Enbridge 3Q Profit Rises on Derivative Gains

Dow Jones11-06 20:48

Enbridge reported higher third-quarter profit, supported by steady distributable cash flow growth and noncash gains on financial hedging contracts.

The energy-infrastructure company posted on Friday a rise in net income to 1.29 billion Canadian dollars (US$920.1 million), or C$0.59 a share, up from C$682 million, or C$0.30 a share, in the comparable quarter a year earlier.

Enbridge noted that the increase was largely due to noncash, unrealized gains in the fair value of derivative instruments used to hedge foreign exchange, interest rates and commodity prices.

Adjusted earnings, which exclude one-off items and exceptional costs, totaled C$0.49 a share, coming in above the C$0.48 a share expected by analysts, according to a poll on FactSet.

Distributable cash flow, a key metric that tracks cash available to pay dividends, rose to C$2.69 billion from C$2.57 billion last year.

Enbridge reiterated its 2026 targets for adjusted earnings before interest, taxes, depreciation and amortization of between C$20.2 billion and C$20.8 billion, with distributable cash flow per share expected at between C$5.70 and C$6.10.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment