Get Premium Data for Cyber Monday: Up to 55% Off InvestingProCLAIM SALE

Enbridge's Q3 profit more than doubles on acquisition contributions

Published 2024-11-01, 07:09 a/m
© Reuters. FILE PHOTO: Storage tanks are seen at Enbridge’s terminal located outside Manhattan, Illinois, U.S., June 26, 2024. REUTERS/Nicole Jao/File Photo
ENB
-

By Tanay Dhumal and Nia Williams

(Reuters) - Enbridge (TSX:ENB)'s third-quarter profit more than doubled from a year ago, the Canadian energy infrastructure company said on Friday, citing incremental contributions from U.S. gas acquisitions, and it raised its estimate of organic growth opportunities.

The Calgary-based company, which owns Canada's biggest oil export network and is North America's largest gas utility, said it has C$27 billion ($19.40 billion) of secured growth projects, up from C$24 billion previously.

New investments included the $1.1 billion Sequoia Solar project in Texas and the $700 million offshore Canyon System Pipelines project on the U.S. Gulf Coast.

"Enbridge has seen increased visibility of our long-term growth supported by strong energy infrastructure fundamentals and in particular rising power demand," CEO Greg Ebel said on a conference call.

Enbridge shares were down 0.3% at C$56.08 on the Toronto Stock Exchange.

The company reported a profit of C$1.29 billion for the quarter ended Sept. 30, compared with C$532 million a year earlier.

Its adjusted profit of 55 Canadian cents per share missed analysts' estimate by one Canadian cent, according to data compiled by LSEG, partly because of higher financing costs related to the U.S. gas acquisitions.

Enbridge had closed a $14 billion acquisition, including debt, of three Dominion Energy utilities — East Ohio Gas, Questar Gas and Public Service Co of North Carolina — by the third quarter.

Enbridge's adjusted core profit from gas distribution and storage was up 92.6% at C$522 million in the quarter, helped by the acquisitions, which contributed C$217 million.

Steady oil demand also boosted the company's earnings with its Mainline system transporting 2.96 million barrels per day in the quarter. Adjusted core profit of the pipeline network rose 3.2% to C$1.35 billion, helped by higher tolls.

"In liquids, demand for the Mainline remains strong and our volumes for 2024 are expected to exceed 3 million barrels per day," Ebel said, adding Enbridge was advancing discussions with customers about new pipelines in western Canada from 2026 onwards.

© Reuters. FILE PHOTO: Storage tanks are seen at Enbridge’s terminal located outside Manhattan, Illinois, U.S., June 26, 2024. REUTERS/Nicole Jao/File Photo

Mainline is North America's largest crude oil pipeline network. It transports light and heavy crude oil, natural gas liquids and refined products from Edmonton, Alberta to various markets in Canada and the U.S. Midwest.

($1 = 1.3918 Canadian dollars) (This story has been corrected to fix the share price in paragraph 5)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.