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November 6th, 2015 
Awake Goy 
Print FriendlyAbove Photo: Enbridge reported a loss in the third quarter as one-time charges and a delay in startup of the Line 9 pipeline to Eastern Canada dragged on earnings. Derek Ruttan/The London Free Press/Postmedia Network.
Enbridge Inc. reported a loss in the third quarter as one-time charges and a delay in startup of a pipeline to Eastern Canada dragged on earnings.
Canada’s largest pipeline company reported net loss of $609 million (US$463 million), or 72 cents a share, compared with a loss of $80 million, or 10 cents, a year earlier, according to a statement Thursday. Excluding one-time items, per-share profit missed by 3 cents the 50-cent average of 13 analysts’ estimates compiled by Bloomberg.
Enbridge has been transferring assets to affiliates such as Enbridge Income Fund Holdings Inc. which contributed to $351 million in costs in the quarter, along with $654 million in one-time expenses related to changes in the value of derivatives. The delay of the reversal of Line 9, running from from southern Ontario to Quebec and initially expected to be in service in early 2015, and now will start deliveries in December, also contributed to lower adjusted earnings.
The pipeline operator plans to spend $38 billion through 2019 on new projects including liquids and natural gas lines, as well as power generation and gas processing. The expansion plans come as producers complete oil-sands projects already underway, contributing to rising oil output from Western Canada in the coming year.
“Demand for pipeline capacity has been strong and the scalable and flexible nature of our liquids mainline has enabled us to increase throughput,” Chief Executive Officer Al Monaco said in the statement.
Enbridge is focusing on expanding “low-cost, incremental” projects like twinning existing pipelines to provide producers with new transportation capacity as they struggle with low crude prices, Monaco told investors last month. The company’s $7.5-billion Line 3 replacement is the largest project.
Lines such as Flanagan South and Seaway Twin have expanded Canadian crude shipments to the Gulf Coast, and Enbridge also plans to expand in Colombia and Australia, in addition to purchasing renewable energy assets such as Thursday’s announcement of a stake in a North Sea wind farm. The Calgary-based company is also benefiting from increased demand from U.S. Gulf Coast refiners, the Canadian Association of Petroleum Producers said in June.
Canadian supplies reaching the largest U.S. refining centre will rise to 468,000 barrels a day by 2020 from 235,000 now, displacing imported volumes of heavy oil largely from Mexico and Venezuela, the association said.
Enbridge said it bought a 24.9 per cent stake in the Rampion offshore wind project in the U.K. for $750 million. The 400 megawatt windfarm is majority-owned by E.ON SE, the German electricity generator, and is expected to be fully operational in 2018.
Source Article from https://www.popularresistance.org/pipeline-delay-causes-609-million-loss-for-enbridge/
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