Enbridge Profit Beats Estimates as Mainline Volumes Soar
Enbridge, the Canadian pipeline operator, reported better-than-expected second-quarter adjusted profit due to higher volumes on its Mainline system. The system transports nearly half of the crude in the US and carries light and heavy crude oil, natural gas liquids, and refined products from Edmonton to various markets in Canada and the US Midwest.
The company's adjusted core profit from its gas transmission unit rose to $1.42 billion, up from $1.38 billion a year earlier. This increase was mainly driven by higher revenues from the East Tennessee rate case settlement and a previously approved rate hike on Texas Eastern.
Enbridge added over $1 billion in projects to its secured growth backlog this quarter with the sanctioning of the Line 5 Relocation project in Wisconsin, bringing the total backlog to about $41 billion. The company expects this project to cost US$1 billion and enter service in early 2027.