Enbridge earnings: another strong quarter for blue-chip equities


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This morning before the market opens, Enbridge (TSX: ENB) (NYSE: ENB), the Canadian energy giant, announced its third quarter results for 2021. Energy is one of the hottest industries right now, as the world is recovering from the pandemic. And with several Canadian energy stocks already posting spectacular numbers this quarter, investors were eagerly awaiting Enbridge’s progress.

What happened to Enbridge’s third quarter report?

As expected, the overall figure is a 23% increase in Enbridge profits thanks to both higher prices and a recovery in volumes. Enbridge shares transported 2.6 million barrels per day (b / d) on its Mainline, up 4.6% from the same quarter last year.

Enbridge reported adjusted earnings of $ 1.2 billion, up from $ 961 million in the same quarter last year. On a per share basis, Enbridge increased its EPS from $ 0.48 last year to $ 0.59 this year.

In addition to net income, Enbridge also released other very impressive figures. Its adjusted EBITDA reached $ 3.3 billion in the quarter, up from $ 3 billion in the same period last year. Its distributable cash flow per share also increased to $ 1.13 from $ 1.03 a year ago.

In addition to these impressive numbers, Enbridge shares also briefed investors on some key developments this quarter.

With the replacement of Enbridge’s Line 3 now in service and the company’s acquisition of a major North American crude export facility located in Texas, which significantly advanced its export strategy to the coast Gulf of United States, the stock is performing well.

In addition, he also indicated that the construction of his three offshore wind projects in France is progressing as planned and is expected to combine for 1.4 gigawatts of green power generation capacity. And in keeping with green energy, the energy giant also recently announced a partnership with Vanguard Renewables to build eight renewable natural gas facilities along Enbridge’s massive gas transmission system in the United States. United.

So what?

Investors and analysts weren’t expecting a major recovery from Enbridge, in large part because the stock has such a resilient business model and wasn’t so badly affected by the pandemic in the first place. Nevertheless, these results are impressive and show that the company is progressing well and is looking to the future with its many growth plans.

It is also positive that Enbridge has reaffirmed its guidance for 2021. Enbridge expects to achieve EBITDA between $ 13.9 billion and $ 14.3 billion. Additionally, she expects to earn distributable cash flow per share between $ 4.70 and $ 5.00.

So overall it was another impressive quarter for blue chip stocks. And while these strong earnings are not surprising, they are a reminder of how high quality Enbridge is for long-term investors.

Now what?

Since the start of the year, Enbridge has already provided investors with a total return of over 35%. That’s a considerable amount for a company with a market capitalization north of $ 100 billion. However, after reporting a 23% increase in earnings and several high potential growth initiatives, Enbridge shares continue to look like one of the best investments you can buy in the long term.

The dividend aristocrat has now increased his payout every year for over a quarter of a century. In addition, the stock is returning an impressive 6.4% today.

So if you are looking for high quality stocks that you can be sure you own for the long haul, Enbridge is one of the best in Canada.

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