Enbridge Q4 Profits Show Success From Pipeline Tolls, Utilities Expansion
(Reuters) - Pipeline operator Enbridge saw higher tolls on its pipelines and a doubling of income from its utilities segment, helping the company report a rise in its adjusted core profit for the fourth quarter on Friday.
It acquired three utilities from U.S.-based Dominion Energy D.N last year, expanding its gas distribution business. This led to core profit doubling to C$1.02 billion ($719.48 million) for the segment.
"This is where our competitive advantage really kicks in... we have the supply chain capabilities, we don't take big speculative risks on offshore leases, all of our power is fully contracted," company executives said about their power segment on a conference call, adding that each of the utilities was serving power demand to data centers.
Meanwhile, Enbridge's Mainline system, which moves nearly half of the crude in the United States, saw adjusted core profit rise 3% on higher toll pricing which offset a drop in volumes.
Enbridge also doesn't see its financial guidance being materially impacted by impending tariffs from U.S. President Donald Trump's proposed tariffs, which include a 10% duty on energy imports from Canada, and brings about an uncertain environment for the country's energy sector.
"We're really focused more on broader trends, like production, demand growth, earnings, returns on capital, than day-to-day political gyrations, but that said, we're not blind to the trade discussions and disputes," executives said.
Enbridge's natural gas transmission segment also saw a 17% rise in core profit, partly due to favorable contracting and lower operating costs on its U.S. assets.
Related News
Related News
- Trump Puts Keystone XL Pipeline Back in Discussion, Though Revival Faces Developer Resistance
- Army Corps Lists Enbridge’s Line 5 as ‘Emergency’ Project Eligible to Bypass Environmental Review
- Missouri Loses Control Over 1.5 Million-Mile Gas Pipeline Network as Feds Step In
- Energy Transfer Wins New York Court Ruling in $150 Million Pipeline Fraud Case
- $3 Billion Natural Gas Pipeline Expansion to Add 1.3 Bcf Capacity in Southeast Region
- Kinder Morgan Approves $1.4 Billion Mississippi Crossing Project to Boost Southeast Gas Supply
- Army Corps Lists Enbridge’s Line 5 as ‘Emergency’ Project Eligible to Bypass Environmental Review
- India’s GAIL Eyes U.S. LNG Deals Following Trump’s Policy Shift
- TC Energy Beats Q4 Profit Estimates, Driven by Mexico Pipelines' Success
- Michigan Court Backs Permits for Enbridge’s Line 5 Pipeline Tunnel Project
Comments