(Oil Price) – Canada’s pipeline giant Enbridge Inc. expects its core profit to be higher in 2025 compared to 2024 levels, thanks to the expected strong utilization of its assets and the contribution of recently acquired U.S. natural gas assets.
Enbridge on Tuesday announced its first guidance for the core profit – or adjusted earnings before interest, income taxes, and depreciation (EBITDA) – for 2025.
The guidance of adjusted EBITDA of US$13.8 billion to US$14.2 billion (C$19.4 billion to C$20.0 billion) is 17% higher than the original guidance for 2024.
The 2025 adjusted EBITDA guidance “represents a 9% increase from the midpoint of our 2024 recast guidance and is 17% higher than our original 2024 guidance, driven by a full year of contributions from our U.S. gas utilities acquisitions, the roughly $5 billion of secured projects we’re on track to place into service in 2024 and continued strong expected utilization of our assets,” Enbridge’s president and CEO, Greg Ebel, said in a statement.
Enbridge also expects to raise its common share dividend by 3% next year, which would mark the 30th consecutive annual increase.
Last month, Enbridge said that its third-quarter profit more than doubled from a year earlier, thanks to higher tolls on the Mainline pipeline system, higher contributions from U.S. Gulf Coast natural gas storage assets, and contributions from recently acquired utilities in the U.S.
Enbridge, which operates the Mainline system moving over 3 million barrels a day of crude oil and liquids from Western Canada to the demand markets in the United States, struck a deal to buy three natural gas utilities in the United States from Dominion Energy, for a total consideration of $14 billion.
Last month, another Canada-based pipeline operator, TC Energy Corporation, said it expects to book a higher core profit in 2025 compared to 2024 amid increased demand for natural gas and electricity in North America.
By Charles Kennedy for Oilprice.com
