Enbridge 4Q Profits Shy of Analysts' Estimates
Canada-based Enbridge Inc. recently posted 4Q profit numbers that missed analysts’ expectations. The miss was—as it has been with many oil and gas companies this earnings season—due to higher operating costs eating into the company’s earnings.
The company reported a 5.3 percent rise in adjusted earnings to $1.23 billion.
“2019 was a successful year for Enbridge,” Al Monaco, President and CEO, said in a written statement.
"Each of our core businesses delivered solid results in 2019 that translated into full-year discounted cash flow per share at the top-end of our guidance range. The Liquids Mainline System achieved record annual throughput, our gas pipelines were highly utilized, and we're capturing synergies through the amalgamation of our Ontario Utility businesses. In addition to strong business performance, we placed a further $9 billion of new projects into service, including the Canadian segment of the Line 3 Replacement. Our focus on optimizing our base business and executing on our secured growth program continues to drive highly predictable and growing cash flows, which resulted in exceptional annual dividend growth for our shareholders of 10 percent in 2019 and 9.8 percent in 2020.”
While the company moved 2.728 million bpd of oil on its Mainline system in 4Q 2019 (up from 2.685 million bpd YOY), adjusted core earnings from the system dipped 3.7 percent.
In its gas transmission and midstream units, adjusted earnings decreased $4 million thanks to low gas prices and costs tied to the Texas Eastern natural gas pipeline blast in Kentucky in August.
"Despite strong utilization and financial performance across our businesses, we experienced a major incident on our natural gas system in Kentucky,” Monaco said. “The safety of our systems is always our number one priority and we're re-doubling our efforts to ensure our pipelines continue to be the safest in the industry.”
Monaco added that overall, management was pleased with company performance in 2019 and the successful completion of the three-year plan it announced in early 2017 following the Spectra merger.
“As we look ahead to our new three-year plan through 2022, our strategic priorities for the business remain focused on optimizing our base business, executing our secured growth program and growing the business through in-franchise, capital efficient investment,” Monaco said. “The combination of our strong financial position, disciplined capital allocation, and low-risk business model, positions us well to sustain attractive shareholder returns well into the future."
In a separate statement, the company shared that it recently appointed Gregory J. Goff as a director. He has more than 30 years of energy industry experience, most recently as Executive Vice Chairman of Marathon Petroleum Corp. Prior, he was President and CEO of Andeavor until October 2018.
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