QUARTERLY FINANCIAL INFORMATION1
| (millions of Canadian dollars, except for per share amounts) |
| 2006 |
First |
Second |
Third |
Fourth |
Total |
| Revenues |
3,346.7 |
2,327.2 |
2,184.9 |
2,785.7 |
10,644.5 |
| Earnings applicable to common shareholders |
190.9 |
157.9 |
95.5 |
171.1 |
615.4 |
| Earnings per common share |
0.56 |
0.47 |
0.28 |
0.50 |
1.81 |
| Diluted earnings per common share |
0.56 |
0.46 |
0.28 |
0.49 |
1.79 |
| Dividends per common share |
0.2875 |
0.2875 |
0.2875 |
0.2875 |
1.15 |
| |
|
|
|
|
|
| (millions of Canadian dollars, except for per share amounts) |
| 2005 |
First |
Second |
Third |
Fourth |
Total |
| Revenues |
2,555.8 |
1,527.4 |
1,657.1 |
2,712.8 |
8,453.1 |
| Earnings applicable to common shareholders |
220.6 |
93.6 |
67.8 |
174.0 |
556.0 |
| Earnings per common share |
0.66 |
0.27 |
0.20 |
0.52 |
1.65 |
| Diluted earnings per common share |
0.65 |
0.27 |
0.20 |
0.51 |
1.63 |
| Dividends per common share |
0.2500 |
0.2500 |
0.2500 |
0.2875 |
1.0375 |
1 Quarterly Financial Information has been extracted from financial statements prepared in accordance with generally accepted accounting principles.
Quarterly operating revenue fluctuates primarily due to the seasonality of the Company’s gas distribution business. Typically, revenue peaks in the winter months during the first quarter and, to a lesser extent, in the fourth quarter when higher volumes are delivered and sold. Also, revenue and earnings are affected by variations in the weather, especially in the winter, when warmer or colder than normal temperatures can result in lower or higher distribution volumes, respectively.
| Significant items that impacted 2006 and 2005 quarterly earnings are as follows: |
 |
Fourth quarter 2006 earnings reflected higher earnings from the mainline system and Aux Sable, offset by lower earnings from EGD due primarily to warmer than normal weather and higher costs in the fourth quarter of 2006. |
|
Third quarter 2006 earnings reflected higher earnings from Enbridge System, increased earnings from the Company’s investment in EEP and the initial recognition of upside sharing in Aux Sable which resulted from high fractionation margins. |
|
Second quarter earnings in 2006 included the impact of tax rate reductions, which increased earnings by a total of
$48.9 million. Revenues in the second quarter of 2006 were higher than the second quarter of 2005 due to higher commodity prices and were offset by higher commodity costs, as EGD passes through to customers changes in the price of natural gas. |
|
First quarter earnings in 2006 reflected improved earnings in the Enbridge System more than offset by lower results from EGD, due primarily to warmer than normal weather. Revenues in the first quarter of 2006 were higher due to higher commodity prices and were offset by higher commodity costs. |
|
Fourth quarter earnings in 2005 include a gain of $7.6 million on the sale of land in CLH and a dilution gain of $4.3 million in EEP. |
|
Third quarter earnings in 2005 were negatively impacted by Hurricanes Katrina and Rita and by non-cash losses on the fair value of derivatives in EEP. |
|
First quarter earnings in 2005 include dilution gains in EEP and within Noverco totaling $11.9 million. |
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