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.

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
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of (at least) three separate application components: the software embedded in the device, the back-end service, and the mobile application for the end user’s controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/target –...
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It doe...
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
As cloud adoption continues to transform business, today’s global enterprises are challenged with managing a growing amount of information living outside of the data center. The rapid adoption of IoT and increasingly mobile workforce are exacerbating the problem. Ensuring secure data sharing and efficient backup poses capacity and bandwidth considerations as well as policy and regulatory compliance issues.
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Between the mockups and specs produced by analysts, and resulting applications built by developers, there exists a gulf where projects fail, costs spiral, and applications disappoint. Methodologies like Agile attempt to address this with intensified communication, with partial success but many limitations. In his session at @DevOpsSummit at 19th Cloud Expo, Charles Kendrick, CTO at Isomorphic Software, will present a revolutionary model enabled by new technologies. Learn how business and deve...
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...