Enbridge says Line 9 pipeline delay will put 2015 earnings at low end
Enbridge says delays in completing its Line 9 pipeline project through southern Ontario is having a negative effect on its profit this year.
The Calgary-based company says it now expects 2015 adjusted earnings to be at the low end of its previous estimates of between $2.05 and $2.35 per share of adjusted earnings.
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The company — which has a number of controversial pipeline projects in the works in different parts of Canada — says deliveries on Line 9 are now expected to begin in December.
The timing affects this year's earnings because Line 9 was expected to be in service early in 2015.
"We continue to remain confident in our ability to deliver solid growth for our shareholders over the long run. We recently rolled out our five-year strategic plan that now extends into 2019. That plan includes a significant $38 billion growth program, $24 billion of which is commercially secured and in execution," Enbridge CEO Al Monaco said in a statement.
"Our plan is expected to generate compound average annual adjusted earnings per share growth of 11 to13 per cent and compound average annual ACFFO per share growth of 15 to 18 per cent through 2019."
The project update was included in Enbridge's third-quarter financial report, which said its adjusted earnings were up from last year at $399 million or 45 cents per share. That was four cents per below analyst estimates of 49 cents per share.
Enbridge also reported a $609 million net loss in the quarter, which included several unusual and non-recurring factors as well as the impact of changing foreign exchange rates on its financial derivatives.
CNR updates plan for Horizon oilsands project
Canadian Natural Resources Ltd., another Calgary-based company struggling with the downturn in oil prices, said Thursday says it expects its 2016 cash flows will cover the cost of next year's capital budget of between $4.5 billion and $5 billion.
About half will be allocated to the Horizon oilsands expansion. Horizon's 2016 budget will be about $2.1 billion, falling to between $1.0 and $1.3 billion in 2017 as the expansion is completed.
"The third quarter was a very strong operational quarter, as we continue to make significant progress in reducing costs while maintaining effective, efficient and reliable operations across our business segments," said Canadian Natural's president Steve Laut in a release.
"Our disciplined approach has led to operating costs per barrel equivalent reductions in 2015 equating to approximately $945 million. At the same time our average production has increased 11% despite a very significant drop in capital program spending."
The company also announced its Board of Directors has declared a quarterly cash dividend on its common shares of C$0.23 per common share.