Pipeline operator Enbridge Inc. ENB-T reported first-quarter adjusted profit on Friday that surpassed analysts’ expectations as robust performance in its gas transmission and utility businesses offset softer results in its liquids pipelines segment.
The pipeline operator is benefiting from rising demand for natural gas, utility infrastructure and power supply for data centers, allowing it to generate steady growth despite geopolitical tensions and commodity price volatility.
The company said it added projects worth about $2-billion to its secured growth backlog during the quarter, including the Cone onshore wind project in Texas and expansions at the Tres Palacios and Dawn Hub storage facilities, as well as its Vector Pipeline system.
Its secured growth backlog now stands at about $40-billion and is expected to be funded through its annual growth capital investment capacity of $10-billion to $11-billion.
Enbridge acquired three utilities from U.S.-based Dominion Energy last year, expanding its gas distribution business.
Adjusted core profit from gas distribution and storage business rose 6.8 per cent to $1.71-billion in the reported quarter, while gas transmission earnings increased 6.6 per cent to $1.57-billion.
In its gas transmission segment, earnings benefited from stronger contracting across U.S. pipeline assets and higher revenues from the Aitken Creek and BC Pipeline systems.
The gas distribution business was supported by higher regulated rates in Ontario, Utah and North Carolina, which partly helped cushion weaker liquids pipeline results, reflecting lower Mainline contributions.
Enbridge’s Mainline system, which moves nearly half of the crude in the United States, saw quarterly adjusted core profit fall 13.2 per cent to $1.45-billion.
The Calgary, Alberta-based company posted adjusted profit of 98 cents per share for the three months ended March 31, compared with analysts’ average estimate of 94 Canadian cents, according to data compiled by LSEG.