logo
Share SHARE
FONT-SIZE Plus   Neg

Enbridge Profit Edges Up, But Misses View; Backs 2012 Outlook

Canadian oil and gas pipelines operator Enbridge, Inc. (ENB,ENB.TO) reported Friday a profit for the fourth quarter that edged up from last year, reflecting higher revenues. However, adjusted earnings per share fell short of analysts' expectations, while quarterly revenues topped their estimates. The company also reaffirmed its earnings guidance for the full-year 2012.

The company's board also announced in December a 15 percent increase in quarterly dividend to $0.2825 per common share, effective March 1, 2012, citing Enbridge's continued strong growth. The dividend is payable on March 1 to shareholders of record on February 15, 2012.

Enbridge said it has increased its dividend by an average of 13 percent per year over the last five years.

Meanwhile, the company said it is also commented on its focus on safety. It has been further reinforcing safety and operational integrity across all Enbridge's business units through and will continue to be the company's top priority in 2012.

The Calgary, Canada-based company reported net earnings of C$335 million or C$0.44 per share for the fourth quarter, compared to C$326 million or C$0.43 per share in the prior-year quarter.

Excluding special items, earnings for the quarter increased to C$275 million or C$0.37 per share from C$238 million or C$0.32 per share in the year-ago quarter.

On average, ten analysts polled by Thomson Reuters expected the company to report earnings of C$0.39 per share for the fourth quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter surged to C$5.44 billion from C$4.14 billion in the same quarter last year, and topped four Wall Street analysts' consensus estimate of C$4.41 billion.

"Moreover, we remain confident that Enbridge can achieve an average annual growth rate in adjusted earnings per share of 10% through 2015, based on conservative assumptions for mainline throughput and future growth investment," said President and CEO Patrick Daniel in a statement.

Looking ahead to fiscal 2012, the company continues to expect adjusted earnings in a range of $1.58 to $1.74 per share. Street is currently looking for full-year 2012 earnings of $1.64 per share.

ENB closed Thursday's regular trading at $39.20, up $0.39 on a volume of 1.68 million shares. On the Toronto Stock Exchange, ENB.TO closed at C$39.20, down C$0.19 on a volume of 0.54 million shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Shares of Deutsche Bank AG are gaining more than 9 percent in pre-market activity on Wednesday following media reports that the German lender is considering buying back several billion euros of its senior bonds. The recovery in the bank's share price comes after two days of falls amid a broader rout of bank stocks due to concerns over their profitability and troubled loans. Time Warner Inc. (TWX) reported a profit for the fourth-quarter of 2015 that increased 19.4% from last year. But, quarterly revenues decreased about 6% from the prior year, due to a decline at Warner Bros., partially offset by increases at Home Box Office and Turner. The company increased its regular quarterly dividend by 15% to $0.4025 per share. Breakfast and snack food giant Kellogg Co. (K) continues to make great progress with its productivity initiatives. Hence, it remains confident in meeting its long-term targets for currency-neutral comparable net sales and operating profit growth in 2016 and beyond. However, negative currency translation impact that prevailed in the last few quarters is expected to continue in the fourth quarter.
comments powered by Disqus
RELATED NEWS
Trade ENB now with 
Follow RTT