Home / Mortgage Loans / Enbridge Inc reports $609-million loss as charges, Line 9 pipeline delay take toll
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Enbridge Inc reports $609-million loss as charges, Line 9 pipeline delay take toll

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.

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.

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