Enbridge raises core profit forecast on boost from new acquisitions
Aug 2 (Reuters) - Pipeline operator Enbridge raised its full-year profit forecast on Friday, as it benefits from its newly acquired assets and projects.
Enbridge has closed several deals so far this year, including a $4.3 billion deal to buy U.S. utility Questar Gas Company and Wexpro from Dominion Energy Quester supplies gas in Utah, Southern Wyoming and Southeastern Idaho to about 1.2 million customers.
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The company also sanctioned an expansion of its Gray Oak pipeline by 120 thousands of barrels per day (kbpd) in the Permian basin, and said the integration of Enbridge Gas Ohio and Enbridge Gas Utah was well underway.
Enbridge raised its expectation for full-year adjusted core profit between C$17.7 billion and C$18.3 billion, from its previous range of C$16.6 billion to C$17.2 billion.
It, however, reported a lower-than-expected profit in the second quarter ended June 30, partly hurt by weaker income from its Canadian gas transmission segment and higher interest rates that hiked borrowing costs and hurt demand.
Quarterly adjusted core profit from Enbridge's Canadian Gas Transmission segment was down 30% to C$98 million from a year earlier, while adjusted core profit from its Mainline System fell 9.3% to C$1.32 billion in the quarter.
In contrast, peer TC Energy, which is in the process of spinning off its oil business, reported a profit beat on Thursday, helped by higher volumes of natural gas transported through its system and said it expects the AI boom to further fuel demand.
Enbridge reported an adjusted profit of 58 Canadian cents per share, compared with analysts' average estimate of 64 Canadian cents, according to LSEG data.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Shinjini Ganguli)