Canada’s Enbridge Shows Slight Q3 Profit Boost

Canada’s Enbridge, which develops and operates several natural gas and liquids pipelines in North America and has renewable energy projects underway globally, said November 6 its Q3 2020 net earnings rose slightly, to C$990mn (US$759mn) from C$949mn in the same period last year.

Adjusted earnings, however, slipped to $961mn from C$1.12bn, while pre-tax earnings (Ebitda) fell to just under C$3bn from C$3.1bn. And cash from operations fell to C$2.3bn from $2.74bn.

“We are pleased with our third quarter results, which reflected the resilience of our business and predictability of our cash flows,” CEO Al Monaco said. “While we are encouraged by the economic activity and recovery in energy demand, we are assuming a gradual pace of recovery over the balance of 2020 and into 2021.”

All of Enbridge’s core businesses – gas transmission, gas distribution and storage and renewable power – reported strong utilisation levels, Monaco said, noting that the “vast majority” of work on its Texas Eastern Line 10 in Kentucky, which exploded in May, has been completed and the system has returned to normal eastbound service “in time for the winter heating season.”

Southbound service should be fully restored within the next month, Enbridge said.

The company is continuing to advance the development of about C$11bn worth of secured growth projects, with about C$5bn of that total to be spent through 2022. And it has directed about C$200mn of growth capital to its London Line replacement project in Ontario, which will replace two parallel gas pipelines connecting the Dawn storage and trading hub to residential and commercial markets in southern Ontario that have reached the end of their useful lives.