Enbridge rides on utilities, gas segments strength to top estimates
The company said it sanctioned a 40 billion cubic feet expansion of the Aitken Creek gas storage facility in British Columbia, Canada to support growing west coast LNG export demand and a 160 million cubic feet per day expansion of Line 31 in the U.S. Southeast.
Pipeline operators are benefiting from an increase in demand for natural gas, primarily driven by LNG exports, as well as rising electricity demand.
"We are capitalizing on growing power demand and strong natural gas fundamentals," said CEO Greg Ebel.
Calgary-based Enbridge last year bought three Dominion Energy (D.N), opens new tab utilities — East Ohio Gas, Questar Gas and Public Service Co of North Carolina — in a $14 billion deal, including debt.
This powered a jump in adjusted core earnings to C$840 million, from C$567 million last year, in its gas distribution and storage unit.
Enbridge reported an adjusted core profit of C$1.38 billion ($995.02 million) from its gas transmission unit, up from C$1.08 billion a year earlier.
The company is also building out its renewables portfolio and said last month that it had reached a final investment decision to invest $900 million on a 600-megawatt solar power project in Texas, backed by Meta (META.O), opens new tab.
Enbridge sanctioned roughly C$2 billion in new projects during the quarter.
The company said it does not expect tariffs to have a material impact on its current operations or deployment of capital, though it will continue to monitor the developments.
Enbridge posted an adjusted profit of 65 Canadian cents per share for the quarter ended June 30, beating analysts' average expectation of 57 Canadian cents, according to data complied by LSEG.
($1 = 1.3869 Canadian dollars)
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Is this a good time to buy shares in Diageo?
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an hour ago
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