Enbridge Q2 profits fall 47% as Alberta wildfires eat into production
Oilsands output in May and June down by an average of 255,000 barrels per day, 10% lower than before fires
Enbridge says the Fort McMurray wildfire catastrophe was a significant reason for a decline in its second-quarter earnings, which were down 47 per cent from the same time last year.
The Calgary-based pipeline company is reporting $301 million or 33 cents per share of net income for the period that included the evacuation of the northern Alberta city and a temporary shut-down of several oilsands operations.
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Enbridge says it took longer than originally anticipated for oilsands production to resume and average deliveries for the months of May and June were down by an average of 255,000 barrels per day — 10 per cent lower than just before the fires.
Enbridge's profit for the three months ended June 30 was down from $577 million or 68 cents per share in the second quarter of 2015. Revenue fell eight per cent to $7.94 billion from $8.63 billion.
The quarter included a $12-million after-tax expense for bringing pipelines and facilities back into services following the Alberta wildfires.
The company's profit was also affected by a $103-million after-tax impairment of its 75 per cent interest in Eddystone Rail in the Philadelphia area. It operates a rail-to-barge loading facility that's been affected by lower prices for the crude it handles.
The writedown was smaller than one reported in last year's second quarter, when it took a $167-million charge to goodwill related to a natural gas and gas liquids business.