Enbridge raises quarterly profit and keeps its annual forecast
Canada’s Enbridge reported higher third-quarter profit and maintained its annual financial guidance. Adjusted earnings also increased, while cash from operating activities declined. The energy infrastructure company attributed much of the net earnings gain to noncash changes in derivatives used to manage risks. Two gas transmission expansions entered service during the quarter, with a secured growth backlog of approximately 38 billion Canadian dollars remaining.
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Quarterly profit climbs
Canadian energy infrastructure company Enbridge reported a rise in third-quarter profit. Its natural gas businesses supported the quarterly performance.[1], [2]
Earnings attributable to common shareholders reached 1.288 billion Canadian dollars, compared with 682 million Canadian dollars a year earlier. Earnings per share rose from 0.30 to 0.59 Canadian dollars. Enbridge attributed much of the increase to unrealised, noncash changes in derivatives used to manage currency, interest-rate and commodity risks, alongside operating performance.[1]
Adjusted earnings and operating cash diverge
Adjusted earnings rose from 997 million Canadian dollars to 1.074 billion Canadian dollars. Adjusted earnings before interest, taxes, depreciation and amortisation increased from 4.267 billion to 4.434 billion Canadian dollars. Gas transmission rate settlements and distribution tariffs contributed, partly offset by lower volumes and tolls in parts of the liquids pipeline business.[1]
Operating cash flow declined from 2.868 billion to 2.703 billion Canadian dollars. The separate adjusted distributable cash flow measure increased from 2.566 billion to 2.689 billion Canadian dollars.[1]
Annual guidance remains in place
Enbridge retained annual guidance of 20.2–20.8 billion Canadian dollars for adjusted earnings before interest, taxes, depreciation and amortisation. Its secured growth backlog totalled approximately 38 billion Canadian dollars. The Aspen Point and Tennessee Ridgeline gas transmission expansions entered service during the quarter and were removed from that backlog. Management valued the completed projects at approximately 3 billion Canadian dollars.[1]
