Enbridge Canada misses its third-quarter profit forecast due to higher capital costs

Enbridge missed its third-quarter profit estimate on Friday due to higher financing costs resulting from capital investments, including U.S. Gas Utility acquisitions. This sent the company's shares down by nearly 2% during premarket trading.

Last year, the Calgary-based pipeline company acquired three Dominion Energy utilities -- East Ohio Gas (formerly Questar Gas), Public Service Co. of North Carolina, and Public Service Co. of North Carolina – in a deal worth $14 billion, including debt.

It reported a core adjusted profit of C$2.31 ($1.65 billion), down from C$2.34 a year ago, due to lower contributions by the Flanagan and Spearhead Pipelines.

Due to lower toll prices, the company's Mainline System, which is North America's largest pipeline system, saw its adjusted core profit for the third quarter fall marginally to C$1.34billion.

The system can move up to 3 million barrels of crude oil per day from Western Canada into markets in Eastern Canada, the U.S. Midwest and Eastern Canada.

Enbridge approved roughly C$3 Billion in new projects over the course of the quarter, and its backlog has now grown to about C$35 Billion.

It confirmed that its core adjusted profit for 2025 will be between C$19.4 and C$20.0 Billion.

The company stated that it does not expect tariffs will have a significant impact on current operations or capital deployment, but will continue to monitor the trade developments.

Enbridge's adjusted profit was 46 Canadian cents for the quarter that ended on September 30. This is below analysts' expectations of 51 Canadian dollars per share. Data compiled by LSEG. (1 Canadian dollar = 1.4024 dollars) (Reporting and editing by Pooja Deai in Bengaluru)

(source: Reuters)