Enbridge adjusted earnings top $5 billion in 2019

"Our low risk pipeline-utility model continued to deliver strong financial results and we advanced our strategic priorities on many fronts."

Calgary-based Enbridge reported Friday that its adjusted earnings in its fourth quarter of 2019 rose was $1.2 billion while they reached $5.3 billion for the full year.

“2019 was a successful year for Enbridge,” said Al Monaco, President and Chief Executive Officer of Enbridge, in a news release. “Our low risk pipeline-utility model continued to deliver strong financial results and we advanced our strategic priorities on many fronts.

“Each of our core businesses delivered solid results in 2019 that translated into full-year DCF 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 per cent in 2019 and 9.8 per cent in 2020.”

Monaco said the company is pleased with its performance in 2019 and the successful completion of the three-year plan it announced in early 2017 following the merger with Spectra. Looking ahead to its new three-year plan through 2022, Monaco said strategic priorities for the business remain focused on optimizing its base business, executing its secured growth program and growing the business through in-franchise, capital efficient investment.

“Adjusted earnings in the fourth quarter 2019 increased by $62 million. The increase was primarily driven by strong operating results across many of the Company’s business units and from new projects placed into service in 2019, partially offset by weaker performance in Energy Services due to the narrowing of certain location and quality differentials. On a per share basis, adjusted earnings decreased by $0.04 per share compared with the same period in 2018, reflecting the same operating factors noted above, partially offset by a higher share count which reflected common shares issued by the Company to buy-in the public interests in its sponsored vehicles during the fourth quarter of 2018,” said Enbridge.

“Adjusted earnings for the year ended 2019 increased by $773 million compared with the year ended 2018. The increase is primarily due to strong operating results across many of the Company’s business units, as well as new projects placed into service in 2019 and in late 2018. These factors were partially offset by the disposition of certain Gas Transmission and Midstream assets, which included the provincially regulated portion of the Canadian natural gas gathering and processing assets sold on October 1, 2018, as well as the disposition of Midcoast Operating, L.P., sold on August 1, 2018.”

Mario Toneguzzi is a business reporter in Calgary.

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