Enbridge Income Fund Holdings Inc. Reports Second Quarter Earnings of $30.6 Million or $0.43 Per Common Share; Declares Monthly Dividend
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 07/28/15 -- HIGHLIGHTS
(all financial figures are unaudited and in Canadian dollars unless otherwise noted)
Enbridge Income Fund Holdings Inc. (TSX: ENF) announced earnings of $30.6 million, or $0.43 per common share, for the three months ended June 30, 2015, and $61.5 million, or $0.87 per common share, for the six months ended June 30, 2015, reflecting distributions received from its investment in the Fund.
The Company's financial performance is a direct reflection of the Fund's ability to generate cash for distribution. The Fund's CAFD for the three and six month periods ended June 30, 2015 was $92.5 million and $187.6 million, respectively, increases of 22.0 percent and 25.2 percent over the corresponding periods of 2014. Further, the Fund's adjusted earnings were $53.3 million for the second quarter of 2015 and $105.9 million for first half of 2015, increases of $22.2 million and $37.7 million, respectively, compared to the same periods of 2014. The improvements in both CAFD and adjusted earnings were driven by incremental cash flows generated by the November 2014 acquisition of Enbridge's 50 percent interest in the U.S. segment of the Alliance Pipeline (Alliance US) and the subscription for and purchase of Class A Units which provide a defined cash flow stream from the Canadian and U.S. portions of the Southern Lights Pipeline (Southern Lights Class A Units), collectively, the 2014 Transaction.
"The Fund has performed well in the first half of the year. Our strong and diversified asset base continues to deliver reliable cash flows which are further strengthened by the investments made in the fourth quarter of 2014," said Enbridge Income Fund Holdings Inc. President Perry Schuldhaus.
"Additionally, reaching an agreement to acquire Enbridge's Canadian Liquids Pipelines business and certain Canadian renewable energy assets marks a significant milestone in our plan to transform the Fund into a premier energy infrastructure investment vehicle," said Mr. Schuldhaus. "This transaction will significantly increase the scale and scope of our business and enhance our portfolio of high-quality infrastructure assets. Assuming the closing of the transaction, the Company will be very well positioned to deliver visible and superior dividend growth supported by its anticipated 10 percent dividend increase following close of the transaction. A further 10 percent increase is expected at the beginning of 2016 and each year thereafter through 2019."
SECOND QUARTER 2015 OVERVIEW
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 .
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 a portfolio of liquids transportation and storage businesses, Class A units entitling the holder to receive defined cash flows from the Southern Lights Pipeline, a 50 percent interest in the Alliance Pipeline and interests in more than 500 megawatts of renewable and alternative power generation capacity. Information about Enbridge Income Fund Holdings Inc. is available on the Company's website at .
FORWARD-LOOKING INFORMATION
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about the Company and its investee, the Fund, and the Fund's subsidiaries and joint ventures, including management's assessment of future plans and operations of the Company and the Fund. 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. Forward-looking statements or statements included or incorporated by reference in this document include, but are not limited to, statements with respect to the following: expected earnings/(loss) or adjusted earnings/(loss); expected earnings/(loss) per share; expected CAFD; expected future cash flows; expected capital expenditures; estimated future dividends or distributions; expectations regarding, and anticipated impact and timing of, the 2015 Transaction; dividend payout policy and dividend payout expectation; satisfaction of closing conditions and the obtaining of consents and approvals required to complete the 2015 Transaction.
Although the Company believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes 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 following: the expected supply and demand for crude oil, natural gas, natural gas liquids and renewable energy; prices of crude oil, natural gas, natural gas liquids and renewable energy; expected exchange rates; inflation; interest rates; availability and price of labour and pipeline construction materials; operational reliability; customer and regulatory approvals; maintenance of support and regulatory approvals for the Fund's projects; anticipated in-service dates; weather; expected timing and terms of the 2015 Transaction; anticipated completion of the 2015 Transaction and satisfaction of all closing conditions and receipt of regulatory, shareholder and third party consents and approvals with respect to the 2015 Transaction; the impact of the 2015 Transaction on the Company's or the Fund's future cash flows and capital project funding; impact of the 2015 Transaction on the Company's or the Fund's credit rating; expected earnings/(loss) or adjusted earnings/(loss);
expected earnings/(loss) per share; expected future cash flows and expected future Fund CAFD; and estimated future dividends or distributions. Assumptions regarding the expected supply of and demand for crude oil, natural gas, natural gas liquids and renewable energy, and the prices of these commodities, are material to and underlie 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 operate and may impact level 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/(loss), adjusted earnings/(loss), CAFD and applicable per share amounts, the impact of the 2015 Transaction or estimated future dividends or distributions. The most relevant assumptions associated with forward-looking statements and projects under construction, including estimated completion dates and expected capital expenditures include the following: availability and price of labour and pipeline construction materials; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; the impacts of weather; and customer and regulatory approvals on construction and in-service schedules.
The Company's and the Fund's forward-looking statements are subject to risks and uncertainties pertaining to the 2015 Transaction, operating performance, regulatory parameters, project approval and support, weather, economic and competitive conditions, changes in tax law and tax rate increases, exchange rates, interest rates, commodity prices and supply of and demand for commodities, 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 or 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 applicable 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 adjusted earnings and cash available for distribution (CAFD). Adjusted earnings represents earnings adjusted for unusual, non-recurring or non-operating factors on both a consolidated and segmented basis. These factors, referred to as adjusting items, are reconciled and discussed in the financial results sections. CAFD represents the Fund's cash available to fund distributions on trust units and ECT preferred units as well as for debt repayments and reserves. CAFD consists of operating cash flow from the Fund's underlying businesses less deductions for maintenance capital expenditures, the Fund's administrative and operating expenses, corporate segment interest expense, applicable taxes and other reserves pertaining to items of an unusual or transient nature which are not indicative of the underlying or sustainable cash flows of the business. CAFD is important to unitholders as the Fund's objective is to provide a predictable flow of distributions to unitholders. Management believes the presentation of adjusted earnings and CAFD provides useful information to investors and unitholders as it provides increased transparency and predictive value. Management uses adjusted earnings and CAFD to set targets, including the Fund's distribution payout target, and to assess the performance of the Company. Adjusted earnings and CAFD are not measures that have standardized meaning prescribed by United States Generally Accepted Accounting Principles (U.S. GAAP) and are not considered U.S. GAAP measures. Therefore, these measures may not be comparable with similar measures presented by other issuers. The following table provides a reconciliation of the GAAP and non-GAAP measures.
ENBRIDGE INCOME FUND NON-GAAP RECONCILIATIONS
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Datum: 28.07.2015 - 13:00 Uhr
Sprache: Deutsch
News-ID 409610
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CALGARY, ALBERTA
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Oil & Gas
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