Enbridge reports better than expected Q3 profit, up 24% to C$345 million
Canada’s largest pipeline company, Enbridge Inc., posted better than expected third quarter profit on Wednesday. The company’s adjusted profit increased by 24 percent to C$345 million (or 41 cents a share) in the this quarter, well ahead of analysts predictions of 38 cents per share.
Revenue was down by around 8 percent to C$8.3 billion.
Enbridge is now set on reaching its earnings forecast for the full-year. However, the company suffered from delays associated with its Line 9 pipeline.
In October the company said that its Line 9 project, which will carry crude from Ontario to Montreal, would be delayed because of issues raised by the Canadian National Energy Board concerning valve placement.
In a conference call, Chief Executive Officer Al Monaco said he does not know when the Line 9 project will continue, adding that the company had submitted a detailed report outlining proper valve placement a couple of weeks ago.
“It’s clear from our second look that we should have done a much better job of explaining our approach to the placement of valves along the route. And the NEB, I think, was right to question us on it,”
“As far as we can begin operating the line…we won’t be able to determine that until the NEB concludes its work.”
Monaco said that customers are expressing increasing concern about declining crude prices.
“Nobody is jumping off a cliff just yet but obviously they are very concerned about prices and how they manage it over the next two to three years,”