchange rate differences and the translation of these foreign currency denominated earnings for accounting purposes. During the first quarter of 2005, the Company received foreign currency denominated cash distributions and settled associated hedge transactions resulting in $4.4 million (2004 - $1.9 million) of incremental cash flows Incremental cash flows Difference between the firm's cash flows with and without a project. , which is not included in reported earnings. Non-GAAP Measures This news release contains a reference to adjusted operating earnings, which represent earnings applicable to common shareholders adjusted for non-operating factors. This is not a measure that has a standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. meaning prescribed pre·scribe v. pre·scribed, pre·scrib·ing, pre·scribes v.tr. 1. To set down as a rule or guide; enjoin. See Synonyms at dictate. 2. To order the use of (a medicine or other treatment). by Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) and is not considered a GAAP measure. Therefore, this measure may not be comparable to a similar measure presented by other issuers. Management believes that the presentation of adjusted operating earnings provides more useful information to investors and shareholders as it provides increased predictive value pre·dic·tive value n. The likelihood that a positive test result indicates disease or that a negative test result excludes disease. predictive value a measure used by clinicians to interpret diagnostic test results. and allows them to more accurately identify the trend in earnings.
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Three months ended
(millions of Canadian dollars) March 31,
---------------------------------------------------------------------
2005 2004
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GAAP earnings as reported 220.6 112.4
Non-operating factors and variances
as per above table (15.6) 78.1
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Adjusted Operating Earnings 205.0 190.5
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Liquids Pipelines
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Three months ended
(millions of Canadian dollars) March 31,
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2005 2004
---------------------------------------------------------------------
Enbridge System 38.9 41.2
Athabasca System 12.3 10.7
NW System 1.8 1.9
Feeder Pipelines and Other - (1.2)
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53.0 52.6
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- Enbridge System earnings include management's estimate of the
incentive tolling agreement renegotiation outcome as well as higher
revaluation oil losses associated with significant changes in crude
oil prices during the quarter. These decreases are partially offset
by an increase in Enbridge's share of the Terrace surcharge effective
April 1, 2004.
- The earnings variance in Feeder Pipelines and Other is the result
of Federal Energy Regulatory Commission ordered reparations on the
Frontier Pipeline, partially recorded in the first quarter of 2004.
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Gas Pipelines
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Three months ended
(millions of Canadian dollars) March 31,
---------------------------------------------------------------------
2005 2004
---------------------------------------------------------------------
Alliance Pipeline (US) 7.9 9.0
Enbridge Offshore Pipelines 6.0 -
Vector Pipeline 4.4 4.0
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18.3 13.0
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- Alliance Pipeline (US) earnings primarily reflect the impact of
the stronger Canadian dollar in 2005.
- Enbridge Offshore Pipelines was acquired on December 31, 2004 for
$754.0 million.
- Vector earnings were positively impacted by continued growth in
short haul firm transportation volumes, partially offset by the
impact of the stronger Canadian dollar in 2005.
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Sponsored Investments
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Three months ended
(millions of Canadian dollars) March 31,
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2005 2004
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Enbridge Energy Partners (EEP) 5.5 7.0
Enbridge Income Fund (EIF) 8.3 7.5
Dilution Gains 4.6 0.9
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18.4 15.4
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- EEP's 2005 results reflect various factors including slightly lower
operating earnings, a stronger Canadian dollar and a lower ownership
interest.
- EEP issued more partnership units in 2005 than 2004 and because
Enbridge did not fully participate in these offerings, dilution gains
resulted.
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Gas Distribution and Services
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Three months ended
(millions of Canadian dollars) March 31,
---------------------------------------------------------------------
2005 2004
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Enbridge Gas Distribution (1) 91.1 11.5
Noverco (1) 21.9 13.6
CustomerWorks/ECS 6.1 4.9
Other Gas Distribution Operations(1) 4.8 2.0
Enbridge Gas New Brunswick 1.0 1.1
Gas Services 0.9 (0.4)
Aux Sable 3.2 1.3
AltaGas Income Trust (investment sold in 2004) - 4.7
Other (1.2) 0.8
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127.8 39.5
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(1) Earnings for 2005 are on a calendar year basis for the three
months ended March 31, 2005; whereas, first quarter earnings for
2004 reflected earnings on a quarter lag basis for October 1,
2003 to December 31, 2003. Effective December 31, 2004, EGD
changed its fiscal year-end for financial reporting purposes from
September 30 to December 31. Accordingly, the 2004 earnings from
EGD, Noverco and Other Gas Distribution Operations are not
comparable to earnings for 2005. Reconciliations are provided
below.
- The higher earnings from Aux Sable are the result of improved fractionation margins. - The variance The discrepancy between what a party to a lawsuit alleges will be proved in pleadings and what the party actually proves at trial. In Zoning law, an official permit to use property in a manner that departs from the way in which other property in the same locality in Other is primarily the result of business development costs related to the proposed Rabaska LNG facility.
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Three months ended
(millions of Canadian dollars) March 31,
---------------------------------------------------------------------
2005 2004
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Enbridge Gas Distribution - as reported 91.1 11.5
Significant non-operating factors and variances:
quarter lag earnings for the three months ended
December 31, 2003(1) - (11.5)
calendar basis earnings for the three months
ended March 31, 2004(2) - 132.4
colder than normal weather (3.7) (16.5)
seasonal distribution rates - (29.1)
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87.4 86.8
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(1) These earnings are included in Enbridge's consolidated earnings
for the first quarter of 2004.
(2) These earnings are included in Enbridge's consolidated earnings
for the second quarter of 2004.
- The 2005 regulatory decision eliminated seasonal distribution rates, which were higher in the winter months and lower in the summer months, and replaced them witha uniform annual rate. Commencing in 2005, this shifts a portion of earnings from the winter months to the summer months. The seasonal distribution rate variance, noted in the above table, is the effect of applying the uniform rate to 2004 results and volumes.
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Three months ended
(millions of Canadian dollars) March 31,
---------------------------------------------------------------------
2005 2004
---------------------------------------------------------------------
Noverco - as reported 21.9 13.6
Significant non-operating factors and variances:
quarter lag earnings for the three months ended
December 31, 2003(1) - (13.6)
calendar basis earnings for the three months
ended March 31, 2004(2) - 15.0
dilution gain in Noverco (Gaz Metro unit
issuance) (7.3) -
---------------------------------------------------------------------
14.6 15.0
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(1) These earnings are included in Enbridge's consolidated earnings
for the first quarter of 2004.
(2) These earnings are included in Enbridge's consolidated earnings
for the second quarter of 2004.
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Three months ended
(millions of Canadian dollars) March 31,
---------------------------------------------------------------------
2005 2004
---------------------------------------------------------------------
Other Gas Distribution Operations - as reported 4.8 2.0
Significant non-operating factors and variances:
quarter lag earnings for the three months ended
December 31, 2003(1) - (2.0)
calendar basis earnings for the three months
ended March 31, 2004(2) - 4.9
---------------------------------------------------------------------
4.8 4.9
---------------------------------------------------------------------
---------------------------------------------------------------------
(1) These earnings are included in Enbridge's consolidated earnings
for the first quarter of 2004.
(2) These earnings are included in Enbridge's consolidated earnings
for the second quarter of 2004.
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International
---------------------------------------------------------------------
Three months ended
(millions of Canadian dollars) March 31,
---------------------------------------------------------------------
2005 2004
---------------------------------------------------------------------
CLH 11.6 9.8
OCENSA/CITCol 8.2 7.8
Other (1.6) (1.4)
---------------------------------------------------------------------
18.2 16.2
---------------------------------------------------------------------
---------------------------------------------------------------------
- Results from CLH reflect increased volumes due to greater demand
for refined products throughout Spain.
---------------------------------------------------------------------
Corporate
---------------------------------------------------------------------
Three months ended
(millions of Canadian dollars) March 31,
---------------------------------------------------------------------
2005 2004
---------------------------------------------------------------------
Corporate (15.1) (24.3)
---------------------------------------------------------------------
---------------------------------------------------------------------
- The $9.2 million decrease in corporate costs is primarily the result of lower interest expense partially related to the December 2004 redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. of preferred securities. Conference Call Enbridge will hold a conference call on May 5, 2005 at 9:30 a.m. Eastern time (7:30 a.m. Mountain time) to discuss the first quarter 2005 results. The call can be accessed at 1-800-901-5248, pass code of 44954330, and will be audio webcast live at www.enbridge.com/investor. An audio replay will be available shortly thereafter at 1-888-286-8010 using the access code 50611581; in addition, the webcast replay and transcript A generic term for any kind of copy, particularly an official or certified representation of the record of what took place in a court during a trial or other legal proceeding. A transcript of record will be available on the website, later in the day. The unaudited interim consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge and MD&A, which contain additional notes and disclosures, are available on the Enbridge website. Enbridge Inc. is a leader in energy transportation and distribution in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and internationally. As a transporter of energy, Enbridge operates, in Canada and the United States The United States and Canada share a unique legal relationship. U.S. law looks northward with a mixture of optimism and cooperation, viewing Canada as an integral part of U.S. economic and environmental policy. , the world's longest crude oil and liquids pipeline system. The Company also has international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. and a growing involvement in the natural gas transmission and midstream mid·stream n. 1. The middle part of a stream. 2. The part of a course that is neither at the beginning nor at the end: the midstream of life. Noun 1. businesses. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company, which provides distribution services in the provinces of Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. and Quebec Quebec, city, Canada Quebec, Fr. Québec, city (1991 pop. 167,517), provincial capital, S Que., Canada, at the confluence of the St. Lawrence and St. Charles rivers. , and in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of State; and is developing a gas distribution system for the Province of New Brunswick New Brunswick, province, Canada New Brunswick, province (2001 pop. 729,498), 28,345 sq mi (73,433 sq km), including 519 sq mi (1,345 sq km) of water surface, E Canada. . The Company employs approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 4,000 people, primarily in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. . Enbridge's common shares trade on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. in Canada and on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. in the United States under the symbol ENB. Information about Enbridge is available on the Company's website at www.enbridge.com. Certain information provided in this news release constitutes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Although Enbridge believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to operating performance, regulatory parameters, weather, economic conditions and commodity prices. You can find a discussion of those risks and uncertainties in our Canadian securities filings and American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of SEC filings. While Enbridge makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. , or should underlying assumptions prove incorrect Incorrect means to not be correct and may also refer to:
ENBRIDGE INC.
HIGHLIGHTS(1)
---------------------------------------------------------------------
Three months ended
(unaudited; millions of Canadian dollars, March 31,
---------------------------------------------------------------------
except per share amounts) 2005 2004
---------------------------------------------------------------------
FINANCIAL
Earnings Applicable to Common Shareholders
Liquids Pipelines 53.0 52.6
Gas Pipelines 18.3 13.0
Sponsored Investments 18.4 15.4
Gas Distribution and Services 127.8 39.5
International 18.2 16.2
Corporate (15.1) (24.3)
---------------------------------------------------------------------
220.6 112.4
---------------------------------------------------------------------
---------------------------------------------------------------------
Cash Provided By Operating Activities
Earnings plus charges/(credits)
not affecting cash 368.9 239.7
Changes in operating assets and liabilities 300.7 (47.6)
---------------------------------------------------------------------
669.6 192.1
---------------------------------------------------------------------
---------------------------------------------------------------------
Common Share Dividends 86.9 78.7
---------------------------------------------------------------------
---------------------------------------------------------------------
Earnings per Common Share 1.31 0.67
---------------------------------------------------------------------
---------------------------------------------------------------------
Dividends per Common Share 0.5000 0.4575
---------------------------------------------------------------------
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Weighted Average Common Shares Outstanding
(millions) 168.3 166.8
---------------------------------------------------------------------
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OPERATING
Liquids Pipelines(2)
Deliveries (thousands of barrels per day) 2,032 2,102
Barrel miles (billions) 172 185
Average haul (miles) 938 967
Gas Distribution and Services(3)
Volumes (billion cubic feet) 196 130
Number of active customers (thousands) 1,775 1,706
Degree day deficiency(4)
Actual 2,090 1,023
Forecast based on normal weather 1,962 937
---------------------------------------------------------------------
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(1) Highlights of Gas Distribution and Services for 2004 reflect the
results of Enbridge Gas Distribution (EGD) and other gas
distribution operations on a one-quarter lag basis for the three
months ended December 31, 2003. For 2005, as a result of EGD's
change in fiscal year end from September 30 to December 31,
Highlights reflect the results of EGD and other gas distribution
operations for the three months ended March 31, 2005.
(2) Liquids Pipelines operating highlights include the statistics of
the 11.2% owned Lakehead System and other wholly-owned liquid
pipeline operations.
(3) Gas Distribution and Services volumes and the number of active
customers are derived from the aggregate system supply and direct
purchase gas supply arrangements.
(4) Degree-day deficiency is a measure of coldness. It is calculated
by accumulating for each day in the period the total number of
degrees each day by which the daily mean temperature falls below
18 degrees Celsius. The figures given are those accumulated in
the Toronto area.
ENBRIDGE INC.
CONSOLIDATED STATEMENTS OF EARNINGS
---------------------------------------------------------------------
Three months ended
(unaudited; millions of Canadian dollars, March 31,
---------------------------------------------------------------------
except per share amounts) 2005 2004
---------------------------------------------------------------------
---------------------------------------------------------------------
Revenues
Gas sales 1,553.9 969.8
Transportation 545.5 409.0
Energy services 82.3 74.4
---------------------------------------------------------------------
2,181.7 1,453.2
---------------------------------------------------------------------
Expenses
Gas costs 1,395.7 854.9
Operating and administrative 259.4 202.3
Depreciation 143.3 110.5
---------------------------------------------------------------------
1,798.4 1,167.7
---------------------------------------------------------------------
Operating Income 383.3 285.5
Investment and Other Income 82.2 76.2
Interest Expense (135.3) (124.1)
---------------------------------------------------------------------
330.2 237.6
Income Taxes (107.9) (123.5)
---------------------------------------------------------------------
Earnings 222.3 114.1
Preferred Share Dividends (1.7) (1.7)
---------------------------------------------------------------------
Earnings Applicable to Common Shareholders 220.6 112.4
---------------------------------------------------------------------
---------------------------------------------------------------------
Earnings Per Common Share 1.31 0.67
---------------------------------------------------------------------
---------------------------------------------------------------------
Diluted Earnings Per Common Share 1.30 0.67
---------------------------------------------------------------------
---------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
---------------------------------------------------------------------
Three months ended
(unaudited; millions of Canadian dollars) March 31,
---------------------------------------------------------------------
---------------------------------------------------------------------
2005 2004
---------------------------------------------------------------------
Retained Earnings at Beginning of Period 1,840.9 1,511.4
Earnings Applicable to Common Shareholders 220.6 112.4
Common Share Dividends (86.9) (78.7)
---------------------------------------------------------------------
Retained Earnings at End of Period 1,974.6 1,545.1
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---------------------------------------------------------------------
ENBRIDGE INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
---------------------------------------------------------------------
Three months ended
(unaudited; millions of Canadian dollars) March 31,
---------------------------------------------------------------------
2005 2004
---------------------------------------------------------------------
Cash Provided By Operating Activities
Earnings 222.3 114.1
Charges/(credits) not affecting cash
Depreciation 143.3 110.5
Equity earnings in excess of cash
distributions (28.2) (31.7)
Gain on reduction of ownership interest (15.6) (2.5)
Future income taxes 37.1 49.0
Other 10.0 0.3
Changes in operating assets and liabilities 300.7 (47.6)
---------------------------------------------------------------------
669.6 192.1
---------------------------------------------------------------------
---------------------------------------------------------------------
Investing Activities
Acquisitions (42.7) (3.7)
Long-term investments (61.0) (16.2)
Additions to property, plant and equipment (83.1) (71.3)
Changes in construction payable 14.0 (5.2)
---------------------------------------------------------------------
(172.8) (96.4)
---------------------------------------------------------------------
Financing Activities
Net change in short-term borrowings
and short-term debt (701.8) (165.5)
Long-term debt issues 620.1 300.0
Long-term debt repayments (296.9) (150.0)
Non-recourse long-term debt repayments (4.3) (14.2)
Non-recourse long-term debt issues 6.8 -
Non-controlling interests (4.5) (0.6)
Common shares issued 27.4 19.5
Preferred share dividends (1.7) (1.7)
Common share dividends (86.9) (78.7)
---------------------------------------------------------------------
(441.8) (91.2)
---------------------------------------------------------------------
Increase in Cash 55.0 4.5
Cash at Beginning of Period 105.5 104.1
---------------------------------------------------------------------
Cash at End of Period 160.5 108.6
---------------------------------------------------------------------
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ENBRIDGE INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
---------------------------------------------------------------------
March 31, December 31,
(unaudited; millions of Canadian dollars) 2005 2004
---------------------------------------------------------------------
Assets
Current Assets
Cash 160.5 105.5
Accounts receivable and other 1,293.4 1,451.9
Inventory 503.2 791.6
---------------------------------------------------------------------
1,957.1 2,349.0
Property, Plant and Equipment, net 10,317.8 9,066.5
Long-Term Investments 1,924.6 2,278.3
Receivable from Affiliate 175.3 171.7
Deferred Amounts and Other Assets 783.0 729.2
Goodwill 359.7 31.5
Intangible Assets 250.2 133.9
Future Income Taxes 151.4 145.0
---------------------------------------------------------------------
15,919.1 14,905.1
---------------------------------------------------------------------
---------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current Liabilities
Short-term borrowings 272.2 650.6
Accounts payable and other 1,099.3 1,275.9
Interest payable 84.3 83.8
Current maturities and short-term debt 240.0 703.9
Current portion of non-recourse
long-term debt 71.1 30.2
---------------------------------------------------------------------
1,766.9 2,744.4
Long-Term Debt 6,514.8 6,053.3
Non-Recourse Long-Term Debt 1,715.0 665.2
Other Long-Term Liabilities 146.1 151.8
Future Income Taxes 937.1 797.3
Non-Controlling Interests 693.8 514.9
---------------------------------------------------------------------
11,773.7 10,926.9
Shareholders' Equity
Share capital
Preferred shares 125.0 125.0
Common shares 2,309.8 2,282.4
Contributed surplus 6.0 5.4
Retained earnings 1,974.6 1,840.9
Foreign currency translation adjustment (134.3) (139.8)
Reciprocal shareholding (135.7) (135.7)
---------------------------------------------------------------------
4,145.4 3,978.2
---------------------------------------------------------------------
15,919.1 14,905.1
---------------------------------------------------------------------
---------------------------------------------------------------------
SEGMENTED INFORMATION
Three months ended March 31, 2005
---------------------------------------------------------------------
(millions Gas
of Canadian Liquids Gas Sponsored Distribution
dollars) Pipelines Pipelines Investments and Services(1)
---------------------------------------------------------------------
Revenues 211.8 96.5 60.3 1,809.6
Gas costs - - - (1,395.7)
Operating and
administrative (74.2) (21.2) (13.2) (140.2)
Depreciation (37.2) (24.2) (17.5) (63.1)
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Operating income 100.4 51.1 29.6 210.6
Investment and
other income (0.8) - 20.7 26.6
Interest and
preferred equity
charges (24.3) (21.1) (15.5) (44.7)
Income taxes (22.3) (11.7) (16.4) (64.7)
---------------------------------------------------------------------
Earnings applicable
to common
shareholders 53.0 18.3 18.4 127.8
---------------------------------------------------------------------
---------------------------------------------------------------------
Three months ended March 31, 2005
---------------------------------------------------------------------
(millions of
Canadian dollars) International Corporate Consolidated
---------------------------------------------------------------------
Revenues 3.5 - 2,181.7
Gas costs - - (1,395.7)
Operating and
administrative (4.6) (6.0) (259.4)
Depreciation (0.3) (1.0) (143.3)
---------------------------------------------------------------------
Operating income (1.4) (7.0) 383.3
Investment and other income 20.1 15.6 82.2
Interest and preferred
equity charges - (31.4) (137.0)
Income taxes (0.5) 7.7 (107.9)
---------------------------------------------------------------------
Earnings applicable
to common shareholders 18.2 (15.1) 220.6
---------------------------------------------------------------------
---------------------------------------------------------------------
Three months ended March 31, 2004
---------------------------------------------------------------------
(millions Gas
of Canadian Liquids Gas Sponsored Distribution
dollars) Pipelines Pipelines Investments and Services(1)
---------------------------------------------------------------------
Revenues 204.9 67.5 - 1,173.4
Gas costs - - - (854.9)
Operating and
administrative (68.1) (12.8) - (107.9)
Depreciation (35.9) (16.8) - (56.7)
---------------------------------------------------------------------
Operating income 100.9 37.9 - 153.9
Investment and
other income 1.0 0.2 25.6 21.8
Interest and
preferred equity
charges (25.0) (16.8) - (43.0)
Income taxes (24.3) (8.3) (10.2) (93.2)
---------------------------------------------------------------------
Earnings applicable
to common
shareholders 52.6 13.0 15.4 39.5
---------------------------------------------------------------------
---------------------------------------------------------------------
Three months ended March 31, 2004
---------------------------------------------------------------------
(millions of
Canadian dollars) International Corporate Consolidated
---------------------------------------------------------------------
Revenues 7.4 - 1,453.2
Gas costs - - (854.9)
Operating and administrative (9.0) (4.5) (202.3)
Depreciation (0.4) (0.7) (110.5)
---------------------------------------------------------------------
Operating income (2.0) (5.2) 285.5
Investment and other income 19.3 8.3 76.2
Interest and preferred
equity charges - (41.0) (125.8)
Income taxes (1.1) 13.6 (123.5)
---------------------------------------------------------------------
Earnings applicable
to common shareholders 16.2 (24.3) 112.4
---------------------------------------------------------------------
---------------------------------------------------------------------
(1) Gas Distribution and Services results for 2004 were consolidated on a one-quarter-lag basis and therefore reflect the period from October October: see month. 1, 2003 to December 31, 2003. Starting at the end of 2004, EGD Esophagogastroduodenoscopy (EGD) An imaging test that involves visually examining the lining of the esophagus, stomach, and upper duodenum with a flexible fiberoptic endoscope. Mentioned in: Bleeding Varices EGD esophagogastroduodenoscopy. changed its fiscal year end from September September: see month. 30 to December 31. Therefore, the quarter lag basis of consolidation was eliminated.Gas Distribution and Services results for 2005 reflect the period from January January: see month. 1, 2005 to March 31, 2005. Enbridge Inc. (TSX:ENB) (NYSE:ENB) |
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