Enbridge Mainline Volumes Fall, Company Posts Quarterly Loss
(Reuters) — Canadian pipeline operator Enbridge Inc on Thursday reported a loss for the first quarter compared with a profit a year earlier, hit by nearly C$4 billion in charges related to its investment in DCP Midstream and derivative losses.
Alberta-based Enbridge said the COVID-19 pandemic and resulting decline in demand for fuel pressured its Mainline system. Throughput on the pipeline system, which can ship 3 million barrels per day (bpd) of crude from Alberta to the United States, was down about 400,000 bpd in April.
It is likely to drop by an average of 400,000 to 600,000 bpd in the second quarter, as Western Canadian producers cut 1 million to 1.5 million bpd of output, Chief Executive Al Monaco said.
Despite the drop, Enbridge's volumes are underpinned by refinery demand for heavy oil, the main crude produced in Western Canada, which is holding up better than light oil, he said.
A recent plunge in global crude prices due to lost demand caused by the pandemic has battered Canada, the world's fourth-largest crude producer.
Enbridge has deferred C$1 billion in capital spending and cut costs by C$300 million, including salary cuts and retirements, Monaco said.
Enbridge announced C$400 million worth of asset sales, including two North America electricity and gas lines and an interest in French offshore wind projects.
The company's shares rose 5% in Toronto, as oil prices jumped.
Net loss attributable to common shareholders was C$1.43 billion ($1.02 billion), or 71 Canadian cents per share, in the first quarter, compared with a profit of C$1.89 billion, or 94 Canadian cents per share a year earlier.
On an adjusted per share basis, the company, however, earned 83 Canadian cents, while analysts, on average, had expected a profit of 74 Canadian cents, according to IBES data from Refinitiv.
Related News
Related News
- Williams' $1 Billion Gas Pipeline Blocked by U.S. Appeals Court, Derailing Five-State Project
- Texas Waha Hub Gas Prices Plunge to Record Lows, Hit Negative Territory
- Williams Begins Louisiana Pipeline Construction Despite Ongoing Legal Dispute with Energy Transfer
- U.S. Buys Nearly 5 Million Barrels of Oil for Emergency Stockpile
- U.S. Appeals Court Strikes Down Controversial Biden Pipeline Safety Rules
- Report: Houston Region Poised to Become a Global Clean Hydrogen Hub
- Exxon Mobil to Start Gas Reserve Seismic Surveys in Greece
- LaPorte, Texas, Issues Shelter in Place After Altivia Plant Leaks Toxic Gas
- Texas Startup Endeavors Again to Build First Major U.S. Oil Refinery Since 1977
- Second Gas Pipeline Rupture in Texas’ Reeves County Raises Environmental Concerns
Comments