10-KPeriod: FY2006

ENBRIDGE INC Annual Report, Year Ended Dec 31, 2006

Filed February 27, 2007For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. (ENB) filed its 2006 annual report on Form 40-F, confirming its status as a reporting issuer and providing an overview of its corporate governance and financial reporting controls. The company stated that its disclosure controls and procedures were effective as of December 31, 2006, with no material changes to its internal control over financial reporting during the period. Notably, Enbridge confirmed the qualification of Mr. D.A. Leslie as an audit committee financial expert, highlighting the board's commitment to financial oversight. The filing also details Enbridge's contractual obligations, presenting a clear picture of its financial commitments over the next five years and beyond. With significant long-term debt and non-recourse long-term debt making up the largest portions, investors can assess the company's leverage and future payment schedules. The report also discloses auditor fees, indicating a substantial increase in audit fees from 2005 to 2006, and affirms that all services provided by PricewaterhouseCoopers LLP were pre-approved by the Audit, Finance & Risk Committee, reinforcing transparency in the auditor-client relationship.

Key Highlights

  • 1Enbridge Inc. confirms effective disclosure controls and procedures as of December 31, 2006.
  • 2No material changes to internal control over financial reporting during the fiscal year.
  • 3Mr. D.A. Leslie is identified as an audit committee financial expert.
  • 4Total contractual obligations amount to CAD $10,533.0 million.
  • 5Long-term debt represents the largest contractual obligation, totaling CAD $7,574.4 million.
  • 6Auditor fees to PricewaterhouseCoopers LLP increased significantly from CAD $2,068,271 in 2005 to $4,636,308 in 2006.
  • 7All auditor services were pre-approved by the Audit, Finance & Risk Committee.

Frequently Asked Questions

This specific filing (Form 40-F) primarily focuses on corporate governance, disclosure controls, and contractual obligations rather than detailed financial performance metrics like revenue or profit. However, the extensive contractual obligations, particularly long-term debt, indicate significant financial commitments that investors should consider in assessing the company's leverage and future financial stability.

The most prominent financial aspect is the company's substantial contractual obligations, totaling CAD $10.5 billion. The largest components are long-term debt (CAD $7.57 billion) and non-recourse long-term debt (CAD $1.57 billion). Investors should pay close attention to the repayment schedules and the company's ability to manage this debt load.

The significant increase in auditor fees from $2.07 million in 2005 to $4.64 million in 2006, particularly in 'Audit Fees' and 'All Other Fees,' warrants attention. While all services were pre-approved, a substantial rise could indicate increased audit complexity, additional services rendered, or potentially higher costs. Investors may want to examine the Management's Discussion and Analysis (Exhibit 99.5) for further context on activities driving these fees.

According to this filing, Enbridge Inc. has stated that it has no off-balance sheet arrangements as defined by Form 40-F.