EX-12.1 4 a17-26470_1ex12d1.htm EX-12.1

EXHIBIT 12.1

ENBRIDGE INC. AND SUBIDIARIES

COMPUTATION OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS

The ratio of earnings to fixed charges and preferred dividends is calculated using the Securities and Exchange Commission guidelines.

|  | For the Nine |  |  |  |  |  |  |  |  |  |  |
|  | Months Ended |  |  |  |  |  |  |  |  |  |  |
|  | September 30, |  | For the Year Ended December 31, |
|  | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013 |  | 2012 |
|  |  |  | (dollars in millions, except ratio amounts) |
Consolidated income |  | $ | 3,201 |  | $ | 2,309 |  | $ | (159 | ) | $ | 1,562 |  | $ | 490 |  | 1,015 |
Add: Provision for income taxes |  | 818 |  | 142 |  | 170 |  | 611 |  | 123 |  | 171 |
Less: Equity in earnings from equity investments |  | (752 | ) | (428 | ) | (475 | ) | (368 | ) | (330 | ) | (195 | )
Income from continuing operations before provision for income taxes and noncontrolling interest |  | 3,267 |  | 2,023 |  | (464 | ) | 1,805 |  | 283 |  | 991 |
Add: | Fixed Charges |  | 2,324 |  | 2,095 |  | 2,164 |  | 1,630 |  | 1,273 |  | 1,121 |
| Distributed income of equity investees |  | 859 |  | 599 |  | 719 |  | 564 |  | 685 |  | 634 |
Less: | Interest capitalized |  | (303 | ) | (321 | ) | (353 | ) | (416 | ) | (250 | ) | (216 | )
| Preferred dividend requirements of consolidated subsidiaries |  | (24 | ) | (2 | ) | (2 | ) | (2 | ) | (2 | ) | (2 | )
Total earnings as adjusted |  | $ | 6,123 |  | $ | 4,394 |  | $ | 2,064 |  | $ | 3,581 |  | $ | 1,989 |  | $ | 2,528 |
Fixed Charges |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense - net |  | $ | 1,704 |  | $ | 1,590 |  | $ | 1,624 |  | $ | 1,129 |  | $ | 947 |  | 841 |
Estimated interest portion of rental expense |  | 130 |  | 146 |  | 143 |  | 52 |  | 46 |  | 38 |
Interest capitalized |  | 303 |  | 321 |  | 353 |  | 416 |  | 250 |  | 216 |
Amorization of debt issuance costs |  | 187 |  | 38 |  | 44 |  | 33 |  | 30 |  | 26 |
Fixed Charges |  | $ | 2,324 |  | $ | 2,095 |  | $ | 2,164 |  | $ | 1,630 |  | $ | 1,273 |  | $ | 1,121 |
Preferred dividend pre-tax income requirements |  | 389 |  | 313 |  | (20 | ) | 357 |  | 266 |  | 174 |
Combined fixed charges and preferred dividends |  | 2,713 |  | 2,408 |  | 2,144 |  | 1,987 |  | 1,539 |  | 1,295 |
Ratio of earnings to fixed charges |  | 2.6 |  | 2.1 |  | 1.0 |  | 2.2 |  | 1.6 |  | 2.3 |
Ratio of earnings to fixed charges and preferred dividends |  | 2.3 |  | 1.8 |  | 1.0 |  | 1.8 |  | 1.3 |  | 2.0 |