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Press release from Marketwire

Enbridge Income Fund Holdings Inc. Announces First Quarter Results; Declares Monthly Dividend

Monday, May 07, 2012

Enbridge Income Fund Holdings Inc. Announces First Quarter Results; Declares Monthly Dividend12:45 EDT Monday, May 07, 2012CALGARY, ALBERTA--(Marketwire - May 7, 2012) -HIGHLIGHTSThe Company's first quarter earnings totaled $14.3 million ($0.36 per common share). The Fund's first quarter earnings were $17.7 million. The Fund's cash available for distribution (CAFD) was $56.3 million, a 78% increase over the first quarter of 2011, reflecting the first full quarter of contributions from the Renewable Assets. Monthly dividend of $0.103 per common share declared by the Company's Board of Directors to be paid on June 15, 2012. Enbridge Income Fund Holdings Inc. (TSX:ENF) (ENF or the Company) announced today earnings of $14.3 million, or $0.36 per common share, for the three months ended March 31, 2012, reflecting the performance of its investment in Enbridge Income Fund (the Fund).The Company's financial performance is a direct reflection of the Fund's ability to generate cash for distribution to its unitholders. The Fund's cash available for distribution (CAFD) totaled $56.3 million for the first quarter of 2012, an increase of 78% compared with the same period of 2011. The improvement in CAFD reflected the first full quarter of contributions from the 190-MW Ontario Wind Project, 99-MW Talbot Wind Project and 80-MW Sarnia Solar Project (the Renewable Assets) which were acquired in October of 2011. "We are off to a good start in 2012," said John Whelen, President, Enbridge Income Fund Holdings Inc. "The Company's solid results this quarter reflect steady performance from each of our three core businesses. Our new portfolio of renewable power generation assets is proving to be a great new source of low risk cash flow for the Fund. The assets performance thus far has consistently met or exceeded our expectations at the time of the acquisition."While the acquisition of the Renewable Assets has served to significantly increase cash flows generated by the Fund, there is still more growth on the near-term horizon", continued Mr. Whelen. "We are making great progress with our Bakken Expansion Program which will enable delivery of growing crude oil production from the highly prolific Bakken play in North Dakota to the Enbridge Inc. mainline at Cromer, Manitoba. The Fund is building the Canadian portion of this project. Approval has been received from the NEB to construct the Canadian facilities and we expect that these new facilities will be in service and generating incremental cash flow for the Fund early in 2013," concluded Mr. Whelen. On May 7, 2012, the Company's Board of Directors declared a monthly cash dividend of $0.103 per common share to be paid on June 15, 2012 to shareholders of record at the close of business on May 31, 2012. FIRST QUARTER 2012 REVIEWThe unaudited interim financial statements and Management's Discussion and Analysis (MD&A) of both ENF and the Fund, which contain additional notes and disclosures, are available on the Company's website at www.enbridgeincomefund.com.The Company's earnings for the three months ended March 31, 2012 were $14.3 million ($0.36 per common share) compared with $6.8 million ($0.27 per common share) for the three months ended March 31, 2011. The earnings increase is attributable to increased ownership in the Fund and an increase in per unit distributions received on such investment. During the first three months of 2012, the Company owned 80.7% of the Fund's issued and outstanding trust units (which represents a 30.8% overall economic interest in the Fund, with the balance held by Enbridge Inc.) and received distributions of $0.121 per unit per month whereas during the three months ended March 31, 2011 the Company owned 72.6% of the Fund's trust units (27.7% economic interest) and received distributions equivalent to $0.115 per unit per month. The Fund's cash available for distribution (CAFD) for the three months ended March 31, 2012 was $56.3 million, an increase of 78% over the same period of 2011. The increase was primarily driven by cash contributions from the Renewable Assets which were acquired in October 2011. The Renewable Assets benefited from high operational availability and strong wind and solar resource in the quarter. The Fund's liquids transportation and natural gas transmission assets continued to deliver stable and predictable cash flows in the first quarter of 2012, with both Saskatchewan System CAFD of $19.2 million and Alliance Canada CAFD of $18.2 million comparable to the first quarter of the prior year. The Fund's earnings for the three months ended March 31, 2012 were $17.7 million. Relative to the first quarter of 2011, earnings have increased due to the Renewable Assets, net of a related increase in financing costs and an increase in non-cash deferred income taxes. The Fund issued $300 million of medium term notes maturing in February 2019 and $200 million of medium term notes maturing in February 2022. The gross proceeds of $500 million were used to repay the outstanding balance of a loan from Enbridge that was provided in connection with the acquisition of the Renewable Assets.The Company's Board of Directors declared and paid monthly dividends of $0.103 per common share for each of January, February and March 2012. In addition, monthly dividends of $0.103 per common share were declared on April 16, 2012 and on May 7, 2012 for payment to shareholders on May 15, 2012 and June 15, 2012, respectively. ABOUT ENBRIDGE INCOME FUND HOLDINGS INC. Enbridge Income Fund Holdings Inc. is a publicly traded corporation. The Company, through its investment in Enbridge Income Fund, holds high quality, low risk energy infrastructure assets. The Fund's assets include a 50% interest in the Canadian segment of the Alliance Pipeline, a 100% interest in the various pipelines comprising the Saskatchewan System, and interests in more than 400 megawatts of renewable and alternative power generation capacity. Information about Enbridge Income Fund Holdings Inc. is available on the Company's website at www.enbridgeincomefund.com. FORWARD LOOKING INFORMATIONIn the interest of providing the Company's shareholders and potential investors with information about the Company and its investee, the Fund, and the Fund's subsidiaries and joint ventures, including management's assessment of the Company's and the Fund's future plans and operations, certain information provided in this News Release constitutes forward-looking statements or information (collectively, "forward-looking statements"). This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe" and similar words suggesting future outcomes or statements regarding an outlook. In particular, forward-looking statements include:expected costs related to projects under construction;expected scope and in-service dates for projects under construction;expected timing and amount of recovery of capital costs of assets;expected capital expenditures; expected future dividends and Fund distributions;the Fund's expected cash available for distribution.Although the Company believes that these forward-looking statements are reasonable based on the information available on the date such statements are made and processes are used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about: the expected supply and demand for crude oil, natural gas and natural gas liquids; prices of crude oil, natural gas and natural gas liquids; expected exchange rates; inflation; interest rates; the availability and price of labour and pipeline construction materials; operational reliability; customer project approvals; maintenance of support and regulatory approval for the Fund's projects; anticipated in-service dates and weather. Assumptions regarding the expected supply and demand of crude oil, natural gas and natural gas liquids, and the prices of these commodities, are material to and underlay all forward-looking statements. These factors are relevant to all forward-looking statements as they may impact current and future levels of demand for the Fund's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company and the Fund operate, may impact levels of demand for the Fund's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to expected earnings and associated per unit or per share amounts, or estimated future distributions or dividends. The most relevant assumptions associated with forward-looking statements on projects under construction, including estimated in-service dates and expected capital expenditures, include: the availability and price of labour and pipeline construction materials; the effects of inflation on labour and material costs; the effects of interest rates on borrowing costs; and the impact of weather and customer and regulatory approvals on construction schedules. The Company's forward-looking statements, and forward looking statements with respect to the Fund, are subject to risks and uncertainties pertaining to operating performance, regulatory parameters, project approval and support, weather, economic conditions, exchange rates, interest rates and commodity prices, including but not limited to those risks and uncertainties discussed in this News Release and in the Company's and the Fund's other filings with Canadian securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and the Company's and the Fund's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by law, the Company and the Fund assume no obligation to publicly update or revise any forward-looking statements made in this News Release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements whether written or oral, attributable to the Company or the Fund or persons acting on the Company's or the Fund's behalf, are expressly qualified in their entirety by these cautionary statements.NON-GAAP MEASURESThis News Release contains references to the Fund's cash available for distribution. Cash available for distribution represents the Fund's cash available to fund distributions on trust units and ECT preferred units as well as for debt repayments and reserves. This measure is important to shareholders as the Company's objective is to provide a predictable flow of dividends to shareholders and the Company's cash flows are derived from its investment in the Fund. Cash available for distribution is not a measure that has standardized meaning prescribed by United States Generally Accepted Accounting Principles (U.S. GAAP) and is not considered a GAAP measure. Therefore, this measure may not be comparable with similar measures presented by other issuers. The Fund's Cash Available for Distribution reconciliation is as follows:Three months ended,March 31,20122011(millions of Canadian dollars)Cash provided by operating activities45.557.4Add/(deduct):Renewables pre-Acquisition cash flows1-(27.9)Green Power maintenance capital expenditures(0.2)-Green Power cash distributed/(retained)0.2(0.2)Saskatchewan System maintenance capital expenditures(1.7)(0.7)Change in operating assets and liabilities in the period12.53.1Cash available for distribution56.331.71Green Power earnings for all 2011 periods have been retrospectively adjusted to furnish comparative information related to the October 2011 acquisition of the Renewable Assets. The impact of the retrospective adjustments has been eliminated from CAFD as these cash flows were not available to distribute to unitholders. SELECTED FINANCIAL AND OPERATING HIGHLIGHTSENBRIDGE INCOME FUND HOLDINGS INC.Three months ended March 31,20122011(millions of Canadian dollars, except share and per share amounts)Earnings14.36.8Earnings per common share, basic and diluted$0.36$0.27Cash provided by operating activities11.7-Dividends declared12.37.2Dividends per common share$0.309$0.288Number of common shares outstanding39,741,00025,125,000ENBRIDGE INCOME FUND1Three months ended March 31,201220113(millions of Canadian dollars, except unit and per unit amounts)EarningsGreen Power23.416.6Saskatchewan System12.211.2Alliance Canada12.913.5Corporate(30.8)(14.6)17.726.7Cash available for distribution2Green Power36.01.4Saskatchewan System19.218.9Alliance Canada18.219.6Corporate(17.1)(8.2)56.331.7Cash provided by operating activities45.557.4Cash distributions declared37.425.2Distributions per trust unit and ECT preferred unit$0.362$0.346Number of units outstandingECT preferred units54,074,75038,023,750Trust units49,241,00034,625,000Average daily volumesGreen Power (thousands of megawatt hours produced)Ontario Wind Project3172.2147.0Talbot Wind Project398.880.3Sarnia Solar Project323.021.8NRGreen19.619.4Wind Power Joint Ventures427.224.2Saskatchewan System (thousands of barrels per day)Westspur System215.2200.6Saskatchewan Gathering System146.1140.0Weyburn System31.831.6Virden System24.715.8Alliance Canada (millions of cubic feet per day)1,632.01,677.01Financial Highlights for Enbridge Income Fund have been extracted from financial statements prepared in accordance with United States generally accepted accounting principles. 2See Non-GAAP Measures.3Green Power earnings and power production for all 2011 periods have been retrospectively adjusted to furnish comparative information related to the October 2011 acquisition of the Renewable Assets. The impact of the retrospective adjustments has been eliminated from CAFD as these cash flows were not available to distribute to unitholders. 4Wind Power Joint Ventures is comprised of the Fund's interest in the Sunbridge, Magrath and Chin Chute wind projects.FOR FURTHER INFORMATION PLEASE CONTACT: Jennifer VareyEnbridge Income Fund Holdings Inc.Media(403) 508-6563jennifer.varey@enbridge.comORInvestment CommunityEnbridge Income Fund Holdings Inc.Teri Majer(403) 508-3185teri.majer@enbridge.com