Enbridge Earnings. Another Solid Quarter From Blue-Chip Stock


Gas pipelines

This morning before the market opened, Enbridge (TSX:ENB)(NYSE:ENB), the massive Canadian energy giant, reported its third-quarter earnings for 2021. Energy is one of the hottest industries at the moment, as the world recovers from the pandemic. And with several Canadian energy stocks already posting blowout numbers this quarter, investors have been eagerly waiting to get a look at Enbridge’s progress.

What happened with Enbridge stock’s third-quarter report?

As expected, the headline number is a 23% surge in profit for Enbridge thanks to both higher prices and a recovery in volumes as well. Enbridge stock transported 2.6 million barrels per day (bpd) on its mainline system, which increased 4.6% from the same quarter last year.

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

In addition to net income, Enbridge also reported some other highly impressive numbers. Its adjusted EBITDA grew to $3.3 billion in the quarter, up from $3 billion in the same period last year. Its distributable cash flow per share also increased, coming in at $1.13, up from $1.03 a year ago.

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

With Enbridge’s Line 3 replacement now in service, and after the company acquired a leading north American crude export facility located in Texas, which significantly advanced its U.S. Gulf Coast export strategy, the stock has a bright road ahead.

In addition, it also reported that the construction of its three offshore wind projects in France are progressing on schedule and should combine for 1.4 gigawatts of green energy-generating capacity. And in keeping with green energy, the massive 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 U.S.

So what?

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

It’s also positive that Enbridge reaffirmed its guidance for 2021. Enbridge expects to earn EBITDA between $13.9 billion and $14.3 billion. Furthermore, it expects to earn distributable cash flow per share between $4.70 and $5.00.

So, overall, it was another impressive quarter for the blue-chip stock. And while these strong earnings aren’t surprising, they remind us what a high-quality stock Enbridge is for long-term investors.

Now what?

Year to date, Enbridge has already earned investors a total return north of 35%. That’s a considerable amount for a company with a market cap north of $100 billion. However, after reporting a 23% increase in profit and several high-potential growth initiatives, Enbridge stock continues to look like one of the best investments you can buy for the long haul.

The Dividend Aristocrat has now raised its payout every year for over a quarter-century. Plus, the stock yields an impressive 6.4% today.

So, if you’re looking for a high-quality stock that you can be confident owning long term, Enbridge is one of the best in Canada.

The post Enbridge Earnings: Another Solid Quarter From the Blue-Chip Stock appeared first on The Motley Fool Canada.

Buy Alert: The Shopify of Cryptocurrency

We recommended Shopify before everyone knew about it… and now it’s up roughly 5,000% and while making some investors a fortune in the process.

Now, The Motley Fool is issuing a buy alert on another controversial investment with mouth-watering potential: cryptocurrency. But not just any cryptocurrency… one specific coin that we think could rise above the rest.

This is the first cryptocurrency The Motley Fool has ever recommended, so you probably don’t want to miss out.

Click here to get all the details!

More reading

Dividend Investors: Should You Buy Enbridge Stock or TC Energy Stock Now? 2 Top TSX Stocks for New Investors $15 a Day in Passive Income: 1 Stock That Can Get You There Collect $1,280/Year Passive Income With This Stock 4 Insanely Cheap Dividend Stocks on the TSX Right Now

Fool contributor Daniel Da Costa owns shares of ENBRIDGE INC. The Motley Fool recommends Enbridge.

https://www.fool.ca/2021/11/05/enbridge-earnings-another-solid-quarter-from-the-blue-chip-stock/

Comments

Post a Comment

Popular posts from this blog

Get Rich With These High-Yield Canadian Dividend Stocks

Image
Dividend stocks are one of the smartest ways to create wealth in the long term. By investing in dividend-paying stocks, one can generate returns in two ways: dividends and capital appreciation. As top dividend-paying companies generally have well-established businesses and a growing earnings base, they generate steady capital gains in the long term. Further, the reinvestment of dividends allows investors to accumulate more shares and create wealth in the long term.  With this background, let’s zoom in on three high-yield Canadian stocks that can help you get rich over time.  Enbridge  Enbridge (TSX:ENB) is a must-have dividend stock, and there are solid reasons behind that. Besides offering a lucrative yield of 6.7% (based on its closing price of $53.14 on May 10), the company has a resilient business that consistently delivers steady growth.  Enbridge owns extensive midstream assets and transports oil and gas. In addition, Enbridge has interests in renewable energy faci...
Read more

How much dividend income can you earn?

Image
Passive income. It’s one of the most common financial goals for Canadian investors. Everybody likes making money on a stock trade, but what could be better than a stock that pays you income year in and year out? Such are the kinds of stocks that Warren Buffett and other long-term investors made their fortunes on. This raises a question: Is it possible to make a truly substantial amount of money – let’s say $1,000 per month – with just dividend stocks? Such a thing would be very helpful if it could be done. Consider that, $1,000 per month is more than what the average Canadian gets from the Canada Pension Plan (CPP). If you take the average CPP payment ($811) and add $1,000 per month in dividend income to it, you get to a sum of money that could potentially pay all of your bills. In this article, I will explore the topic of making money with dividend stocks. I will show how much money you’d need to invest to get $1,000 a month in dividend income. I will reveal a stock that...
Read more

RRSP Wealth - Two Top TSX Dividend Securities to Buy Now or Own for 25 Year

Image
The market pullback is giving Registered Retirement Savings Plan (RRSP) investors a chance to buy top Canadian dividend stocks at undervalued prices for a self-directed portfolio focused on long-term total returns. TC Energy TC Energy (TSX:TRP)(NYSE:TRP) has raised its dividend in each of the past 22 years, and investors should see the distribution continue to grow at a steady pace. The energy infrastructure giant operates natural gas pipelines, oil pipelines, and power-generation facilities in Canada, the United States, and Mexico. The $28 billion capital program is largely focused on expanding the natural gas pipeline business, which already boasts 93,000 km of infrastructure. TC Energy has assets that connect the Marcellus and Utica shale plays in the United States to the Gulf Coast, where liquified natural gas (LNG) facilities cool the gas to the point where it becomes liquid and can be shipped to international buyers. In Canada, TC Energy is building the Coastal GasLink pi...
Read more