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Financial Update

Enbridge had another financially strong year in 2007. Earnings of $700.2 million were 14 per cent higher than the previous year’s earnings of $615.4 million.

Enbridge exceeded our strategic objectives in 2007. We brought in more new business than in any prior year in our history, securing commercial agreements on over $5 billion in growth projects.

Added to the $7 billion of projects already in our portfolio and a potential $15 billion second wave of growth, we now have a huge pipeline of opportunities that have the potential to deliver outstanding shareholder value for many years to come.

Significant operating factors that increased earnings in 2007 included:

  • customer growth and higher operating margins at Enbridge Gas Distribution;
  • strong operating results and an increased ownership interest in Enbridge Energy Partners; and,
  • lower corporate costs primarily due to lower interest expense.

Significant operating factors that decreased earnings in 2007 included:

  • lower earnings from Aux Sable, a natural gas liquids extraction and fractionation business, due to realized derivative losses; and,
  • the impact of a weaker U.S. dollar on all U.S.-based pipelines.