* Q3 adjusted profit C$0.34/shr vs C$0.35 expected
* Revenue falls 8 pct to C$5.78 billion
* Shares down 1.5 pct
By Scott Haggett and Maneesha Tiwari
CALGARY, Alberta, Nov 7 Enbridge Inc,
Canada's No. 2 pipeline company, said on Wednesday a planned
expansion of its eastern Canada oil pipeline network will be
able to supply Quebec refineries, but admitted there may be room
for a rival project.
The company also reported a 13 percent rise in adjusted
third-quarter profit on higher crude oil shipments.
Enbridge plans a major expansion of its lines that carry
crude from the oil sands and the Bakken shale-oil field to
refineries in central Canada and the U.S. Midwest.
Its Eastern Access Project looks to fully reverse and
possibly expand a 240,000 barrel-per-day pipeline that now
carries imported oil from Montreal to Sarnia, Ontario.
The project faces competition from larger rival TransCanada
Corp, which is mulling the conversion of an under-used
natural gas pipeline to carry oil sands crude to refineries in
eastern Canada and, perhaps, the U.S. Eastern Seaboard and the
While some observers have fretted that Quebec's 370,000 bpd
refining market could not support both projects, Enbridge Chief
Executive Al Monaco said on Wednesday there may be room for both
projects, particularly if a line is extended to Canada's
"We're comfortable we can satisfy (Quebec demand) and ... we
have long-term commitments that underpin that," Monaco said on a
conference call. "If you look at the rest of the refining market
on the East Coast it's probably another 400,000 barrels per day
of capacity that's in the Canadian market. And then of course
the key to that is what's beyond that in terms of going to the
Philadelphia market or even further to the Atlantic basin across
the water ... Ultimately, I suppose there would be enough
capacity beyond the Quebec market to satisfy the (TransCanada)
TransCanada said last month that a line carrying up to a
million barrels per day to Eastern Canada and the U.S. East
Coast could be viable. It will make a final decision on whether
to move forward on its plan early next year.
PROFIT VS LOSS
Enbridge reported a third-quarter net profit of C$189
million ($190 million), or 24 Canadian cents per share, compared
with a loss of C$5 million, or 1 Canadian cent per share, a year
On an adjusted basis the company earned C$269 million, or 34
Canadian cents per share. Analysts expected 35 Canadian cents
per share, according to Thomson Reuters I/B/E/S.
Revenue fell 8 percent to C$5.78 billion.
The company said its Canadian Mainline, the main pipeline
network for Canadian oil exports to the United States,
transported 1,617 million barrels of liquid per day during the
quarter, up 3 percent from a year earlier.
Enbridge said strong volumes at its liquids pipelines
Shares of Enbridge were down 50 Canadian cents at C$39.59 in
afternoon trade on the Toronto Stock Exchange.