CALGARY, ALBERTA--(CCNMatthews - May 5, 2005) - Enbridge Inc. (TSX:ENB) (NYSE:ENB)
Highlights
- Reported earnings increase to $220.6 million
- Adjusted operating earnings increase 8% to $205.0 million
- Continued encouraging progress on various oil and gas infrastructure growth initiatives
- Spearhead reversal construction commences on receipt of regulatory approval
"Enbridge's first quarter performance is strong and consistent with our expectations and previously noted full year adjusted operating earnings target of $3.20 to $3.30 per common share," said Patrick D. Daniel, President & Chief Executive Officer of Enbridge Inc. "Enbridge generated another solid quarter of earnings growth, with contributions from all business segments. Energy supply and demand fundamentals are very strong and we are advancing multiple projects for the mutual benefit of our customers and shareholders."
"I am particularly pleased with the integration of the Enbridge Offshore Pipelines assets and personnel acquired from Shell at year-end" added Mr. Daniel. "In the first quarter we consolidated our interest in the Garden Banks pipeline system and we plan to tie in other production to come on stream in later 2005 and 2006. The deep water Gulf of Mexico is expected to remain a prolific production area for many years to come, and we also expect to participate in future LNG regasification and delivery opportunities." Mr. Daniel concluded. "Our existing and proposed energy delivery infrastructure assets now target many of North America's developing energy basins, including Alberta oil sands, Texas tight gas and Alaskan gas, and are well positioned to contribute to Enbridge's continued growth."
On May 5, 2005, the Enbridge Board of Directors declared quarterly dividends of $0.50 per common share on a pre-split basis and $0.34375 per Series A Preferred Share. Both dividends are payable on June 1, 2005 to shareholders of record on May 16, 2005. A proposed stock split is subject to shareholder approval at today's Special and Annual Meeting and the record date for the stock split is expected to be May 20, 2005. Earnings applicable to common shareholders are $220.6 million for the three months ended March 31, 2005, or $1.31 per share, compared with $112.4 million, or $0.67 per share, in 2004. The $108.2 million increase in earnings is largely due to the change in the year-end of the gas distribution operations and the elimination of seasonal distribution rates. These factors create a lack of comparability between periods, including a significant increase in revenues, however comparable information is provided below. Other significant changes include the earnings from the recently acquired Enbridge Offshore Pipelines, lower interest expense and the absence of earnings from AltaGas which was sold in 2004.
---------------------------------------------------------------------Consolidated Earnings--------------------------------------------------------------------- Three months ended(millions of Canadian dollars) March 31,--------------------------------------------------------------------- 2005 2004---------------------------------------------------------------------Liquids Pipelines 53.0 52.6Gas Pipelines 18.3 13.0Sponsored Investments 18.4 15.4Gas Distribution and Services (1) 127.8 39.5International 18.2 16.2Corporate (15.1) (24.3)--------------------------------------------------------------------- 220.6 112.4------------------------------------------------------------------------------------------------------------------------------------------(1) Consolidated earnings for 2005 reflect earnings from Enbridge Gas Distribution (EGD), Noverco and Other Gas Distribution Operations on a calendar year basis for the three months ended March 31, 2005; whereas, first quarter earnings for 2004 reflected earnings from EGD, Noverco and Other Gas Distribution Operations on a quarter lag basis for October 1, 2003 to December 31, 2003. Effective December 31, 2004, EGD changed its fiscal year-end for financial reporting purposes from September 30 to December 31. Accordingly, the 2004 earnings from EGD, Noverco and Other Gas Distribution Operations are not comparable to earnings for 2005. Reconciliations are provided below.Significant non-operating factors and variances affectingconsolidated earnings are as follows:--------------------------------------------------------------------- Three months ended(millions of Canadian dollars) March 31,--------------------------------------------------------------------- 2005 2004---------------------------------------------------------------------Sponsored Investments Dilution gains on EEP unit issuance 4.6 0.9--------------------------------------------------------------------- 4.6 0.9Gas Distribution and Services Quarter lag earnings for the three months ended December 31, 2003 (2) - 27.1 Calendar basis earnings for the three months ended March 31, 2004 (2) - (152.3) Colder than normal weather (2) 3.7 16.5 Seasonal distribution rates - 29.1 Dilution gain in Noverco (Gaz Metro unit issuance) 7.3 - Revalue future income taxes due to tax rate changes - 0.6--------------------------------------------------------------------- 11.0 (79.0)Total significant non-operating factors and variances increasing/ (decreasing) earnings 15.6 (78.1)------------------------------------------------------------------------------------------------------------------------------------------(2) Effective December 31, 2004, EGD's fiscal year end changed from September 30 to December 31 and EGD is no longer consolidated on a quarter lag basis. In order to compare 2004 earnings to 2005, the 2004 first quarter earnings for EGD, Noverco and Other Gas Distribution Operations, which were for the period October 1, 2003 to December 31, 2003, have been eliminated and second quarter earnings, for the period January 1, 2004 to March 31, 2004, have been added. Other non-operating factors and variances that affected these businesses in 2004 are for the period January 1, 2004 to March 31, 2004 as was reported in the Company's second quarter results for 2004.
Significant operating factors affecting earnings in 2005 include the following:
- Enbridge Offshore Pipelines, acquired December 31, 2004, contributes positive earnings.
- The Aux Sable liquids extraction plant reflects an improvement over the prior year due to improved fractionation margins.
- There are no earnings from AltaGas in 2005 as the investment was sold in 2004.
- Corporate costs are lower primarily as a result of lower interest expense.
The Company has foreign currency denominated earnings, primarily from U.S. based operations and investments, as well as its Euro investment in CLH. The Company uses long-term net investment hedges to economically hedge a significant portion of the cash flows related to certain of these operations. However, this does not eliminate the earnings volatility due to exchange rate differences and the translation of these foreign currency denominated earnings for accounting purposes. During the first quarter of 2005, the Company received foreign currency denominated cash distributions and settled associated hedge transactions resulting in $4.4 million (2004 - $1.9 million) of incremental cash flows, which is not included in reported earnings.
Non-GAAP Measures
This news release contains a reference to adjusted operating earnings, which represent earnings applicable to common shareholders adjusted for non-operating factors. This is not a measure that has a standardized meaning prescribed by Canadian generally accepted accounting principles (GAAP) and is not considered a GAAP measure. Therefore, this measure may not be comparable to a similar measure presented by other issuers.
Management believes that the presentation of adjusted operating earnings provides more useful information to investors and shareholders as it provides increased predictive value and allows them to more accurately identify the trend in earnings.
--------------------------------------------------------------------- Three months ended(millions of Canadian dollars) March 31,--------------------------------------------------------------------- 2005 2004---------------------------------------------------------------------GAAP earnings as reported 220.6 112.4Non-operating factors and variances as per above table (15.6) 78.1---------------------------------------------------------------------Adjusted Operating Earnings 205.0 190.5---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Liquids Pipelines--------------------------------------------------------------------- Three months ended(millions of Canadian dollars) March 31,--------------------------------------------------------------------- 2005 2004---------------------------------------------------------------------Enbridge System 38.9 41.2Athabasca System 12.3 10.7NW System 1.8 1.9Feeder Pipelines and Other - (1.2)--------------------------------------------------------------------- 53.0 52.6------------------------------------------------------------------------------------------------------------------------------------------- Enbridge System earnings include management's estimate of the incentive tolling agreement renegotiation outcome as well as higherrevaluation oil losses associated with significant changes in crude oil prices during the quarter. These decreases are partially offset by an increase in Enbridge's share of the Terrace surcharge effectiveApril 1, 2004.- The earnings variance in Feeder Pipelines and Other is the resultof Federal Energy Regulatory Commission ordered reparations on the Frontier Pipeline, partially recorded in the first quarter of 2004.---------------------------------------------------------------------Gas Pipelines --------------------------------------------------------------------- Three months ended(millions of Canadian dollars) March 31,--------------------------------------------------------------------- 2005 2004---------------------------------------------------------------------Alliance Pipeline (US) 7.9 9.0Enbridge Offshore Pipelines 6.0 -Vector Pipeline 4.4 4.0--------------------------------------------------------------------- 18.3 13.0------------------------------------------------------------------------------------------------------------------------------------------- Alliance Pipeline (US) earnings primarily reflect the impact of the stronger Canadian dollar in 2005.- Enbridge Offshore Pipelines was acquired on December 31, 2004 for$754.0 million.- Vector earnings were positively impacted by continued growth in short haul firm transportation volumes, partially offset by the impact of the stronger Canadian dollar in 2005.---------------------------------------------------------------------Sponsored Investments--------------------------------------------------------------------- Three months ended(millions of Canadian dollars) March 31,--------------------------------------------------------------------- 2005 2004---------------------------------------------------------------------Enbridge Energy Partners (EEP) 5.5 7.0Enbridge Income Fund (EIF) 8.3 7.5Dilution Gains 4.6 0.9--------------------------------------------------------------------- 18.4 15.4------------------------------------------------------------------------------------------------------------------------------------------- EEP's 2005 results reflect various factors including slightly loweroperating earnings, a stronger Canadian dollar and a lower ownershipinterest.- EEP issued more partnership units in 2005 than 2004 and becauseEnbridge did not fully participate in these offerings, dilution gainsresulted.---------------------------------------------------------------------Gas Distribution and Services --------------------------------------------------------------------- Three months ended(millions of Canadian dollars) March 31,--------------------------------------------------------------------- 2005 2004---------------------------------------------------------------------Enbridge Gas Distribution (1) 91.1 11.5Noverco (1) 21.9 13.6CustomerWorks/ECS 6.1 4.9Other Gas Distribution Operations(1) 4.8 2.0Enbridge Gas New Brunswick 1.0 1.1Gas Services 0.9 (0.4)Aux Sable 3.2 1.3AltaGas Income Trust (investment sold in 2004) - 4.7Other (1.2) 0.8--------------------------------------------------------------------- 127.8 39.5------------------------------------------------------------------------------------------------------------------------------------------(1) Earnings for 2005 are on a calendar year basis for the three months ended March 31, 2005; whereas, first quarter earnings for 2004 reflected earnings on a quarter lag basis for October 1, 2003 to December 31, 2003. Effective December 31, 2004, EGD changed its fiscal year-end for financial reporting purposes from September 30 to December 31. Accordingly, the 2004 earnings from EGD, Noverco and Other Gas Distribution Operations are not comparable to earnings for 2005. Reconciliations are provided below.
- The higher earnings from Aux Sable are the result of improved
fractionation margins.
- The variance in Other is primarily the result of business development
costs related to the proposed Rabaska LNG facility.
--------------------------------------------------------------------- Three months ended(millions of Canadian dollars) March 31,--------------------------------------------------------------------- 2005 2004---------------------------------------------------------------------Enbridge Gas Distribution - as reported 91.1 11.5Significant non-operating factors and variances: quarter lag earnings for the three months ended December 31, 2003(1) - (11.5) calendar basis earnings for the three months ended March 31, 2004(2) - 132.4 colder than normal weather (3.7) (16.5) seasonal distribution rates - (29.1)--------------------------------------------------------------------- 87.4 86.8------------------------------------------------------------------------------------------------------------------------------------------(1) These earnings are included in Enbridge's consolidated earnings for the first quarter of 2004.(2) These earnings are included in Enbridge's consolidated earnings for the second quarter of 2004.
- The 2005 regulatory decision eliminated seasonal distribution rates, which were higher in the winter months and lower in the summer months, and replaced them with a uniform annual rate. Commencing in 2005, this shifts a portion of earnings from the winter months to the summer months. The seasonal distribution rate variance, noted in the above table, is the effect of applying the uniform rate to 2004 results and volumes.
--------------------------------------------------------------------- Three months ended(millions of Canadian dollars) March 31,--------------------------------------------------------------------- 2005 2004---------------------------------------------------------------------Noverco - as reported 21.9 13.6Significant non-operating factors and variances: quarter lag earnings for the three months ended December 31, 2003(1) - (13.6) calendar basis earnings for the three months ended March 31, 2004(2) - 15.0 dilution gain in Noverco (Gaz Metro unit issuance) (7.3) ---------------------------------------------------------------------- 14.6 15.0------------------------------------------------------------------------------------------------------------------------------------------(1) These earnings are included in Enbridge's consolidated earnings for the first quarter of 2004.(2) These earnings are included in Enbridge's consolidated earnings for the second quarter of 2004.--------------------------------------------------------------------- Three months ended(millions of Canadian dollars) March 31,--------------------------------------------------------------------- 2005 2004---------------------------------------------------------------------Other Gas Distribution Operations - as reported 4.8 2.0Significant non-operating factors and variances: quarter lag earnings for the three months ended December 31, 2003(1) - (2.0) calendar basis earnings for the three months ended March 31, 2004(2) - 4.9--------------------------------------------------------------------- 4.8 4.9------------------------------------------------------------------------------------------------------------------------------------------(1) These earnings are included in Enbridge's consolidated earnings for the first quarter of 2004.(2) These earnings are included in Enbridge's consolidated earnings for the second quarter of 2004.---------------------------------------------------------------------International--------------------------------------------------------------------- Three months ended(millions of Canadian dollars) March 31,--------------------------------------------------------------------- 2005 2004---------------------------------------------------------------------CLH 11.6 9.8OCENSA/CITCol 8.2 7.8Other (1.6) (1.4)--------------------------------------------------------------------- 18.2 16.2------------------------------------------------------------------------------------------------------------------------------------------- Results from CLH reflect increased volumes due to greater demand for refined products throughout Spain.---------------------------------------------------------------------Corporate--------------------------------------------------------------------- Three months ended(millions of Canadian dollars) March 31,--------------------------------------------------------------------- 2005 2004---------------------------------------------------------------------Corporate (15.1) (24.3)------------------------------------------------------------------------------------------------------------------------------------------
- The $9.2 million decrease in corporate costs is primarily the result of lower interest expense partially related to the December 2004 redemption of preferred securities. Conference Call Enbridge will hold a conference call on May 5, 2005 at 9:30 a.m. Eastern time (7:30 a.m. Mountain time) to discuss the first quarter 2005 results. The call can be accessed at 1-800-901-5248, pass code of 44954330, and will be audio webcast live at www.enbridge.com/investor.
An audio replay will be available shortly thereafter at 1-888-286-8010 using the access code 50611581; in addition, the webcast replay and transcript will be available on the website, later in the day.
The unaudited interim consolidated financial statements and MD&A, which contain additional notes and disclosures, are available on the Enbridge website.
Enbridge Inc. is a leader in energy transportation and distribution in North America and internationally. As a transporter of energy, Enbridge operates, in Canada and the United States, the world's longest crude oil and liquids pipeline system. The Company also has international operations and a growing involvement in the natural gas transmission and midstream businesses. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company, which provides distribution services in the provinces of Ontario and Quebec, and in New York State; and is developing a gas distribution system for the Province of New Brunswick. The Company employs approximately 4,000 people, primarily in Canada, the United States and South America.
Enbridge's common shares trade on the Toronto Stock Exchange in Canada and on the New York Stock Exchange in the United States under the symbol ENB. Information about Enbridge is available on the Company's website at www.enbridge.com.
Certain information provided in this news release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Although Enbridge believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties pertaining to operating performance, regulatory parameters, weather, economic conditions and commodity prices. You can find a discussion of those risks and uncertainties in our Canadian securities filings and American SEC filings. While Enbridge makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Enbridge assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
ENBRIDGE INC.HIGHLIGHTS(1)--------------------------------------------------------------------- Three months ended(unaudited; millions of Canadian dollars, March 31,--------------------------------------------------------------------- except per share amounts) 2005 2004---------------------------------------------------------------------FINANCIAL Earnings Applicable to Common Shareholders Liquids Pipelines 53.0 52.6 Gas Pipelines 18.3 13.0 Sponsored Investments 18.4 15.4 Gas Distribution and Services 127.8 39.5 International 18.2 16.2 Corporate (15.1) (24.3)--------------------------------------------------------------------- 220.6 112.4------------------------------------------------------------------------------------------------------------------------------------------ Cash Provided By Operating Activities Earnings plus charges/(credits) not affecting cash 368.9 239.7 Changes in operating assets and liabilities 300.7 (47.6)--------------------------------------------------------------------- 669.6 192.1------------------------------------------------------------------------------------------------------------------------------------------ Common Share Dividends 86.9 78.7------------------------------------------------------------------------------------------------------------------------------------------ Earnings per Common Share 1.31 0.67------------------------------------------------------------------------------------------------------------------------------------------ Dividends per Common Share 0.5000 0.4575------------------------------------------------------------------------------------------------------------------------------------------ Weighted Average Common Shares Outstanding (millions) 168.3 166.8------------------------------------------------------------------------------------------------------------------------------------------OPERATING Liquids Pipelines(2) Deliveries (thousands of barrels per day) 2,032 2,102 Barrel miles (billions) 172 185 Average haul (miles) 938 967 Gas Distribution and Services(3) Volumes (billion cubic feet) 196 130 Number of active customers (thousands) 1,775 1,706 Degree day deficiency(4) Actual 2,090 1,023 Forecast based on normal weather 1,962 937------------------------------------------------------------------------------------------------------------------------------------------(1) Highlights of Gas Distribution and Services for 2004 reflect the results of Enbridge Gas Distribution (EGD) and other gas distribution operations on a one-quarter lag basis for the three months ended December 31, 2003. For 2005, as a result of EGD's change in fiscal year end from September 30 to December 31, Highlights reflect the results of EGD and other gas distribution operations for the three months ended March 31, 2005.(2) Liquids Pipelines operating highlights include the statistics of the 11.2% owned Lakehead System and other wholly-owned liquid pipeline operations.(3) Gas Distribution and Services volumes and the number of active customers are derived from the aggregate system supply and direct purchase gas supply arrangements.(4) Degree-day deficiency is a measure of coldness. It is calculated by accumulating for each day in the period the total number of degrees each day by which the daily mean temperature falls below 18 degrees Celsius. The figures given are those accumulated in the Toronto area.ENBRIDGE INC.CONSOLIDATED STATEMENTS OF EARNINGS--------------------------------------------------------------------- Three months ended(unaudited; millions of Canadian dollars, March 31,--------------------------------------------------------------------- except per share amounts) 2005 2004------------------------------------------------------------------------------------------------------------------------------------------Revenues Gas sales 1,553.9 969.8 Transportation 545.5 409.0 Energy services 82.3 74.4--------------------------------------------------------------------- 2,181.7 1,453.2---------------------------------------------------------------------Expenses Gas costs 1,395.7 854.9 Operating and administrative 259.4 202.3 Depreciation 143.3 110.5--------------------------------------------------------------------- 1,798.4 1,167.7---------------------------------------------------------------------Operating Income 383.3 285.5Investment and Other Income 82.2 76.2Interest Expense (135.3) (124.1)--------------------------------------------------------------------- 330.2 237.6Income Taxes (107.9) (123.5)---------------------------------------------------------------------Earnings 222.3 114.1Preferred Share Dividends (1.7) (1.7)---------------------------------------------------------------------Earnings Applicable to Common Shareholders 220.6 112.4------------------------------------------------------------------------------------------------------------------------------------------Earnings Per Common Share 1.31 0.67------------------------------------------------------------------------------------------------------------------------------------------Diluted Earnings Per Common Share 1.30 0.67------------------------------------------------------------------------------------------------------------------------------------------CONSOLIDATED STATEMENTS OF RETAINED EARNINGS--------------------------------------------------------------------- Three months ended(unaudited; millions of Canadian dollars) March 31,------------------------------------------------------------------------------------------------------------------------------------------ 2005 2004---------------------------------------------------------------------Retained Earnings at Beginning of Period 1,840.9 1,511.4Earnings Applicable to Common Shareholders 220.6 112.4Common Share Dividends (86.9) (78.7)---------------------------------------------------------------------Retained Earnings at End of Period 1,974.6 1,545.1------------------------------------------------------------------------------------------------------------------------------------------ENBRIDGE INC.CONSOLIDATED STATEMENTS OF CASH FLOWS--------------------------------------------------------------------- Three months ended(unaudited; millions of Canadian dollars) March 31,--------------------------------------------------------------------- 2005 2004---------------------------------------------------------------------Cash Provided By Operating Activities Earnings 222.3 114.1 Charges/(credits) not affecting cash Depreciation 143.3 110.5 Equity earnings in excess of cash distributions (28.2) (31.7) Gain on reduction of ownership interest (15.6) (2.5) Future income taxes 37.1 49.0 Other 10.0 0.3 Changes in operating assets and liabilities 300.7 (47.6)--------------------------------------------------------------------- 669.6 192.1------------------------------------------------------------------------------------------------------------------------------------------Investing Activities Acquisitions (42.7) (3.7) Long-term investments (61.0) (16.2) Additions to property, plant and equipment (83.1) (71.3) Changes in construction payable 14.0 (5.2)--------------------------------------------------------------------- (172.8) (96.4)---------------------------------------------------------------------Financing Activities Net change in short-term borrowings and short-term debt (701.8) (165.5) Long-term debt issues 620.1 300.0 Long-term debt repayments (296.9) (150.0) Non-recourse long-term debt repayments (4.3) (14.2) Non-recourse long-term debt issues 6.8 - Non-controlling interests (4.5) (0.6) Common shares issued 27.4 19.5 Preferred share dividends (1.7) (1.7) Common share dividends (86.9) (78.7)--------------------------------------------------------------------- (441.8) (91.2)---------------------------------------------------------------------Increase in Cash 55.0 4.5Cash at Beginning of Period 105.5 104.1---------------------------------------------------------------------Cash at End of Period 160.5 108.6------------------------------------------------------------------------------------------------------------------------------------------ENBRIDGE INC.CONSOLIDATED STATEMENTS OF FINANCIAL POSITION--------------------------------------------------------------------- March 31, December 31,(unaudited; millions of Canadian dollars) 2005 2004---------------------------------------------------------------------AssetsCurrent Assets Cash 160.5 105.5 Accounts receivable and other 1,293.4 1,451.9 Inventory 503.2 791.6--------------------------------------------------------------------- 1,957.1 2,349.0Property, Plant and Equipment, net 10,317.8 9,066.5Long-Term Investments 1,924.6 2,278.3Receivable from Affiliate 175.3 171.7Deferred Amounts and Other Assets 783.0 729.2Goodwill 359.7 31.5Intangible Assets 250.2 133.9Future Income Taxes 151.4 145.0--------------------------------------------------------------------- 15,919.1 14,905.1------------------------------------------------------------------------------------------------------------------------------------------Liabilities and Shareholders' EquityCurrent Liabilities Short-term borrowings 272.2 650.6 Accounts payable and other 1,099.3 1,275.9 Interest payable 84.3 83.8 Current maturities and short-term debt 240.0 703.9 Current portion of non-recourse long-term debt 71.1 30.2--------------------------------------------------------------------- 1,766.9 2,744.4Long-Term Debt 6,514.8 6,053.3Non-Recourse Long-Term Debt 1,715.0 665.2Other Long-Term Liabilities 146.1 151.8Future Income Taxes 937.1 797.3Non-Controlling Interests 693.8 514.9--------------------------------------------------------------------- 11,773.7 10,926.9Shareholders' Equity Share capital Preferred shares 125.0 125.0 Common shares 2,309.8 2,282.4 Contributed surplus 6.0 5.4 Retained earnings 1,974.6 1,840.9 Foreign currency translation adjustment (134.3) (139.8) Reciprocal shareholding (135.7) (135.7)--------------------------------------------------------------------- 4,145.4 3,978.2--------------------------------------------------------------------- 15,919.1 14,905.1------------------------------------------------------------------------------------------------------------------------------------------SEGMENTED INFORMATIONThree months ended March 31, 2005---------------------------------------------------------------------(millions Gas of Canadian Liquids Gas Sponsored Distribution dollars) Pipelines Pipelines Investments and Services(1)---------------------------------------------------------------------Revenues 211.8 96.5 60.3 1,809.6Gas costs - - - (1,395.7)Operating and administrative (74.2) (21.2) (13.2) (140.2)Depreciation (37.2) (24.2) (17.5) (63.1)---------------------------------------------------------------------Operating income 100.4 51.1 29.6 210.6Investment and other income (0.8) - 20.7 26.6Interest and preferred equity charges (24.3) (21.1) (15.5) (44.7)Income taxes (22.3) (11.7) (16.4) (64.7)---------------------------------------------------------------------Earnings applicable to common shareholders 53.0 18.3 18.4 127.8------------------------------------------------------------------------------------------------------------------------------------------Three months ended March 31, 2005 ---------------------------------------------------------------------(millions of Canadian dollars) International Corporate Consolidated---------------------------------------------------------------------Revenues 3.5 - 2,181.7Gas costs - - (1,395.7)Operating and administrative (4.6) (6.0) (259.4)Depreciation (0.3) (1.0) (143.3)---------------------------------------------------------------------Operating income (1.4) (7.0) 383.3Investment and other income 20.1 15.6 82.2Interest and preferred equity charges - (31.4) (137.0)Income taxes (0.5) 7.7 (107.9)---------------------------------------------------------------------Earnings applicable to common shareholders 18.2 (15.1) 220.6------------------------------------------------------------------------------------------------------------------------------------------Three months ended March 31, 2004 ---------------------------------------------------------------------(millions Gas of Canadian Liquids Gas Sponsored Distribution dollars) Pipelines Pipelines Investments and Services(1)---------------------------------------------------------------------Revenues 204.9 67.5 - 1,173.4Gas costs - - - (854.9)Operating and administrative (68.1) (12.8) - (107.9)Depreciation (35.9) (16.8) - (56.7)---------------------------------------------------------------------Operating income 100.9 37.9 - 153.9Investment and other income 1.0 0.2 25.6 21.8Interest and preferred equity charges (25.0) (16.8) - (43.0)Income taxes (24.3) (8.3) (10.2) (93.2)---------------------------------------------------------------------Earnings applicable to common shareholders 52.6 13.0 15.4 39.5------------------------------------------------------------------------------------------------------------------------------------------Three months ended March 31, 2004 ---------------------------------------------------------------------(millions of Canadian dollars) International Corporate Consolidated---------------------------------------------------------------------Revenues 7.4 - 1,453.2Gas costs - - (854.9)Operating and administrative (9.0) (4.5) (202.3)Depreciation (0.4) (0.7) (110.5)---------------------------------------------------------------------Operating income (2.0) (5.2) 285.5Investment and other income 19.3 8.3 76.2Interest and preferred equity charges - (41.0) (125.8)Income taxes (1.1) 13.6 (123.5)---------------------------------------------------------------------Earnings applicable to common shareholders 16.2 (24.3) 112.4------------------------------------------------------------------------------------------------------------------------------------------
(1) Gas Distribution and Services results for 2004 were consolidated on a one-quarter-lag basis and therefore reflect the period from October 1, 2003 to December 31, 2003. Starting at the end of 2004, EGD changed its fiscal year end from September 30 to December 31. Therefore, the quarter lag basis of consolidation was eliminated. Gas Distribution and Services results for 2005 reflect the period from January 1, 2005 to March 31, 2005.
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