CALGARY, ALBERTA--Enbridge Inc. today announced earnings
applicable to common shareholders of $667.2 million for the year
ended December 31, 2003, or $4.03 per share, compared with $576.5
million, or $3.60 per share, in 2002. Contributing to the
increase are higher earnings due to crude oil pipeline expansion,
a higher ownership interest in the Alliance Pipeline, higher
earnings at Enbridge Gas Distribution due to colder than normal
weather, as well as higher earnings from additional equity
earnings from Enbridge Energy Partners, L.P. (EEP) and CLH of
Spain.
Fourth quarter earnings for 2003 are $27.3 million, or $0.16 per
share, compared with $34.0 million or $0.18 per share for the
fourth quarter in 2002. The fourth quarter of 2003 reflects
earnings improvements from the liquids pipelines comprising the
Enbridge System, which is more than offset by regulatory
decisions at Enbridge Gas Distribution and higher corporate
costs. The prior year's quarter includes a loss of $5.9 million
due to closing adjustments on the sale of the United States
assets of Enbridge Midcoast Energy.
Consistent with this profitability and the Company's positive
outlook, the Board of Directors announced an increase in the
quarterly dividend from $0.415 per common share to $0.4575 per
common share. The Board of Directors also declared a quarterly
dividend of $0.34375 per Series A Preferred Share. Both dividends
are payable on March 1, 2004 to shareholders of record on
February 13, 2004.
"2003 was another excellent year for Enbridge as we grew earnings
again, to $2.84 per common share excluding unusual items, in line
with our previous guidance," stated Patrick D. Daniel, President
& Chief Executive Officer. "While growing earnings in each of our
five operating segments, we made good progress on all of our
strategic priorities, positioning Enbridge extremely well within
the industry. We completed several strategic asset acquisitions
and we are making significant progress in expanding the market
for Western Canadian oil producers. We also established a premier
Canadian Income Trust, Enbridge Income Fund, seeded with assets
from Enbridge."
Mr. Daniel added, "The balance sheet is strong and we continue to
pursue multiple growth opportunities in 2004. Based on our
outlook for 2004, it is our expectation that earnings, excluding
unusual items, will be in the range of $3.00 to $3.10 per common
share."
Consolidated Earnings (1)(millions of Three months ended Twelve months ended Canadian dollars) December 31, December 31,-------------------------------------------------------------------- 2003 2002 2003 2002 ---------------------------------------Liquids Pipelines 53.0 37.0 213.5 189.6Gas Pipelines 17.5 13.8 70.1 47.8Sponsored Investments 28.8 (3.5) 234.3 (51.1)Gas Distribution and Services (64.2) (18.5) 153.6 124.3International 20.2 17.6 72.3 68.0Corporate (28.0) (12.4) (76.6) (44.4) --------------------------------------- 27.3 34.0 667.2 334.2Discontinued Operations - - - 242.3 --------------------------------------- 27.3 34.0 667.2 576.5 --------------------------------------- ---------------------------------------(1) In 2003, the Company changed its financial reporting segments to better reflect the business operations and management structure of the Company. All financial information has been restated to reflect the new segments. Prior year resegmentation is available on the Enbridge website at www.enbridge.com/investor.
Significant non-recurring factors and variances affecting
consolidated earnings are as follows:
- Sponsored Investments includes a $169.1 million after-tax gain
on the sale of assets to Enbridge Income Fund (EIF) recorded in
the second quarter of 2003.
- Sponsored Investments included an $82.2 million after-tax
writedown recorded in 2002, including a $5.9 million after-tax
writedown recorded in the fourth quarter, relating to the
Enbridge Midcoast Energy (Midcoast) assets.
- Sponsored Investments includes a $9.2 million dilution gain in
the second quarter of 2003, and a $11.1 million dilution gain in
the fourth quarter of 2003, both relating to unit issuances by
EEP. The prior year included only one dilution gain from EEP of
$6.1 million in the first quarter.
- Gas Distribution and Services includes the positive effect of
colder than normal weather of $46.1 million in 2003. In 2002,
warm weather negatively affected earnings by $29.3 million. The
positive weather effect in 2003 is partially offset by several
regulatory disallowances in 2003, including $7.1 million in the
first quarter, a $26.0 million regulatory receivable writedown in
the fourth quarter and $4.6 million related to an outsourcing
disallowance also in the fourth quarter.
- The results of Noverco, included in Gas Distribution and
Services, reflect a $6.0 million dilution gain relating to a unit
issuance by Gaz Metro Limited Partnership.
- Corporate included a $17.8 million after-tax gain on a sale of
marketable securities recorded in the first quarter of 2002.
- The second quarter of each year includes the effect of the
Alberta 0.5% tax rate reductions. The 2003 results also include
the effect of a higher federal future tax rate since federal
surtax will apply when large corporations tax is eliminated.
These tax rate changes result in a $7.1 million net charge to
earnings in the second quarter of 2003 compared with a net
recovery of $1.4 million in the comparable period of the prior
year.
- Discontinued operations included a $240.0 million after-tax
gain on the sale of the retail Energy Services business in 2002.
Operating factors that enhanced earnings in 2003 include the
additional ownership interest in Alliance and Vector,
commencement of Terrace Phase III on April 1, 2003, as well as,
higher earnings from EEP and from CLH of Spain. These positive
factors are partially offset by the absence of earnings from
Midcoast, which was sold to EEP in October 2002, an increased
loss from Aux Sable and additional corporate expenses.
Liquids Pipelines--------------------------------------------------------------------(millions of Three months ended Twelve months ended Canadian dollars) December 31, December 31,-------------------------------------------------------------------- 2003 2002 2003 2002 ----------------------------------------Enbridge System 48.5 21.5 162.0 123.7Athabasca System 9.6 10.6 44.8 41.2NW System 2.1 2.4 8.3 9.5Saskatchewan System - 1.5 3.1 6.4Feeder Pipelines and Other (7.2) 1.0 (4.7) 8.8 ---------------------------------------- 53.0 37.0 213.5 189.6 ---------------------------------------- ----------------------------------------
- Enbridge System earnings include incremental earnings from
Terrace as Phase III was placed into service ahead of schedule on
April 1, 2003, lower depreciation rates as approved by the
National Energy Board, and power savings realized in the fourth
quarter of 2003. Contributing to the year-over-year variance is
the negative effect of an adjustment to the power allowance
credit due to shippers in the fourth quarter of 2002 as a result
of Terrace operating at less than capacity.
- Higher earnings from the Athabasca System are primarily the
result of the completion of additional facilities and tankage
including the Hardisty, Alberta storage project.
- The Saskatchewan System is included in the results of EIF, in
the Sponsored Investments segment, effective June 30, 2003.
- Feeder Pipelines and Other reflects a provision for costs
associated with toll challenges on the Frontier pipeline. In
addition, the fourth quarter of 2003 includes higher liquids
pipelines business development costs. Other factors contributing
to the earnings variance include lower tolls on the Frontier
pipeline and the prior year included a revenue adjustment on the
Toledo pipeline.
Gas Pipelines-------------------------------------------------------------------(millions of Canadian Three months ended Twelve months ended dollars) December 31, December 31,------------------------------------------------------------------- 2003 2002 2003 2002 ----------------------------------------Alliance Pipeline (US) 13.3 5.8 40.3 19.6Alliance Pipeline (Canada) - 5.9 19.6 21.1Vector Pipeline 4.2 2.1 10.2 7.1 ---------------------------------------- 17.5 13.8 70.1 47.8 ---------------------------------------- ----------------------------------------
- Alliance Pipeline (US) earnings reflect the additional
ownership interests of 15.7% acquired in the fourth quarter of
2002, 1.1% in March 2003, 10.7% in April 2003, and 1.1% in
October 2003 .
- Alliance Pipeline (Canada) is included in the results of EIF,
in the Sponsored Investments segment, effective June 30, 2003.
Prior to its sale to EIF, the Company's ownership interest in
Alliance Pipeline (Canada) was 50%. The Company acquired an
additional ownership interest of 16.8% in the fourth quarter of
2002 and 11.8% in April 2003.
- Vector earnings reflect increased transportation volumes and
higher transportation margins due to both colder than normal
weather in eastern Canada and higher storage injections. This is
further enhanced by an additional ownership interest of 15.0%
acquired in the fourth quarter of 2003.
Sponsored Investments-------------------------------------------------------------------(millions of Canadian Three months ended Twelve months ended dollars) December 31, December 31,------------------------------------------------------------------- 2003 2002 2003 2002 ----------------------------------------Enbridge Energy Partners 7.6 6.2 27.3 19.5Enbridge Income Fund 10.1 - 17.6 -Enbridge Midcoast Energy - (3.8) - 5.5Gain on sale of assets to EIF - - 169.1 -Writedown of Midcoast assets - (5.9) - (82.2)Dilution Gains 11.1 - 20.3 6.1 --------------------------------------- 28.8 (3.5) 234.3 (51.1) --------------------------------------- ---------------------------------------
- In October 2002, the Company completed the sale of the Enbridge
Midcoast Energy assets to EEP. Higher earnings from EEP in 2003
reflect incremental earnings from this and other acquisitions,
and higher volumes on gas transmission assets.
- EIF commenced operations June 30, 2003.
- In each year, EEP issued additional common units. Enbridge did
not participate in these offerings, resulting in dilution gains.
Gas Distribution and Services-------------------------------------------------------------------(millions of Canadian Three months ended Twelve months ended dollars) December 31, December 31, --------------------------------------- 2003 2002 2003 2002 --------------------------------------Enbridge Gas Distribution (68.5) (23.5) 103.0 85.3CustomerWorks/ECS 3.6 2.7 16.9 10.7Noverco 1.6 (4.0) 24.2 20.6Other Gas Distibution (1.0) (0.7) 6.6 6.2Enbridge Gas New Brunswick 1.0 1.2 4.4 3.6Gas Services (4.7) 2.0 (5.9) (7.8)Aux Sable 1.3 0.3 (6.9) (3.1)Other 2.5 3.5 11.3 8.8 -------------------------------------- (64.2) (18.5) 153.6 124.3 -------------------------------------- --------------------------------------
- Higher earnings in 2003 are the result of higher distribution
volumes attributable to the colder than normal weather
experienced in the Enbridge Gas Distribution franchise area,
amounting to $46.1 million. During 2002, weather was warmer than
normal, resulting in a $29.3 million reduction in earnings. In
2003, degree days, which are used as a measure of coldness, were
19.8% greater than 2002 and 13.0% greater than the forecast based
on normal weather.
(millions of Canadian dollars Twelve months endedexcept number of degree days) December 31,-------------------------------------------------------------------- 2003 2002 -------------------Actual degree days 4,029 3,362Forecast degree days based on normal weather 3,565 3,700Earnings increase/(decrease) due to weather 46.1 (29.3)
- The positive effect of weather in the current year is offset,
in part, by a $7.1 million regulatory disallowance related to
long-term transportation contracts recognized in the first
quarter of 2003, a $4.6 million regulatory disallowance related
to affiliate outsourcing, and a $26.0 million write-down of a
regulatory receivable, both in the fourth quarter of 2003.
Operating and maintenance expenses were also higher in 2003.
- The main component of CustomerWorks/ECS earnings in 2003 is the
contribution from CustomerWorks. The primary operations of
Enbridge Commercial Services (ECS) were rebundled in Enbridge Gas
Distribution at the end of 2002. In 2002, earnings from
CustomerWorks were affected by activity levels, including
customer service calls, which were lower due to warmer weather.
In 2003, earnings reflect higher weather related customer service
call volumes and growth in the CustomerWorks customer base.
- The 2003 operating results for Noverco include a $6.0 million
dilution gain, resulting from a Gaz Metro Limited Partnership
unit issuance that Noverco did not participate in. This gain was
recorded in the fourth quarter.
- The loss of $5.9 million for Gas Services in 2003 is an
improvement of $1.9 million from the prior year. The improvement
is due primarily to the commencement of fee-based gas service
management contracts with certain U.S.-based companies in late
2002 and increased demand for natural gas and associated
transmission service that reduced merchant capacity losses on
Alliance and Vector. The variance in the fourth quarter is a
result of estimate to actual entries primarily related to prior
quarter activity.
- The loss from Aux Sable reflects the combined effect of higher
natural gas prices and lower ethane prices, most significantly
during the second quarter. The results from Aux Sable in 2003
also reflect the increase in ownership interest from 21.4% to
42.7% offset by lower depreciation as the acquisition of the
additional interest was at a discount to the book value.
International--------------------------------------------------------------------(millions of Three months ended Twelve months endedCanadian dollars) December 31, December 31,-------------------------------------------------------------------- 2003 2002 2003 2002 ---------------------------------------OCENSA/CITCol 8.3 7.2 32.3 35.3CLH 13.8 9.4 46.3 33.3Jose Terminal and Other (1.9) 1.0 (6.3) (0.6) --------------------------------------- 20.2 17.6 72.3 68.0 --------------------------------------- ---------------------------------------
- Earnings from OCENSA/CITCol decreased due to lower incentive
earnings from CITCol.
- Operating results from CLH reflect increased volumes and the
impact of the stronger Euro, partially offset by a reduction in
marine fleet revenues due to the scheduled retirement of certain
ships.
- As a result of a breach of the Jose Terminal operating
agreement by PDVSA, the Venezuelan state oil company, the SWEC
Partnership has filed a notice of contract termination and has
filed for international arbitration, as provided for in the
operating agreement. The Company ceased recognition of earnings
commencing February 1, 2003. Other is primarily administration
and business development costs, as well as, the results of the
Technology business.
Corporate--------------------------------------------------------------------(millions of Three months ended Twelve months endedCanadian dollars) December 31, December 31,-------------------------------------------------------------------- 2003 2002 2003 2002 ---------------------------------------Corporate (28.0) (12.4) (76.6) (44.4) --------------------------------------- ---------------------------------------
- During 2003, the Company incurred slightly lower financing
costs more than offset by various negative factors in the fourth
quarter including increased business development costs, an
expense for stock-based compensation and other corporate costs
primarily relating to prior year business dispositions and final
settlements. The Company adopted the fair value based method of
accounting for stock-based compensation effective January 1,
2003.
- The 2002 results included a $17.8 million after-tax gain on the
sale of marketable securities.
Enbridge will hold a conference call at 2:15 p.m. Mountain time
(4:15 p.m. Eastern time) today to discuss the annual results. The
call can be accessed at 1-800-375-9259 and will be broadcast live
on the Internet at www.enbridge.com/investor. A replay will be
available shortly thereafter at 1-800-408-3053 using the access
code 1520293#.
The annual audited financial statements and MD&A will be
available on Enbridge's website in February.
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 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
When used in this news release, the words "anticipate", "expect",
"project", "believe", "estimate", "forecast" and similar
expressions are intended to identify forward-looking statements,
which include statements relating to pending and proposed
projects. Such statements are subject to risks, uncertainties and
assumptions pertaining to operating performance, regulatory
parameters, weather and economic conditions and, in the case of
pending and proposed projects, risks relating to design and
construction, regulatory processes, obtaining financing and
performance of other parties, including partners, contractors and
suppliers.
NOTE TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS1. SEGMENTED INFORMATION (millions of Canadian dollars)ENBRIDGE INC.HIGHLIGHTS(1)-------------------------------------------------------------------- Three months ended Year ended(unaudited; millions of December 31, December 31,Canadian dollars, --------------------------------------except per share amounts) 2003 2002 2003 2002--------------------------------------------------------------------FINANCIAL Earnings Applicable to Common Shareholders Liquids Pipelines 53.0 37.0 213.5 189.6 Gas Pipelines 17.5 13.8 70.1 47.8 Sponsored Investments 28.8 (3.5) 234.3 (51.1) Gas Distribution and Services (64.2) (18.5) 153.6 124.3 International 20.2 17.6 72.3 68.0 Corporate (28.0) (12.4) (76.6) (44.4)-------------------------------------------------------------------- Continuing operations 27.3 34.0 667.2 334.2 Discontinued operations - - - 242.3-------------------------------------------------------------------- 27.3 34.0 667.2 576.5---------------------------------------------------------------------------------------------------------------------------------------- Cash Provided By/(Used In) Operating Activities Earnings plus charges/(credits) not affecting cash 132.8 37.5 965.0 732.7 Changes in operating assets and liabilities (334.5) (41.6) (569.8) 151.6 Cash provided by operating activities of discontinued operations - - - 26.3-------------------------------------------------------------------- (201.7) (4.1) 395.2 910.6---------------------------------------------------------------------------------------------------------------------------------------- Common Share Dividends 71.3 64.6 283.9 251.1 Per Common Share Amounts Earnings from continuing operations 0.16 0.20 4.03 2.09 Earnings from discontinued operations - (0.02) - 1.51-------------------------------------------------------------------- 0.16 0.18 4.03 3.60---------------------------------------------------------------------------------------------------------------------------------------- Dividends 0.415 0.380 1.660 1.520 ------------------------------------- ------------------------------------- Weighted Average Common Shares Outstanding (millions) 165.5 160.3 ----------------- -----------------OPERATING Liquids Pipelines(2) Deliveries (thousands of barrels per day) 2,356 2,152 2,189 2,088 Barrel miles (billions) 188 183 710 705 Average haul (miles) 870 923 889 925 Gas Distribution(3) Volumes (billion cubic feet) 47 47 458 410 Number of active customers (thousands) 1,679 1,623 1,679 1,623 Degree day deficiency(4) Actual 22 4 4,029 3,362 Forecast based on normal weather 44 69 3,565 3,700----------------------------------------------------------------------------------------------------------------------------------------1. Highlights of Gas Distribution reflect the results of Enbridge Gas Distribution and other gas distribution operations for the three months and the year ended September 30, 2003 and 2002.2. Liquids Pipelines operating highlights include the statistics of the Lakehead System and wholly-owned liquid pipeline operations.3. Gas Distribution 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 Year ended(unaudited; millions of December 31, December 31,Canadian dollars, ---------------------------------------except per share amounts) 2003 2002 2003 2002--------------------------------------------------------------------Revenues Gas sales 433.0 359.9 3,061.7 2,987.7 Transportation 351.4 247.1 1,560.6 1,296.6 Energy services 69.9 50.5 233.0 263.2-------------------------------------------------------------------- 854.3 657.5 4,855.3 4,547.5--------------------------------------------------------------------Expenses Gas costs 419.4 292.1 2,720.1 2,578.0 Operating and administrative 223.7 170.9 800.8 834.1 Depreciation 109.0 100.5 443.0 403.9 Writedown of Enbridge Midcoast Energy assets - 5.3 - 122.7-------------------------------------------------------------------- 752.1 568.8 3,963.9 3,938.7--------------------------------------------------------------------Operating Income 102.2 88.7 891.4 608.8Investment and Other Income 53.7 67.9 208.2 283.1Gain on Sale of Assets to Enbridge Income Fund - - 239.9 -Interest Expense (114.2) (101.2) (451.3) (422.0)-------------------------------------------------------------------- 41.7 55.4 888.2 469.9Income Taxes (6.0) (12.6) (187.4) (102.1)--------------------------------------------------------------------Earnings from Continuing Operations 35.7 42.8 700.8 367.8Earnings from Discontinued Operations - - - 242.3--------------------------------------------------------------------Earnings 35.7 42.8 700.8 610.1Preferred Security Distributions (6.6) (7.1) (26.7) (26.7)Preferred Share Dividends (1.8) (1.7) (6.9) (6.9)--------------------------------------------------------------------Earnings Applicable to Common Shareholders 27.3 34.0 667.2 576.5----------------------------------------------------------------------------------------------------------------------------------------Earnings Applicable to Common Shareholders Continuing Operations 27.3 34.0 667.2 334.2 Discontinued Operations - - - 242.3-------------------------------------------------------------------- 27.3 34.0 667.2 576.5----------------------------------------------------------------------------------------------------------------------------------------Earnings Per Common Share Continuing Operations 0.16 0.20 4.03 2.09 Discontinued Operations - (0.02) - 1.51-------------------------------------------------------------------- 0.16 0.18 4.03 3.60----------------------------------------------------------------------------------------------------------------------------------------Diluted Earnings Per Common Share Continuing Operations 0.16 0.19 4.00 2.06 Discontinued Operations - (0.01) - 1.50-------------------------------------------------------------------- 0.16 0.18 4.00 3.56----------------------------------------------------------------------------------------------------------------------------------------ENBRIDGE INC.CONSOLIDATED STATEMENTS OF RETAINED EARNINGS(unaudited; millions of Canadian dollars)------------------------------------------------------------------Year ended December 31, 2003 2002------------------------------------------------------------------Retained Earnings at Beginning of Year 1,128.1 812.3Earnings Applicable to Common Shareholders 667.2 576.5Effect of Change in Accounting for Stock-Based Compensation - (5.4)Preferred Securities Issue Costs - (4.2)Common Share Dividends (283.9) (251.1)------------------------------------------------------------------Retained Earnings at End of Year 1,511.4 1,128.1------------------------------------------------------------------------------------------------------------------------------------ENBRIDGE INC.CONSOLIDATED STATEMENTS OF CASH FLOWS------------------------------------------------------------------- Three months ended Year ended December 31, December 31,-------------------------------------------------------------------(unaudited; millions of Canadian dollars) 2003 2002 2003 2002-------------------------------------------------------------------Cash Provided By/(Used In) Operating Activities Earnings from continuing operations 35.7 42.9 700.8 367.8 Charges/(credits) not affecting cash Depreciation 109.0 100.5 443.0 403.9 Equity earnings less than/(in excess of) cash distributions 20.5 (22.5) (22.1) (44.6) Gain on sale of assets to Enbridge Income Fund - - (239.9) - Gain on reduction of ownership interest (30.8) - (50.0) (10.0) Gain on sale of securities - - - (21.4) Writedown of EGD regulatory receivable 26.0 - 26.0 - Writedown of Enbridge Midcoast Energy Assets - 5.3 - 122.7 Future income taxes (41.3) (115.4) 86.8 (64.7) Other 13.7 26.7 20.4 (21.0) Changes in operating assets and liabilities (334.5) (41.6) (569.8) 151.6 Cash provided by operating activities of discontinued operations - - - 26.3------------------------------------------------------------------- (201.7) (4.1) 395.2 910.6-------------------------------------------------------------------Investing Activities Acquisitions - - (78.3) (289.3) Long-term investments (2.7) (819.2) (50.5)(1,282.7) Additions to property, plant and equipment (119.4) (187.9) (391.3) (729.9) Proceeds on redemption of Enbridge Commercial Trust Preferred Units - - 24.9 - Sale of assets to Enbridge Income Fund - - 331.2 - Sale of Energy Services business - - - 993.3 Sale of Enbridge Midcoast Energy assets - 529.3 - 529.3 Sale of securities and other assets - 64.8 - 184.3 Repayments by/(loans to) affiliate (3.6) 135.8 427.2 358.1 Changes in construction payable 0.6 (2.6) (3.7) (14.8) Other - (6.9) - -------------------------------------------------------------------- (125.1) (286.7) 259.5 (251.7)-------------------------------------------------------------------Financing Activities Net change in short-term borrowings and short-term debt 797.7 (145.3) 359.8 (1,180.9) Long-term debt issues - - 150.0 247.4 Long-term debt repayments (400.0) (125.0) (725.0) (382.7) Non-recourse long-term debt issued by joint ventures 12.7 - 538.3 - Non-recourse long-term debt repaid by joint ventures - - (663.8) - Non-controlling interests (0.8) 3.9 (4.0) 0.2 Preferred securities issued - - - 193.5 Common shares issued 16.4 3.5 70.9 293.1 Enbridge Energy Management shares issued - 421.9 - 421.9 Preferred security distributions (6.6) (7.1) (26.7) (26.7) Preferred share dividends (1.8) (1.8) (6.9) (6.9) Common share dividends (71.3) (64.6) (283.9) (251.1)------------------------------------------------------------------- 346.3 85.5 (591.3) (692.2)-------------------------------------------------------------------Increase/(Decrease) in Cash 19.5 (205.3) 63.4 (33.3)Cash at Beginning of Period 84.6 246.0 40.7 74.0-------------------------------------------------------------------Cash at End of Period 104.1 40.7 104.1 40.7-------------------------------------------------------------------ENBRIDGE INC.CONSOLIDATED STATEMENTS OF FINANCIAL POSITION(unaudited, millions of Canadian dollars)--------------------------------------------------------------------December 31, 2003 2002--------------------------------------------------------------------ASSETSCurrent Assets Cash 104.1 40.7 Accounts receivable and other 1,138.8 817.5 Gas in storage 809.8 583.8-------------------------------------------------------------------- 2,052.7 1,442.0Property, Plant and Equipment, net 8,530.9 6,947.6Long-Term Investments 2,390.9 3,371.5Receivable from Affiliate 169.8 701.5Deferred Amounts and Other Assets 486.5 315.8Future Income Taxes 192.5 209.0-------------------------------------------------------------------- 13,823.3 12,987.4----------------------------------------------------------------------------------------------------------------------------------------LIABILITIES AND SHAREHOLDERS' EQUITYCurrent Liabilities Short-term borrowings 649.6 247.5 Accounts payable and other 894.1 714.1 Interest payable 97.0 102.6 Current maturities and short-term debt 674.9 652.3 Non-recourse current maturities and short-term debt 34.2 --------------------------------------------------------------------- 2,349.8 1,716.5Long-Term Debt 5,243.1 6,040.3Non-Recourse Long-term Debt 752.4 -Future Income Taxes 829.0 837.4Non-Controlling Interests 523.0 560.8-------------------------------------------------------------------- 9,697.3 9,155.0--------------------------------------------------------------------Shareholders' Equity Share capital Preferred securities 532.4 533.7 Preferred shares 125.0 125.0 Common shares 2,239.9 2,169.0 Retained earnings 1,511.4 1,128.1 Foreign currency translation adjustment (147.0) 12.3 Reciprocal shareholding (135.7) (135.7)-------------------------------------------------------------------- 4,126.0 3,832.4-------------------------------------------------------------------- 13,823.3 12,987.4----------------------------------------------------------------------------------------------------------------------------------------Three months ended December 31, 2003-------------------------------------------------------------------- Gas Liquids Gas Sponsored Distribution Pipelines Pipelines Investments and Services--------------------------------------------------------------------Revenues 211.6 75.9 - 554.9Gas costs - - - (419.4)Operating and administrative (78.3) (14.5) - (106.3)Depreciation (31.1) (16.9) - (58.8)--------------------------------------------------------------------Operating income/(loss) 102.2 44.5 - (29.6)Investment and other income/(expense) 1.9 2.9 48.0 (15.9)Interest and preferred equity charges (25.1) (18.1) - (40.9)Income taxes (26.0) (11.8) (19.2) 22.2--------------------------------------------------------------------Earnings applicable to common shareholders 53.0 17.5 28.8 (64.2)------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ International Corporate Consolidated--------------------------------------------------------------------Revenues 11.9 - 854.3Gas costs - - (419.4)Operating and administrative (12.8) (11.8) (223.7)Depreciation (0.4) (1.8) (109.0)--------------------------------------------------------------------Operating income/(loss) (1.3) (13.6) 102.2Investment and other income/(expense) 22.0 (5.2) 53.7Interest and preferred equity charges (0.1) (38.4) (122.6)Income taxes (0.4) 29.2 (6.0)--------------------------------------------------------------------Earnings applicable to common shareholders 20.2 (28.0) 27.3----------------------------------------------------------------------------------------------------------------------------------------Three months ended December 31, 2002-------------------------------------------------------------------- Gas Liquids Gas Sponsored Distribution Pipelines Pipelines Investments and Services--------------------------------------------------------------------Revenues 194.2 - 78.6 377.3Gas costs - - (69.5) (222.6)Operating and administrative (70.0) - (10.7) (79.6)Depreciation (40.4) - - (58.3)Writedown of Midcoast assets (5.3)--------------------------------------------------------------------Operating income/(loss) 83.8 - (6.9) 16.8Investment and other 0.1 19.8 13.6 2.6income/(expense)Interest and preferred equity charges (25.6) - (2.1) (37.8)Income taxes (21.3) (6.0) (8.1) (0.1)--------------------------------------------------------------------Earnings applicableto common shareholders 37.0 13.8 (3.5) (18.5)------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ International Corporate Consolidated--------------------------------------------------------------------Revenues 7.4 - 657.5Gas costs - - (292.1)Operating and administrative (7.6) (3.0) (170.9)Depreciation (0.8) (1.0) (100.5)Writedown of Midcoast assets (5.3)--------------------------------------------------------------------Operating income/(loss) (1.0) (4.0) 88.7Investment and other 18.0 13.8 67.9 income/(expense)Interest and preferred equity charges (0.7) (43.8) (110.0)Income taxes 1.3 21.6 (12.6)--------------------------------------------------------------------Earnings applicable to common shareholders 17.6 (12.4) 34.0----------------------------------------------------------------------------------------------------------------------------------------Year ended December 31, 2003-------------------------------------------------------------------- Gas Liquids Gas Sponsored Distribution Pipelines Pipelines Investments and Services--------------------------------------------------------------------Revenues 821.5 222.1 - 3,785.4Gas costs - - - (2,720.1)Operating and administrative (288.8) (41.2) - (415.9)Depreciation (142.6) (56.7) - (237.6)--------------------------------------------------------------------Operating income/(loss) 390.1 124.2 - 411.8Investment and otherincome/(expense) 3.4 36.6 113.1 19.8Gain on sale of assets - - 239.9 -Interest and preferred equity charges (102.1) (58.7) - (162.2)Income taxes (77.9) (32.0) (118.7) (115.8)--------------------------------------------------------------------Earnings applicableto common shareholders 213.5 70.1 234.3 153.6------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ International Corporate Consolidated--------------------------------------------------------------------Revenues 26.2 0.1 4,855.3Gas costs - - (2,720.1)Operating and administrative (30.5) (24.4) (800.8)Depreciation (2.0) (4.1) (443.0)--------------------------------------------------------------------Operating income/(loss) (6.3) (28.4) 891.4Investment and otherincome/(expense) 78.1 (42.8) 208.2Gain on sale of assets - - 239.9Interest and preferredequity charges (0.5) (161.4) (484.9)Income taxes 1.0 156.0 (187.4)--------------------------------------------------------------------Earnings applicableto common shareholders 72.3 (76.6) 667.2----------------------------------------------------------------------------------------------------------------------------------------Year ended December 31, 2002-------------------------------------------------------------------- Gas Liquids Gas Sponsored Distribution Pipelines Pipelines Investments and Services--------------------------------------------------------------------Revenues 787.7 - 1,219.0 2,513.5Gas costs - - (1,051.4) (1,526.6)Operating and administrative (282.5) - (109.5) (410.4)Depreciation (150.6) - (17.3) (229.5)Writedown of Midcoast assets (122.7)--------------------------------------------------------------------Operating income/(loss) 354.6 - (81.9) 347.0Investment and other income/(expense) 4.8 66.3 44.8 32.1Interest and preferred equity charges (99.8) - (28.1) (161.7)Income taxes (70.0) (18.5) 14.1 (93.1)--------------------------------------------------------------------Earnings/(loss) from continuing operations 189.6 47.8 (51.1) 124.3----------------------------------------------------------------------------------------------------------------------------------------Earnings from discontinued operations--------------------------------------------------------------------Earnings applicable to common shareholders------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ International Corporate Consolidated--------------------------------------------------------------------Revenues 27.2 0.1 4,547.5Gas costs - - (2,578.0)Operating and administrative (19.0) (12.7) (834.1)Depreciation (2.9) (3.6) (403.9)Writedown of Midcoast assets (122.7)--------------------------------------------------------------------Operating income/(loss) 5.3 (16.2) 608.8Investment and other income/(expense) 64.0 71.1 283.1Interest and preferred equity charges (1.6) (164.4) (455.6)Income taxes 0.3 65.1 (102.1)--------------------------------------------------------------------Earnings/(loss) fromcontinuing operations 68.0 (44.4) 334.2----------------------------------------------------------------------------------------------------------------------------------------Earnings from discontinued operations 242.3--------------------------------------------------------------------Earnings applicableto common shareholders 576.5----------------------------------------------------------------------------------------------------------------------------------------
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