Canadian oil and gas pipelines operator Enbridge Inc. (ENB,ENB.TO) on Wednesday reported a 27 percent decline in profit for the first quarter, reflecting losses tied to the revaluation of financial derivatives related to the company's risk management activities.
However, adjusted earnings increased from last year. Looking ahead, the company reiterated its earnings outlook for fiscal 2012.
The decline in net earnings was primarily due to the recognition of net unrealized fair value loss of C$110 million from the revaluation of financial derivatives. The results also reflect lower earnings from Enbridge Gas Distribution or EGD due to warmer weather.
However, adjusted earnings rose from last year due to higher contributions from Canadian Mainline on strong volumes, and an increase in earnings from Enbridge Energy Partners, L.P.
Enbridge's first-quarter net earnings decreased to C$264 million or C$0.34 per share from C$364 million or C$0.48 per share in the year-ago period.
Adjusted earnings rose to C$376 million or C$0.50 per share from C$330 million or C$0.44 per share in the same period last year.
On average, ten analysts polled by Thomson Reuters expected the company to report earnings of C$0.48 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter grew 1.5 percent to C$6.63 billion from C$6.53 billion in the prior-year quarter. Commodity sales increased to C$4.84 billion from C$4.74 billion in the year-ago quarter. Analysts had a consensus revenue estimate of C$5.02 billion.
Looking ahead to fiscal 2012, Enbridge maintained its outlook for adjusted earnings in a range of C$1.58 to C$1.74 per share. Analysts expect the company to earn C$1.64 per share for the year.
In Wednesday's regular session on the NYSE, ENB is trading at $39.25, down $0.53 or 1.33 percent on a volume of 51,202 shares.
On the Toronto stock exchange, ENB.TO is trading at C$39.49, down C$0.21 or 0.53 percent on a volume of 48,047 shares.
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