Content
Sponsored Investments
Sponsored Investments includes the Company's 27.0% ownership interest in EEP and a 41.9% voting interest in EIF. Enbridge manages the day-to-day operations of, and develops and assesses opportunities for each, including both organic growth and acquisition opportunities.
Earnings
(millions of Canadian dollars) |
2008 | 2007 | 2006 | |||||
| Enbridge Energy Partners | 59.8 | 47.3 | 36.5 | |||||
| Enbridge Income Fund | 41.1 | 39.2 | 37.8 | |||||
| Adjusted Earnings | 100.9 | 86.5 | 74.3 | |||||
| EEP – dilution gain on Class A unit issuance | 4.5 | 11.8 | – | |||||
| EEP – unrealized derivative fair value gains/(losses) | 7.2 | (6.3 | ) | 6.5 | ||||
| EEP – gain on sale of Kansas Pipeline Company | – | 3.0 | – | |||||
| EEP – impact of 2008 hurricanes and project write-offs | (2.2 | ) | – | – | ||||
| EIF – Alliance Canada shipper claim settlement | 1.3 | – | – | |||||
| EIF – impact of tax rate changes | – | 1.9 | 6.0 | |||||
| Earnings | 111.7 | 96.9 | 86.8 | |||||
Adjusted earnings from Sponsored Investments were $100.9 million for the year ended December 31, 2008 compared with $86.5 million in 2007. Adjusted earnings increased as a result of the strong performance at EEP and increased distributions from EIF.
Adjusted earnings from Sponsored Investments were $86.5 million for the year ended December 31, 2007 compared with $74.3 million in 2006. The increase in adjusted earnings was primarily a result of the strong performance at EEP.
Sponsored Investments earnings were impacted by several non-operating adjusting items:
- Earnings in 2008 and 2007 included EEP dilution gains because Enbridge did not fully participate in EEP's Class A unit offerings, decreasing Enbridge's ownership interest in EEP to 14.6%. In December 2008, the Company purchased an additional US$500.0 million in Class A units increasing Enbridge ownership interest in EEP to 27.0%. Earnings from EEP included a change in the unrealized fair value on derivative financial instruments in each period.
- 2008 earnings from EEP included non-routine costs associated with Hurricanes Gustav and Ike, of which Enbridge's share is $0.8 million for the quarter and $1.6 million for the year-to-date, as well as the write-off of certain projects cancelled due to market conditions.
- Earnings from EIF for the year ended December 31, 2008 included proceeds of $1.3 million from the settlement of a claim against a former shipper on Alliance Canada which repudiated its capacity commitment.
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Sponsored Investments Adjusted Earnings |
Earnings |
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Revenues from Sponsored Investments include only revenues from EIF as the Company accounts for its interest in EEP using the equity method. For the year ended December 31, 2008, revenues were $297.5 million compared with revenues of $270.3 million for the year ended December 31, 2007. The increase in revenue was a result of increased revenues from both higher tolls at Alliance Canada and higher allowance oil revenue from the Saskatchewan System.
For the year ended December 31, 2007, revenues were $270.3 million compared with revenues of $254.7 million for the year ended December 31, 2006. The $15.6 million increase in revenue was a result of increased tolls on the Alliance and Saskatchewan System as well as a full year contribution from the wind assets purchased in Q4-2006.
Revenues for the year ended December 31, 2008 were $14,279.6 million compared with $10,217.9 million for the year ended December 31, 2007. The increase in revenues was due to higher average commodity prices in Energy Services and EGD as well as unrealized derivative gains on risk managed forward positions.
Revenues for the year ended December 31, 2007 were $10,217.9 million compared with $8,973.2 million for the year ended December 31, 2006. The increase in revenues was a result of a significant increase in volumes transacted by Energy Services and, to a lesser extent, an increase in commodity prices for those transactions.