Enbridge Posts Higher Q2 EPS, Reaffirms 2023 And Medium-Term Guidance

Enbridge Inc ENB reported second-quarter (Q2) 2023 adjusted EPS of C$0.68, higher than C$0.67 a year ago.

In USD terms, EPS of $0.51 was in line with the consensus.

Adjusted EBITDA rose 8% Y/Y to C$4.0 billion, led by contributions from a higher stake in the Gray Oak Pipeline and the Cactus II Pipeline in H1 2022 and early 2023, increased ex-Gretna volumes on the Mainline and the recognition of a lower provision against the interim Mainline IJT.

Distributable cash flow stood at C$2.8 billion vs. C$2.7 billion in the prior year.

Cash flow from operating activities increased to C$3.4 billion from C$2.5 billion in the prior year.

In Q2, Enbridge repurchased and cancelled common shares of around 2.5 million, equating to about C$125 million as part of its 2023 NCIB program. 

Gregory L. Ebel, CEO said: "We are pleased Rio Grande LNG reached FID and look forward to starting construction on our Rio Bravo pipeline project after obtaining necessary regulatory approvals. In Gas Distribution, we are expecting another strong year of customer growth and have negotiated a partial settlement on our rebasing application. Construction of our French offshore wind projects are ongoing with the first turbines installed at Fécamp. We have more than 4.5GW of onshore renewable projects under development and anticipate reaching FID on certain projects by year-end."

2023 Outlook Reiterated: ENB expects adjusted EBITDA of C$15.9 billion-C$16.5 billion and DCF per share of C$5.25-C$5.65.

"Looking forward, financial discipline, execution of our secured capital program, and deployment of our discretionary investment capacity gives us confidence that we'll generate 4-6% EBITDA growth per year through 2025 and approximately 5% thereafter," Ebel added.

Also Read: Enbridge Picks Patrick Murray As New CFO

Price Action: ENB shares are trading higher by 0.77% at $36.27 premarket on the last check Friday.