BUSINESS

Enbridge Line 9B Reversal Project Delayed After NEB Requests Additional Info

11/05/2014 07:16 EST | Updated 01/05/2015 05:59 EST
CP
CALGARY - Enbridge Inc. reported Wednesday a net loss of $80 million in its latest quarter as it warned its plan to reverse the flow of a pipeline running between southern Ontario and Montreal has been delayed.

The pipeline company said the National Energy Board approved the project subject to conditions in March, however the board has requested additional information related to one of the conditions.

"Our objective with the Line 9B project has always been to meet, if not exceed, regulatory requirements and to assure our stakeholders of our commitment to operate our pipeline safely and protect the environment," Enbridge president and chief executive Al Monaco said in a statement.

"We have responded to the board's request for clarification of our approach and additional information. We continue to work with the Board to understand and respond to its questions and to meet its requirements."

Enbridge said its net loss for the quarter amounted to 10 cents per share for the quarter ended Sept. 30 compared with a profit of $421 million or 51 cents per share a year ago.

However, adjusted earnings, which excluded unrealized derivative gains and losses and other one-time items, amounted to $345 million or 41 cents per share, up from $278 million or 34 cents per share a year ago.

Revenue totalled $8.3 billion, down from $9 billion in the same quarter last year.

Enbridge said its full year adjusted earnings are on track to meet its guidance for $1.84 to $2.04 per share.

The company's Line 9, built in 1976, originally shipped oil from Sarnia, Ont., to Montreal, but was reversed in the late 90s in response to market conditions to pump imported crude westward. Enbridge wants to switch the direction back.

The company plans to move 300,000 barrels of crude oil per day through the line, up from the current 240,000 barrels, with no increase in pressure.

Opponents, however, have argued Enbridge's plan puts communities at risk, threatens water supplies and could endanger vulnerable species in ecologically sensitive areas.

Earlier on HuffPost:

Enbridge Northern Gateway Pipeline Protest At MP Offices