Wednesday, Enbridge Inc. (ENB), a crude oil and natural gas distributor, reported a surge in first quarter earnings, benefiting from a tax gain on the sale of assets. Revenues, however, declined year-on-year.
The Calgary, Canada-based company's first quarter earnings applicable to common shareholders surged to $558.1 million or $1.53 per share from $251.3 million or $0.70 per share a year ago.
Adjusted earnings for the quarter were $269.4 million or $0.74 per share, up from $238.9 million or $0.67 per share in the same quarter last year.
Earnings for the quarter reflected a $329.0 million after-tax gain on the sale of the company's investment in OCENSA and allowance for equity funds used during construction in Liquids Pipelines.
Quarterly revenues slipped to C$3.783 billion from C$3.968 billion in the prior-year quarter.
Commodity sales resulted in revenues of $3.050 billion, compared to $3.244 billion a year ago, while transportation and other services revenue rose to $732.4 million from $723 million a year ago.
Patrick Daniel, president and chief executive officer, said, "We're pleased to start 2009 with strong performance across all of our business segments with results that position us well to achieve our guidance for adjusted earnings of 20% growth or $2.18 to $2.32 per share."
On May 5, 2009, the Enbridge Board of Directors declared quarterly dividends of $0.37 per common share and $0.34375 per Series A Preferred Share. Both dividends are payable on June 1, 2009 to shareholders of record on May 15, 2009.
Enbridge added that it remains on track for 10% plus average annual earnings growth through 2012 on the strength of bringing into service its current slate of Liquids Pipelines growth projects.
ENB closed Wednesday's trading at $32.96, up $0.49 or 1,51%, on a volume of about 0.38 million shares.
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