January 25, 1999
ENBRIDGE INC.(formerly IPL Energy Inc.)HIGHLIGHTS(1)-------------------------------------------------------------- Three months ended Year ended December 31, December 31,(Canadian dollars in millions, except per share amounts) 1998 1997 1998 1997--------------------------------------------------------------FINANCIALEarnings Energy Transportation 45.6 31.2 176.7 122.5 Energy Distribution (42.1) (34.8) 91.1 124.2 Corporate (11.2) (1.6) (26.9) (29.4)--------------------------------------------------------------Consolidated Earnings (7.7) (5.2) 240.9 217.3----------------------------------------------------------------------------------------------------------------------------Operating Revenue Energy Transportation 119.9 131.8 514.6 518.1 Energy Distribution 233.3 214.2 1,827.1 2,001.9--------------------------------------------------------------Consolidated Operating Revenue 353.2 346.0 2,341.7 2,520.0----------------------------------------------------------------------------------------------------------------------------Cash Provided by Operating Activities(2) Earnings plus charges (credits) not affecting cash 93.2 49.9 536.1 488.2 Changes in working capital (189.2) (52.3) (219.9) (44.4)-------------------------------------------------------------- (96.0) (2.4) 316.2 443.8----------------------------------------------------------------------------------------------------------------------------Dividends 44.7 40.4 168.3 147.1Per Share Amounts Earnings (0.13) (0.13) 3.31 3.15 Dividends 0.575 0.545 2.24 2.12Weighted Average Shares Outstanding (millions) 72.7 68.9----------------------------------------------------------------------------------------------------------------------------OPERATINGEnergy Transportation(3) Deliveries (thousands of barrels per day) 2,095 2,259 2,136 2,083 Barrel miles (billions) 190 203 771 771 Average haul (miles) 987 977 989 1,014Energy Distribution Gas distribution volumes (billion cubic feet) 44 46 397 428 Number of active customers (thousands) 1,414 1,362 1,414 1,362 Degree day deficiency(4) Actual 43 115 3,352 4,011 Forecast based on normal weather 94 125 4,079 4,003----------------------------------------------------------------------------------------------------------------------------
1. Highlights of Energy Distribution reflect the results of
Enbridge Consumers Gas (The Consumers' Gas Company Ltd.) and other
gas distribution assets on a quarter lag basis of consolidation
for the three and twelve months ended September 30, 1998 and 1997.
2. Prior years' amounts have been restated to conform to the new
Statement of Cash Flows standard adopted in 1998.
3. Energy Transportation operating highlights include the
statistics of the 16.6 percent owned portion of the mainline
system located in the United States.
4. Degree day deficiency is a measure of coldness which is
indicative of volumetric requirements of natural gas utilized for
heating purposes in all markets. It is calculated by accumulating
from October 1 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.(formerly IPL Energy Inc.)CONSOLIDATED STATEMENT OF EARNINGS--------------------------------------------------------------(Audited; Canadian dollars in millions, except per share amounts)--------------------------------------------------------------Year ended December 31, 1998 1997 1996--------------------------------------------------------------Operating Revenue Gas sales 1,416.1 1,763.9 1,749.8 Transportation 624.8 537.3 516.1 Other 300.8 218.8 192.0-------------------------------------------------------------- 2,341.7 2,520.0 2,457.9--------------------------------------------------------------Expenses Gas costs 865.0 1,036.4 1,064.3 Operating and administrative 675.0 638.4 576.3 Depreciation 309.0 274.0 237.0-------------------------------------------------------------- 1,849.0 1,948.8 1,877.6--------------------------------------------------------------Operating Income 492.7 571.2 580.3Investment and Other Income 156.4 76.5 31.7Interest Expense (312.9) (276.1) (271.3)--------------------------------------------------------------Earnings Before Undernoted 336.2 371.6 340.7Income Taxes (95.3) (154.3) (138.3)-------------------------------------------------------------- 240.9 217.3 202.4Minority Interest - - (22.1)--------------------------------------------------------------Earnings 240.9 217.3 180.3----------------------------------------------------------------------------------------------------------------------------Earnings Per Share 3.31 3.15 2.90----------------------------------------------------------------------------------------------------------------------------CONSOLIDATED STATEMENT OF RETAINED EARNINGS--------------------------------------------------------------(Audited; Canadian dollars in millions, except per share amounts)--------------------------------------------------------------Year ended December 31, 1998 1997 1996--------------------------------------------------------------Retained Earnings at Beginning of Year 336.7 266.5 212.1Earnings 240.9 217.3 180.3Preferred Share Issue Costs (1.7) - -Dividends (168.3) (147.1) (125.9)--------------------------------------------------------------Retained Earnings at End of Year 407.6 336.7 266.5----------------------------------------------------------------------------------------------------------------------------Dividends Per Share 2.24 2.12 2.03----------------------------------------------------------------------------------------------------------------------------ENBRIDGE INC.(formerly IPL Energy Inc.)CONSOLIDATED STATEMENT OF CASH FLOWS--------------------------------------------------------------(Audited; Canadian dollars in millions)--------------------------------------------------------------Year ended December 31, 1998 1997 1996-------------------------------------------------------------- (restated)(restated)Cash Provided from Operating Activities Earnings 240.9 217.3 180.3 Charges (credits) not affecting cash: Depreciation 309.0 274.0 237.0 Deferred income taxes (26.1) (0.1) 12.6 Minority interest - - 22.1 Other 12.3 (3.0) 12.8 Changes in non cash working capital (219.9) (44.4) 27.8-------------------------------------------------------------- 316.2 443.8 492.6--------------------------------------------------------------Investing Activities Long term investments (181.0) (434.8) (65.0) Acquisition of subsidiaries and joint ventures (76.1) (3.6) (168.7) Additions to property, plant and equipment (1,388.4) (651.4) (560.5) Changes in non cash working capital 61.9 36.2 - Other (10.6) (11.3) (28.2)-------------------------------------------------------------- (1,594.2) (1,064.9) (822.4)--------------------------------------------------------------Financing Activities Variable rate financing, net 349.0 130.6 197.4 Fixed rate financing, net 829.6 359.5 107.4 Minority interest - - (8.6) Preferred shares 123.3 - - Common shares 218.0 315.6 141.5 Dividends (168.3) (147.1) (125.9)-------------------------------------------------------------- 1,351.6 658.6 311.8--------------------------------------------------------------Increase (Decrease) in Cash 73.6 37.5 (18.0)Cash at Beginning of Year 51.3 13.8 31.8--------------------------------------------------------------Cash at End of Year 124.9 51.3 13.8----------------------------------------------------------------------------------------------------------------------------Prior years' amounts have been restated to conform to the newStatement of Cash Flows standard adopted in 1998.ENBRIDGE INC.(formerly IPL Energy Inc.)CONSOLIDATED STATEMENT OF FINANCIAL POSITION--------------------------------------------------------------(Audited; Canadian dollars in millions)--------------------------------------------------------------December 31, 1998 1997--------------------------------------------------------------ASSETSCurrent Assets Cash 124.9 51.3 Accounts receivable and other 611.3 436.6 Gas in storage 357.8 309.9-------------------------------------------------------------- 1,094.0 797.8Long Term Investments 676.9 517.3Deferred Charges and Other 212.1 142.1Property, Plant and Equipment, Net 6,364.2 5,215.0-------------------------------------------------------------- 8,347.2 6,672.2----------------------------------------------------------------------------------------------------------------------------LIABILITIES AND SHAREHOLDERS' EQUITYCurrent Liabilities Short term borrowings 400.4 398.8 Accounts payable and other 540.9 493.3 Interest payable 87.9 70.9 Current portion of long term liabilities 257.5 409.4-------------------------------------------------------------- 1,286.7 1,372.4Long Term Debt 4,502.3 3,166.4Deferred Credits 116.3 59.8Deferred Income Taxes 380.5 374.2-------------------------------------------------------------- 6,285.8 4,972.8--------------------------------------------------------------Shareholders' Equity Share capital Preferred shares 125.0 - Common shares Issued - 1998 - 77,855,000 (1997 - 74,164,000) 1,659.8 1,441.8 Retained earnings 407.6 336.7 Foreign currency translation adjustment (9.1) 12.9 Reciprocal shareholding (121.9) (92.0)-------------------------------------------------------------- 2,061.4 1,699.4-------------------------------------------------------------- 8,347.2 6,672.2----------------------------------------------------------------------------------------------------------------------------