Content
Liquids Pipelines
Liquids Pipelines consists of crude oil, natural gas liquids (NGLs) and refined products pipelines in Canada and the United States.
Earnings
(millions of Canadian dollars) |
2008 | 2007 | 2006 | |||||
| Enbridge System | 211.5 | 202.5 | 202.3 | |||||
| Athabasca System | 69.1 | 53.7 | 52.8 | |||||
| Spearhead Pipeline | 12.0 | 10.0 | 6.3 | |||||
| Olympic Pipeline | 7.1 | 9.9 | 6.5 | |||||
| Southern Lights Pipeline | 27.6 | 6.8 | – | |||||
| Feeder Pipelines and Other | 4.8 | 3.1 | 6.3 | |||||
| Adjusted Earnings | 332.1 | 286.0 | 274.2 | |||||
| Enbridge System – impact of tax changes | – | 1.2 | – | |||||
| Feeder Pipelines and Other – asset impairment loss | (4.1 | ) | – | – | ||||
| Earnings | 328.0 | 287.2 | 274.2 | |||||
Liquids Pipelines adjusted earnings were $332.1 million in 2008 compared with $286.0 million in 2007. The increase was due primarily to strong contributions from the Enbridge and Athabasca Systems, as well as the recognition of AEDC on Enbridge System and Southern Lights Pipeline.
While under construction, certain regulated pipelines are entitled to recognize AEDC in earnings. These amounts will contribute to earnings throughout the Company's significant growth period and will be collected in tolls once the pipelines are in service. The earnings impact of AEDC for the year ended December 31, 2008 was $17.8 million (2007 – $2.9 million) for Enbridge System and $27.6 million (2007 – $6.8 million) for Southern Lights Pipeline.
Liquids Pipelines adjusted earnings were $286.0 million in 2007 compared with $274.2 million in 2006. The increase was due primarily to strong contributions from Spearhead and Olympic Pipelines, as well as the recognition of AEDC on Southern Lights Pipeline.
Liquids Pipelines earnings were impacted by the following non-operating adjusting items:
- In the fourth quarter of 2008, the Company recorded an impairment loss of $4.1 million on Manyberries Pipeline, a small feeder pipeline located in Canada.
- Enbridge System was affected by favorable tax rate changes in 2007.
Liquids Pipelines revenues were $1,170.5 million in the year ended December 31, 2008, an increase of $79.6 million compared with $1,090.9 million in the year ended December 31, 2007. This increase is due to higher base tolls on Enbridge System and the new Waupisoo Pipeline included in the Athabasca System.
Revenues in the Liquids Pipelines segment increased to $1,090.9 million in the year ended December 31, 2007 from $1,048.1 million in the year ended December 31, 2006. The increased revenue was partially due to increased volumes on Spearhead Pipeline and higher tolls on Olympic Pipeline. In addition, revenue reflected full year contribution from Spearhead Pipeline and Olympic Pipeline.
|
Liquids Pipelines Adjusted Earnings |
Earnings |
 |
|