Enbridge Inc. has reported first-quarter net income of $1.02 billion (CAD 1.4 billion), compared with $1.24 billion (CAD 1.7 billion) in the previous-year period.
The company’s adjusted earnings for the quarter were $1.46 billion (CAD 2.0 billion), or $0.67 (CAD 0.92) per common share, an increase of eight percent per share, compared with $1.24 billion (CAD 1.7 billion) or $0.62 (CAD 0.85 per common share) in the same period in 2023. The Zacks Consensus Estimate was $0.59 per share.
According to its most recent earnings release, Enbridge posted adjusted earnings before interest, income taxes and depreciation and amortization (EBITDA) of $5.0 billion, an increase of 11 percent compared with $4.5 billion in the first quarter of 2023.
Enbridge President and CEO Greg Ebel said, “We are pleased to announce a very solid start to 2024. The continued need for safe, reliable, and affordable energy drove high utilization across our footprint. Enbridge has a long history of predictable financial and operational performance, and this quarter was no different. We are executing on our strategic priorities and are on track to achieve our full-year EBITDA and DCF per share guidance”.
Ebel noted that the quarter’s record financial results were driven by strong operational performance and execution.
"In Liquids, we saw high utilization across our systems including another quarter of strong Mainline performance,” Ebel continued. “The CER [Canada Energy Regulator] approved the Mainline Tolling agreement, a true win-win-win for us, our customers, and the markets we serve. We also advanced our integrated U.S. Gulf Coast infrastructure strategy by sanctioning additional storage at our Ingleside crude export facility, and acquiring two marine docks and nearby land. These strategic investments augment our competitive position in the region and support attractive economics for our customers”.
"In Gas Transmission, we entered into a definitive agreement to acquire a meaningful, strategic interest in the Whistler Parent JV, an integrated Permian Basin natural gas pipeline and storage network connecting natural gas supply to growing LNG and other U.S. Gulf Coast demand,” he said. “Following the Tennessee Valley Authority's decision to proceed with construction of a new natural gas-fired combined cycle plant, we have progressed to FID [final investment decision] on the previously announced Tennessee Ridgeline Expansion. Finally, we sanctioned new pipelines to serve Shell and Equinor's U.S. Gulf Coast offshore Sparta development”.
On the renewables front, Ebel noted a 100 percent increase in EBITDA driven by the acquisition of additional interest in German offshore wind farms, the generation of Investment Tax Credits from Fox Squirrel, and strong European wind resources.
“In France, all 71 turbines have been installed at the Fécamp wind farm off the northern coast of France. This 497-MW [megawatt] project has begun generating electricity, powering the equivalent of more than 400,000 homes,” Ebel remarked.
According to a recent report from Bloomberg, Enbridge is offering new space on a crude pipeline running to the Texas oil port of Corpus Christi. The Canadian company is asking shippers to commit to an expansion that would add as much as 120,000 barrels a day of capacity on the 900,000-barrel-a-day Gray Oak pipeline.
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