Enbridge boosts 2009 outlook after Q3 profit doubles

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(The Canadian Press)

By The Canadian Press

CALGARY - Enbridge Inc. (TSX: ENB.TO) says it's increasing its 2009 guidance after profit in the third-quarter more that doubled from a year ago.

The pipeline company's net income rose to $303.8 million, up from $148.4 million. Net earnings per share rose to 83 cents from 41 cents.

Adjusted earnings, which Enbridge says is a more accurate reflection of its profitability, rose to $152.3 million or 42 cents per common share, from $85.8 million or 24 cents.

The Calgary-based company said the strong third quarter has prompted it to raise its full-year guidance to a range of $2.30 to $2.36 in adjusted earnings per share, which would be up 20 per cent from last year.

Enbridge's profit far exceeded analyst estimates. According to Thomson Reuters, a consensus of 12 estimates had been for adjusted earnings of 38 cents per share, although at least one analyst had accurately predicted they'd be 42 cents.

For the full year, analysts had been expecting adjusted earnings in a range of $2.24 to $2.34.

On the downside, Enbridge revenues were down substantially in the third quarter from last year and missed analyst expectations by a wide margin.

Revenue declined to $2.63 billion from $4.37 billion, as a drop in commodity sales offset a gain in transportation and other services.

Four analysts who provided estimates to Thomson Reuters had, on average, called for revenue to be nearly $4 billion in the third quarter.