Enbridge to sell stake in gas distribution company
Canadian pipeline company Enbridge announced June 7 it was selling its stake in gas distributor Noverco to help pay down debt.
Enbridge said a subsidiary had reached an agreement to sell its 38.9% stake in Noverco to majority owner Trencap for US$1.14bn in cash.
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“Closing of the transaction is expected to occur by early 2022 and is subject to the receipt of regulatory approvals and customary closing conditions,” Enbridge explained. “Sale proceeds will initially be used to repay short-term debt, and on this conservative basis the transaction is expected to be neutral to distributable cash flow per share.”
Noverco is the indirect owner of Energir, a Quebec-based company that distributes mostly gas to the provincial market and the US state of Vermont.
Enbridge in May said that it had reversed losses from 2020 with GAAP earnings of US$1.6bn in Q1 2021.
Adjusted earnings slipped to US$1.3bn from US$1.4bn, while adjusted EBITDA slipped to US$3.1bn from US$3.12bn. Distributable cash flow increased slightly, to US$2.3bn from US$2.2bn.