Enbridge’s Q3 profit more than doubles on acquisition contributions
10:59 am Friday, November 01st, 2024
(Reuters) -Enbridge posted a more than twofold jump in its third-quarter profit on Friday, as it benefited from incremental contributions from U.S. gas acquisitions, but narrowly missed estimates on higher financing costs related to the deals.
The Canadian pipeline operator 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.
The deal, which made Enbridge the largest gas utility by volume in North America, had sparked investor concerns over its debt load on already-leveraged balance sheet.
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,” said CEO Greg Ebel.
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.
The company reported a profit of C$1.29 billion ($925.99 million) for the quarter ended Sept. 30, compared with C$532 million a year earlier.
Its adjusted profit of 55 Canadian cents per share, however, missed analysts’ estimate by one Canadian cent, according to data compiled by LSEG.
($1 = 1.3931 Canadian dollars)
(Reporting by Tanay Dhumal in Bengaluru; Editing by Shilpi Majumdar)
