10 May

Enbridge’s Earnings Rose 19%, Beat Estimates

WRITTEN BY Rekha Khandelwal, CFA

Enbridge’s first-quarter results

On May 10, Enbridge (ENB) reported its first-quarter results before the markets opened. The company reported adjusted earnings of 1,640 million Canadian dollars—19% higher than its earnings in the first quarter of 2018. For the first quarter, Enbridge’s adjusted EPS was 0.81 Canadian dollars per share. The adjusted EPS fell YoY (year-over-year) from 0.82 Canadian dollars in the first quarter of 2018. The fall in the EPS despite a rise in the total earnings is due to the higher number of Enbridge’s outstanding shares at the end of the first quarter—compared to the first quarter of 2018.

Enbridge’s Earnings Rose 19%, Beat Estimates

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Enbridge’s outstanding shares rose due to its acquisition of Enbridge Income Fund Holdings, Enbridge Energy Partners, Enbridge Energy Management, and Spectra Energy Partners in the fourth quarter of 2018. Enbridge’s earnings growth in the first quarter was driven by higher earnings from its liquids pipelines and energy services businesses. Enbridge’s DCF (distributable cash flow) rose to 2,758 million Canadian dollars—compared to 2,312 million Canadian dollars in the first quarter of 2018.

2019 DCF guidance

Enbridge reaffirmed its DCF guidance for 2019 of 4.3 Canadian dollars per share to 4.6 Canadian dollars per share. “This strong operating performance, in combination with new projects that came into service this past year, drove record EBITDA in the first quarter, although the Line 3 in-service delay to 2020, relative to our full year 2019 budget, will offset this first quarter strength,” noted Al Monaco, Enbridge’s president and CEO. Enbridge’s Line 3 Replacement project got delayed by roughly a year to the second half of 2020 due to delayed permits.

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