CSR Highlights
Enbridge had another financially strong year in 2007. Our earnings increased 14 per cent to $700.2 million and earnings per share rose nine per cent to $1.97, reflecting solid operating performance in all of our core businesses.
Total shareholder return, which has averaged 13 per cent over the past 10 years, was just three per cent in 2007 as we invested a lot of new capital to provide the basis for significant future earnings growth. Returns have averaged over 13 per cent over the past 54 years, based on our strategy of investing in the future.
With Canadian oilsands production expanding quickly, Canada and Enbridge are set to play an even larger role in providing North American markets with a secure and reliable source of crude oil supply.
Enbridge and Enbridge Energy Partners in the U.S. are now fully engaged in building $12 billion in new Liquids Pipelines projects that will come into service starting in 2008, and that represent the largest capital program in our history. All of these projects are commercially secured and have terms that support or enhance our low-risk business profile. We are also competing for another $15-billion worth of opportunities that could come into service beginning in 2011. These growth projects include mainline expansions, new market access through mainline extensions, regional pipelines, and contract terminalling.
Enbridge’s Gas Transportation assets in Canada and the U.S., as well as Enbridge Gas Distribution, which is Canada’s largest natural gas distribution utility and the second fastest growing utility in North America, are also equally well positioned strategically for growth.
Enbridge’s growth is benefiting not only our shareholders, but also the countries in which we operate. In 2007, we paid out $595 million in salaries and benefits to our employees. We also paid $226 million in income taxes to governments, $607 million in interest payments to lenders, and $452 million in dividend payments to shareholders, all of which strengthen the North American economy.
Our growth has also enabled us to strengthen the communities with which we interact. In 2007, Enbridge invested over $8.3 million in community infrastructure and programming.
Our conversations with Perrin Beatty, President & CEO, Canadian Chamber of Commerce, and Phil Fontaine, National Chief, Assembly of First Nations, highlight some of the ideas we’re listening to with regard to our economic impact on our world, and how we can ensure that our growth is sustainable.
In the midst of this growth we face significant challenges. Costs of labour and materials have hit an all-time high. Maintaining our position as a leader in developing climate change solutions means that we must continually invest in new technologies. And, executing our projects on time and on budget means that we must always keep our focus on operational excellence.
But in this climate of change, we’re committed to the kind of good thinking that got us to where we are today. We’re also committed to collaborating with leading thinkers in industry, government, environment and consumer groups, so that we benefit from their ideas – and they benefit from our successes.