Enbridge beats earnings estimates as oil volumes rebound

The performance reflects a steady recovery in Canada’s oil and gas industry as rising oil prices encourage companies to restore production they shut down earlier in the pandemic

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Canadian pipeline operator Enbridge Inc on Friday reported better-than-expected second-quarter profit on Friday as volumes of oil moved on its Mainline rose from a year ago due to a rebound in the fuel demand.

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The company had warned that scheduled maintenance for upgrader and oil sands refineries would be more concentrated between April and June than expected.

For the full year, Enbridge plans to transport 2.8 million bpd on average.

The Calgary-based company said it has entered into an agreement with tech company Svante Inc and other companies to explore carbon capture opportunities.

Enbridge is in talks with oil sands producers and other heavy industries about possible involvement, but needs clarification from the Canadian government on the tax credit it is developing, said executive vice president of Liquid Pipelines Vern Yu on a call with analysts.

Enbridge expects EBITDA and Distributable Cash Flow for the full year 2021 to remain within the previously provided outlook of $ 13.9 billion and $ 14.3 billion and $ 4.70 billion, respectively. $ 5.00 per share.

Enbridge reported adjusted earnings of C $ 1.36 billion, or 67 cents Cdn per share, in the second quarter. This exceeds the average analyst estimate of 57 cents Canadian, according to Refinitiv IBES.

Rival company TC Energy also beat quarterly profit estimates on Thursday, as demand for its transportation services returned as fuel prices rebound.

© Thomson Reuters 2021

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