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Enbridge Sees Hit From Delay In Start Of Line 9 Pipeline

Enbridge Inc. (NYSE: ENB), Canada’s largest pipeline company, said Nov. 5 a delay in starting up a pipeline that will move crude from Ontario to Quebec will hurt its adjusted earnings for the year.

The company said it now expects full-year adjusted earnings to fall within the lower half of the estimated range of C$2.05 to C$2.35 per share.

Canadian regulators approved the additional test results of Enbridge Line 9 crude oil pipeline in September, clearing the way for the delayed 300,000 barrel-per-day (bbl/d) route to the east of the country.

The 639-km (400-mile) pipeline, which will replace supplies currently shipped by rail or imported from abroad, was expected to start operating in early 2015.

Calgary-based Enbridge’s adjusted earnings rose 15.7% to C$399 million (US$303.4 million), or 47 Canadian cents per share, in the third quarter ended Sept. 30, from a year earlier.

Analysts on average were expecting earnings of 48 cents per share, according to Thomson Reuters.

The company’s Mainline system, which moves the bulk of Canadian crude exports to the U.S., shipped an average of 2.2 MMbbl/d in the third quarter ended Sept. 30, compared with 2 MMbbl/d a year earlier.

Separately, Enbridge said on Nov. 5 it had bought a 24.9% stake in an offshore wind energy project in the U.K. for C$750 million. ($1 = C$1.32)

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