Enbridge Profits Drop, Affected by Canadian Wildfires

The May wildfire in Canada significantly affected Enbridge’s profit loss in its second quarter as it curtailed crude oil production and left pipelines partially filled.

The energy company reported a net income of C$301 (US$299) million compared to C$577 (US$441) million last year, dropping approximately 48 percent.

Enbridge CEO Al Monaco stated in a Friday conference call that the fire “was an unprecedented event.” He added that some of their “assets sustained minor damage and systems have now returned to full service.”

During production in May and June, deliveries lost 10 percent in throughput due to the wildfire. The fire also resulted in the shutdown of as much as 1.4 million barrels a day of total oil-sands production, which is about 40 percent of Canada’s supply. Restarts since the fire have restored most of the loss.

Enbridge executives said Friday that the company is adding between 50,000 and 60,000 barrels per day of extra capacity on its mainline from September.

Despite the waning confidence of future oil projects in Western Canada due to the prolonged price drop, Enbridge continues to grow its crude pipelines. It has C$18 billion of projects secured through 2019 and is looking for areas in power generation and energy services in which to grow.

“The opportunity set is large,” said Monaco during the conference call.

Source:
Bloomberg