Welcome!

News Feed Item

Enbridge Income Fund Holdings Inc. Announces First Quarter Results; Declares Monthly Dividend

CALGARY, ALBERTA -- (Marketwired) -- 05/05/14 --

HIGHLIGHTS

(all financial figures are unaudited and in Canadian dollars)

--  Enbridge Income Fund Holdings Inc. (the Company) delivered earnings for
    the first quarter ended March 31, 2014 of $21.7 million ($0.38 per
    common share) compared to earnings of $21.2 million ($0.40 per common
    share) for the first quarter ended March 31, 2013.

--  The Company's investee, Enbridge Income Fund (the Fund), generated cash
    available for distribution (CAFD) of $73.5 million in the first quarter
    of 2014 compared to $70.2 million in the first quarter of 2013 primarily
    as a result of strong contributions from the Fund's renewable power
    generation assets and a full quarter of contribution from the Bakken
    Expansion. 

--  A monthly dividend of $0.1146 per common share was declared by the
    Company's Board of Directors to be paid on June 16, 2014.

Enbridge Income Fund Holdings Inc. (TSX:ENF) announced today earnings of $21.7 million, or $0.38 per common share, for the three months ended March 31, 2014, reflecting distributions received from its investment in Enbridge Income Fund.

The Company's financial performance is a direct reflection of the Fund's ability to generate cash for distribution. The Fund's CAFD totaled $73.5 million for the three months ended March 31, 2014 compared with $70.2 million for the same period in the prior year. The improvement in CAFD is primarily due to increased cash flow generated by the Fund's renewable power generation assets which benefitted from strong wind and solar resource in the quarter. CAFD also reflected a full quarter of cash flow contributions from the Bakken Expansion which was placed into service on March 1, 2013, and higher contributions from the Alliance Canada natural gas transportation segment.

"The Fund's strong first quarter results are a reflection of all three business segments performing well. We continue to deliver on our objective to provide reliable and predictable cash returns to our shareholders," said Perry Schuldhaus, President of Enbridge Income Fund Holdings Inc. "Our renewable power generation facilities were a major contributor to earnings this quarter and the Fund achieved solid performance within its gas transmission and liquids transportation and storage businesses.

"The Fund's strategy includes further growth through acquisition and development of complementary energy infrastructure. We remain well positioned to respond to acquisition opportunities including through asset drop downs into the Fund from our sponsor, Enbridge Inc., as contemplated in Enbridge Inc.'s announced funding strategy," said Mr. Schuldhaus.

On May 5, 2014, the Company's Board of Directors declared a monthly cash dividend of $0.1146 per common share to be paid on June 16, 2014 to shareholders of record at the close of business on June 2, 2014. The dividend is designated an eligible dividend for Canadian tax purposes which qualifies for the enhanced dividend tax credit.

FIRST QUARTER 2014 REVIEW

The unaudited financial statements and Management's Discussion and Analysis (MD&A) of both the Company and the Fund, which contain additional notes and disclosures, are available on the Company's website at www.enbridgeincomefund.com.

--  The Company's earnings for the first quarter ended March 31, 2014 were
    $21.7 million ($0.38 per common share) compared with $21.2 million
    ($0.40 per common share) for the first quarter ended March 31, 2013.
    First quarter 2014 earnings reflected a 1% per unit increase in the
    Fund's distribution to the Company effective November 2013 combined with
    the Company's increased ownership in the Fund following the February
    2013 acquisition of 4,768,000 trust units. Earnings for the first
    quarter ended March 31, 2014 were impacted by higher income tax expense
    compared to the first quarter ended March 31, 2013 as a result of an
    increase in the estimated taxability of distributions paid by the Fund.

--  The Fund generated cash available for distribution for the three months
    ended March 31, 2014 of $73.5 million compared to $70.2 million for the
    three months ended March 31, 2013 as a result of strong contributions
    from each of the Fund's operating segments: Green Power, Liquids
    Transportation and Storage and Alliance Canada. The Fund's Green Power
    assets had a strong start to 2014 as a result of strong wind and solar
    resource. The Fund's Liquids Transportation and Storage segment
    reflected a full quarter contribution from the Bakken Expansion which
    was placed into service on March 1, 2013 and a steady contribution from
    the Fund's crude oil storage business. Within the Alliance Canada
    segment, the Fund's investee Sable NGL Services L.P. (Sable), a joint
    venture that holds capacity on the Alliance system, benefitted from
    large differentials between the cost of natural gas in Western Canada
    and the sales price of natural gas in the Chicago area which arose due
    to abnormal winter weather conditions. Strong performance from the
    Fund's operating businesses was partially offset by higher current
    income tax expense recorded within the Fund's Corporate segment. 

--  The Company's Board of Directors declared monthly dividends of $0.1146
    per common share for each of January, February and March 2014. In
    addition, monthly dividends of $0.1146 per common share were declared on
    April 15, 2014 and on May 5, 2014 for payment to shareholders on May 15,
    2014 and June 16, 2014, respectively. 

ABOUT ENBRIDGE INCOME FUND HOLDINGS INC.

Enbridge Income Fund Holdings Inc. is a publicly traded corporation. The Company, through its investment in Enbridge Income Fund, holds high quality, low risk energy infrastructure assets. The Fund's assets include interests in more than 500 megawatts of renewable and alternative power generation capacity, a portfolio of liquids transportation and storage businesses and a 50% interest in the Canadian segment of the Alliance Pipeline. Information about Enbridge Income Fund Holdings Inc. is available on the Company's website at www.enbridgeincomefund.com.

FORWARD LOOKING INFORMATION

In the interest of providing the Company's shareholders and potential investors with information about the Company and its investee, the Fund, and the Fund's subsidiaries and joint ventures, including management's assessment of the Company's and the Fund's future plans and operations, certain information provided in this News Release constitutes forward-looking statements or information (collectively, "forward-looking statements"). This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe" and similar words suggesting future outcomes or statements regarding an outlook. In particular, forward-looking statements include:

--  expected earnings or earnings per share; 
--  expected costs related to projects under construction; 
--  expected scope and in-service dates for projects under construction; 
--  expected timing and amount of recovery of capital costs of assets; 
--  expected capital expenditures; 
--  expected future dividends, Fund distributions and taxability thereof; 
--  the Fund's expected cash available for distribution; and 
--  expected future actions of regulators.

Although the Company believes that these forward-looking statements are reasonable based on the information available on the date such statements are made and processes are used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about: the expected supply and demand for crude oil, natural gas and natural gas liquids; prices of crude oil, natural gas and natural gas liquids; expected exchange rates; inflation; interest rates; the availability and price of labour and pipeline construction materials; operational reliability; customer project approvals; maintenance of support and regulatory approval for the Fund's projects; anticipated in-service dates and weather. Assumptions regarding the expected supply and demand of crude oil, natural gas and natural gas liquids, and the prices of these commodities, are material to and underlay all forward-looking statements. These factors are relevant to all forward-looking statements as they may impact current and future levels of demand for the Fund's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company and the Fund operates, may impact levels of demand for the Fund's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to expected earnings and associated per unit or per share amounts, or estimated future distributions or dividends. The most relevant assumptions associated with forward-looking statements on projects under construction, including estimated in-service dates and expected capital expenditures, include: the availability and price of labour and pipeline construction materials; the effects of inflation on labour and material costs; the effects of interest rates on borrowing costs; and the impact of weather, customer and regulatory approvals on construction schedules.

The Company's forward-looking statements, and forward looking statements with respect to the Fund, are subject to risks and uncertainties pertaining to operating performance, regulatory parameters, project approval and support, weather, economic conditions, changes in tax law, tax rates, exchange rates, interest rates and commodity prices, including but not limited to those risks and uncertainties discussed in this News Release and in the Company's and the Fund's other filings with Canadian securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and the Company's and the Fund's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by law, the Company and the Fund assume no obligation to publicly update or revise any forward-looking statements made in this News Release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements whether written or oral, attributable to the Company or the Fund or persons acting on the Company's or the Fund's behalf, are expressly qualified in their entirety by these cautionary statements.

NON-GAAP MEASURES

This News Release contains references to the Fund's cash available for distribution (CAFD). CAFD represents the Fund's cash available to fund distributions on Fund Units and ECT Preferred Units as well as for debt repayments and reserves. This measure is important to shareholders as the Company's objective is to provide a predictable flow of dividends to shareholders and the Company's cash flows are derived from its investment in the Fund. CAFD is not a measure that has standardized meaning prescribed by United States Generally Accepted Accounting Principles (U.S.GAAP) and is not considered a GAAP measure. Therefore, this measure may not be comparable with similar measures presented by other issuers. The Fund's CAFD reconciliation is as follows:

Three months ended March 31,                                 2014      2013 
----------------------------------------------------------------------------
(millions of Canadian dollars)                                              
Cash provided by operating activities                        53.1      49.6 
  Add/(deduct):                                                             
  Green Power maintenance capital expenditures               (0.3)     (0.1)
  Green Power joint ventures cash distributed/(retained)      0.2      (0.1)
  Liquids Transportation and Storage maintenance capital                    
   expenditures                                              (0.6)     (1.1)
  Change in operating assets and liabilities in the                         
   period                                                    21.1      21.9 
----------------------------------------------------------------------------
Cash available for distribution                              73.5      70.2 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

SELECTED FINANCIAL AND OPERATING HIGHLIGHTS

                                                          Three months ended
ENBRIDGE INCOME FUND HOLDINGS INC.                                 March 31,
                                                                            
                                                          2014          2013
----------------------------------------------------------------------------
(unaudited; millions of Canadian dollars, except                            
 share and per share amounts)                                               
Earnings                                                  21.7          21.2
  Earnings per common share, basic and diluted   $        0.38 $        0.40
Cash provided by operating activities                     18.2          17.3
Dividends declared                                        19.4          18.3
  Dividends per common share                     $       0.344 $       0.334
Number of common shares outstanding                 56,491,000    56,491,000
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                        Three months ended  
ENBRIDGE INCOME FUND(1)                                           March 31, 
                                              ------------------------------
                                                        2014           2013 
----------------------------------------------------------------------------
(unaudited; millions of Canadian dollars,                                   
 except unit and per unit amounts)                                          
Earnings                                                                    
  Green Power                                           30.7           26.1 
  Liquids Transportation and Storage(2)                 19.2            2.7 
  Alliance Canada                                       20.1           12.3 
  Corporate(2)                                         (33.7)         (27.5)
----------------------------------------------------------------------------
                                                        36.3           13.6 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash available for distribution(3)                                          
  Green Power                                           46.1           41.2 
  Liquids Transportation and Storage                    36.1           33.1 
  Alliance Canada                                       19.5           17.9 
  Corporate                                            (28.2)         (22.0)
----------------------------------------------------------------------------
                                                        73.5           70.2 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash provided by operating activities                   53.1           49.6 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Distributions                                                               
  Cash distributions declared                           56.2           54.4 
  Distributions per trust unit and ECT                                      
   preferred unit                              $       0.406  $       0.403 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Units outstanding                                                           
  ECT preferred units                             72,465,750     72,465,750 
  Trust units                                     65,991,000     65,991,000 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Operating results                                                           
  Green Power (thousands of megawatt hours                                  
   produced)                                                                
    Wind Facilities                                    360.4          354.3 
    Solar Facilities                                    30.4           23.9 
    Waste Heat Facilities                               20.5           19.2 
  Liquids Transportation and Storage                                        
   (thousands of barrels per day)                                           
    Westspur System                                    176.2          161.2 
    Saskatchewan Gathering System                      134.2          112.0 
    Weyburn System                                      31.5           31.8 
    Virden System                                       26.2           24.7 
    Bakken Expansion                                     8.9              - 
  Alliance Canada (millions of cubic feet per                               
   day)                                              1,652.0        1,643.0 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(1) Financial Highlights for Enbridge Income Fund have been extracted from financial statements prepared in accordance with U.S. GAAP.

(2) Earnings for the three months ended March 31, 2013 are presented after the effects of the $12.0 million after tax write-off of rate regulated assets.

(3) See Non-GAAP Measures.

Contacts:
Enbridge Income Fund Holdings Inc.
Graham White
Media
(403) 508-6563 or (888) 992-0997
[email protected]

Enbridge Income Fund Holdings Inc.
Teri Majer
Investment Community
(403) 508-3185
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
DXWorldEXPO LLC, the producer of the world's most influential technology conferences and trade shows has announced the 22nd International CloudEXPO | DXWorldEXPO "Early Bird Registration" is now open. Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, provided a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services with...
Containers are rapidly finding their way into enterprise data centers, but change is difficult. How do enterprises transform their architecture with technologies like containers without losing the reliable components of their current solutions? In his session at @DevOpsSummit at 21st Cloud Expo, Tony Campbell, Director, Educational Services at CoreOS, will explore the challenges organizations are facing today as they move to containers and go over how Kubernetes applications can deploy with lega...
In their session at @DevOpsSummit at 21st Cloud Expo, Michael Berman, VP Engineering at TidalScale, and Ivo Jimenez, Engineer at TidalScale, will describe how automating tests in TidalScale is easy thanks to WaveRunner. They will show how they use WaveRunner, Jenkins, and Docker to have agile delivery of TidalScale. Michael Berman is VP Engineering at TidalScale. TidalScale is developing a scale up compute and resource architecture for customers to perform big data exploration and real time anal...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
I think DevOps is now a rambunctious teenager - it's starting to get a mind of its own, wanting to get its own things but it still needs some adult supervision," explained Thomas Hooker, VP of marketing at CollabNet, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"With Digital Experience Monitoring what used to be a simple visit to a web page has exploded into app on phones, data from social media feeds, competitive benchmarking - these are all components that are only available because of some type of digital asset," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The “Digital Era” is forcing us to engage with new methods to build, operate and maintain applications. This transformation also implies an evolution to more and more intelligent applications to better engage with the customers, while creating significant market differentiators. In both cases, the cloud has become a key enabler to embrace this digital revolution. So, moving to the cloud is no longer the question; the new questions are HOW and WHEN. To make this equation even more complex, most ...
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
Learn how to solve the problem of keeping files in sync between multiple Docker containers. In his session at 16th Cloud Expo, Aaron Brongersma, Senior Infrastructure Engineer at Modulus, discussed using rsync, GlusterFS, EBS and Bit Torrent Sync. He broke down the tools that are needed to help create a seamless user experience. In the end, can we have an environment where we can easily move Docker containers, servers, and volumes without impacting our applications? He shared his results so yo...
Creating replica copies to tolerate a certain number of failures is easy, but very expensive at cloud-scale. Conventional RAID has lower overhead, but it is limited in the number of failures it can tolerate. And the management is like herding cats (overseeing capacity, rebuilds, migrations, and degraded performance). In his general session at 18th Cloud Expo, Scott Cleland, Senior Director of Product Marketing for the HGST Cloud Infrastructure Business Unit, discussed how a new approach is neces...
"This week we're really focusing on scalability, asset preservation and how do you back up to the cloud and in the cloud with object storage, which is really a new way of attacking dealing with your file, your blocked data, where you put it and how you access it," stated Jeff Greenwald, Senior Director of Market Development at HGST, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...