Enbridge Q3: Earnings Decline On Ongoing Market Volatility, Reaffirms FY23 Outlook

Enbridge Inc ENB reported Q3 FY23 adjusted EPS of C$0.62, lower than C$0.67 a year ago.

In USD terms, EPS of $0.46 beat the consensus of $0.44, and sales of $7.34 billion missed the consensus of $8.25 billion.

Adjusted EBITDA rose 3% Y/Y to C$3.9 billion, led by contributions from a higher stake in the Gray Oak Pipeline and the Cactus II Pipeline in H1 2022 and early 2023, higher volumes on the Mainline, the Gray Oak Pipeline and at EIEC.

Liquids Pipelines adjusted EBITDA increased to C$2.33 billion from C$2.27 billion a year ago on record utilization across the system, including the Mainline.

Gas Transmission and Midstream adjusted EBITDA decreased to C$1.09 billion from C$1.16 billion the prior year.

Gas Distribution And Storage adjusted EBITDA fell to C$271 million from C$293 million a year ago. Renewable Power Generation adjusted EBITDA stood at C$119 million vs. C$113 the prior year.

Distributable cash flow stood at C$2.57 billion vs. C$2.50 billion in the prior year.

Cash flow from operating activities increased to C$3.1 billion from C$2.1 billion in the prior year.

In Q3, ENB inked a deal with Dominion Energy Inc D to acquire The East Ohio Gas Company, Questar Gas Company and its related Wexpro companies, and Public Service Company of North Carolina, Incorporated for $14 billion (C$19 billion).

Also, ENB penned an agreement to acquire seven operating landfill-to-renewable natural gas (RNG) assets located in Texas and Arkansas for $1.2 billion.

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.

Price Action: ENB shares are trading higher by 1.46% at $34.00 on the last check Friday.