Enbridge profit soars on good pipeline performance

Profit soared in the third-quarter at Calgary-based Enbridge Inc. as a strong performance by its crude oil pipeline system and the Aux Sable natural gas processing plant balanced the negative impact of a stronger Canadian dollar and warmer-than-usual weather in the Ontario market.

Canada's largest pipeline and gas distribution company also benefited from a relatively quiet hurricane season in the United States, a year after hurricanes Katrina and Rita devastated natural gas facilities in the Gulf of Mexico.

These factors gave Enbridge profit of $95.5 million or 28 cents a share in the third-quarter this year, up from $67.8 million or 20 cents a share in the same period last year, as revenue soared to $2.2 billion from $1.7 billion.

Nine-month profit also rose sharply, to $444.3 million or $1.31 per share, compared with $382 million or $1.13 per share in the same period in 2005.

Given these results, Enbridge's president and chief executive officer Patrick Daniel confirmed his earlier profit projection of $1.65 to $1.75 per share for the year.

In his quarterly report, Daniel attributed the improvement in the bottom line to lower costs for lost oil in the mainline pipeline system, higher volumes of crude oil and strong margins in the natural gas gathering and processing businesses.

The Aux Sable processing plant also benefited from better margins.

Enbridge's share price rose by 24 cents to $38 on the Toronto Stock Exchange Wednesday, a day when the markets were reacting to a federal announcement that it would trim the tax benefits of income trusts.