Friday, 21 February 2025
Home Topics Business Enbridge’s Q3 profit more than doubles on acquisition contributions
BusinessNatural GasNewsOil

Enbridge’s Q3 profit more than doubles on acquisition contributions

68
FILE PHOTO: Storage tanks are seen at Enbridge’s terminal located outside Manhattan, Illinois, U.S., June 26, 2024. REUTERS/Nicole Jao/File Photo
Storage tanks are seen at Enbridge’s terminal located outside Manhattan, Illinois, U.S., June 26, 2024. — REUTERS/Nicole Jao/File Photo

By Tanay Dhumal and Nia Williams

(Reuters) – Enbridge’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.

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)

(Reporting by Tanay Dhumal in Bengaluru and Nia Williams in British Columbia; Editing by Shilpi Majumdar and David Gregorio)

Related Articles

First Minister John Swinney was shown a hydrogen gas cooker during the visit (Jane Barlow/PA)
ClimateHydrogen

Swinney: Hydrogen-powered home is ‘exciting’ development in climate change fight

John Swinney says the opening of the first hydrogen-powered homes at a...

FILE PHOTO: People walk past an installation depicting barrel of oil with the logo of Organization of the Petroleum Exporting Countries (OPEC) during the COP29 United Nations climate change conference in Baku, Azerbaijan November 19, 2024. REUTERS/Maxim Shemetov/File Photo
BusinessOilPoliticsTrade

OPEC+ likely to stick to oil output hike plan, sources say

By Maha El Dahan, Ahmad Ghaddar and Olesya Astakhova LONDON (Reuters) -OPEC+...

FILE - People walk amid an oil spill in the Niger Delta in village of Ogboinbiri, Nigeria, Dec. 11, 2024. (AP Photo/Sunday Alamba, File)
BusinessEconomyOilPolitics

Nigeria moves to restart oil production in vulnerable region after Shell sells much of its business

ABUJA, Nigeria (AP) — The Nigerian government is in talks with local...

FILE PHOTO: Republican presidential nominee and former U.S. President Donald Trump makes a campaign stop at manufacturer FALK Production in Walker, Michigan, U.S. September 27, 2024.  REUTERS/Brian Snyder/File Photo
BusinessEconomyIndustryInfrastructurePoliticsTrade

US metal buyers likely to turn to Mideast, Chile as tariffs bite

By Melanie Burton MELBOURNE (Reuters) -U.S. companies will look to the Middle...

Login into your Account

Please login to like, dislike or bookmark this article.