Enbridge quarterly profit rises on strength from natural gas businesses
ENB•Enbridge's third-quarter earnings nearly doubled to C$1.29 billion, or 59 Canadian cents per share, as gas transmission adjusted core profit rose about 13% to C$1.43 billion. Profit from its liquids pipelines business fell 4.4%.
1. Gas businesses grow
Higher utility rates and stronger demand for gas infrastructure lifted Enbridge's third-quarter results. Adjusted core profit from gas transmission rose about 13% to C$1.43 billion, while profit from gas distribution and storage increased 18.8% to C$665 million.
2. Projects enter service
Enbridge placed more than C$3 billion of gas transmission projects into service during the quarter, including Aspen Point and Tennessee Ridgeline. Quarterly earnings rose to C$1.29 billion, or 59 Canadian cents per share, from C$682 million, or 30 Canadian cents per share, a year earlier, when losses on hedging contracts had weighed on profit.
3. Liquids pipelines weaken
Adjusted core profit from liquids pipelines fell 4.4%, hurt by low volumes on its Mainline and underutilized contracts serving the U.S. Gulf Coast. Enbridge delayed a 250,000-barrels-per-day Mainline expansion in July, citing insufficient producer commitments. It also agreed to acquire privately held Laramie Energy's assets for up to $550 million to expand natural gas supplies for its Utah utility business.
