Enbridge hikes dividend, misses estimates
Canadian oil pipeline company Enbridge Inc. raised its dividend 15 per cent on Friday, despite missing analyst estimates for its fourthquarter earnings.
The Calgary-based company hiked its dividend to 28.25 cents a common share, effective March 1.
“Enbridge has increased its dividend by an average of 13 per cent a year over the last five years,” Patrick Daniel, chief executive with Enbridge, said in a statement.
“We remain confident that Enbridge can achieve an av- erage annual growth rate in adjusted earnings per share of 10 per cent through 2015, based on conservative assumptions for mainline throughput and future growth investment.”
For the quarter ended Dec. 31, Enbridge earned $335 million, or 44 cents a share, an increase of about three per cent. For the year, Enbridge posted a in profit of $991 million, or $1.30 a share, also a rise of three per cent.
Adjusted earnings, accounting for one-time and non-operating items, came in at $275 million, or 37 cents a share, up 15 per cent.
Enbridge’s adjusted earn- ings for the full year also crossed the $1-billion mark for the first time, to $1.1 billion, or $1.48 a share — a 13 per cent increase.
Chad Friess, analyst with UBS Investment Research, said Enbridge’s adjusted earnings missed consensus estimates of 39 cents a share and his forecast of 40 cents. “Impacting the quarter was much weaker than expected earnings from the Canadian mainline,” he said in a note to clients.
An increase in deliveries was more than offset by significant maintenance and integrity spending, including higher seasonal operating costs, he said.
“Mainline earnings of $72 million were 26 per cent below what we had modelled and down 14 per cent yearover-year,” he said.
Enbridge is currently focused on pushing through its Northern Gateway pipeline venture, which will see two pipelines constructed between British Columbia and Alberta. If successful, the project will open up access to key Asian markets. However, it faces stiff opposition from environmental and First Nations groups.
Enbridge also said it returned its 491,000 barrel-aday Line five oil pipeline to service after repairing a leak in Michigan.