🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

UPDATE 2-Canada's Enbridge mulls up to $4.5 bln in extra divestitures

Published 2016-11-03, 01:30 p/m
© Reuters.  UPDATE 2-Canada's Enbridge mulls up to $4.5 bln in extra divestitures
SEP
-
NG
-
ENB
-

(Recasts throughout, adds quotes)

By Nia Williams

CALGARY, Alberta, Nov 3 (Reuters) - Enbridge Inc ENB.TO , Canada's largest pipeline company, said on Thursday it has identified C$5 billion to C$6 billion ($3.74 billion to $4.49 billion) in potential asset sales, on top of an already announced C$2 billion divestiture target.

Speaking on a quarterly earnings call, chief executive Al Monaco said any of the additional divestitures would be "opportunistic" and dependent on a number of factors including valuation.

In September Calgary-based Enbridge set a target of C$2 billion in asset sales over 12 months. A few weeks later, as part of that strategy, it said it would sell its South East Saskatchewan system for just over C$1 billion in cash to Tundra Energy Market Ltd. asset sales come after Enbridge agreed in September to buy Spectra Energy Corp (NYSE:SE) SE.N in a deal, valued at $28 billion, to create the largest North American energy infrastructure company. Monaco said the acquisition was on track to close in the first quarter of 2017.

"We are essentially bringing together the best liquids and natural gas franchises on the continent under one roof, and in today's environment, the inherent value of these assets in the ground is increasing because these systems simply can't be replicated today," he said, referring to the Spectra deal.

Like its peers, Enbridge has struggled to get regulatory approval to build new crude pipelines such as its Northern Gateway line from Alberta's oil sands to Canada's Pacific Coast.

The company is currently awaiting U.S. and Canadian approval to replace its Line 3 pipeline that runs from Edmonton, Alberta, to Superior, Wisconsin.

Monaco said Enbridge was highly confident the line would be in service by the targeted date of 2019, but that there was a possibility it would begin operations later.

Enbridge reported a third-quarter adjusted profit of C$437 million, or 47 Canadian cents, per common share, slightly below an analysts' estimate of 49 Canadian cents per share, according to Thomson Reuters I/B/E/S.

Volumes on the company's mainline system, which ships the bulk of Canadian crude exports to the United States, averaged 2.35 million barrels per day as Alberta oil production recovered from wildfire-related outages earlier this year.

Enbridge reported a net loss attributable to shareholders narrowed to C$103 million, or 11 Canadian cents per share, from C$609 million, or 72 Canadian cents per share, a year earlier. company's shares were last down 1.8 percent on the Toronto Stock Exchange at C$54.98. ($1 = 1.3377 Canadian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.