Enbridge Posts Higher Q4 Profit

Enbridge (TSE: ENB) (NYSE: ENB), North America’s largest energy infrastructure company, reported a higher profit in the fourth quarter of 2021, as a recovery in fuel demand boosted the Canadian pipeline operator’s transportation volumes.

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The pipeline company reported a profit of C$1.84 billion (C$0.91 per share) in the fourth quarter, up 3.7% from C$1.78 billion (C$0.88 per share) a year ago.

On an adjusted basis, Enbridge earned C$1.38 billion (C$0.68 per share) in Q4 2021, up from an adjusted profit of C$1.13 billion (C$0.56 per share) in Q4 2020. It missed the average analyst estimate of C$0.76.

Enbridge said it moved 3.01 million barrels per day (bpd) on its mainline in the fourth quarter, up from 2.65 million bpd a year earlier.

Outlook

Enbridge has reaffirmed its 2022 financial guidance, announced in December, which included adjusted EBITDA of between C$15 billion and C$15.6 billion, and DCF per share of between C$5.20 and C$5.50.

The company has increased its 2022 quarterly dividend by 3% to C$0.86 (C$3.44 per year) per share, effective with the dividend payable March 1, 2022, to shareholders of record February 15, 2022.

CEO Commentary

Enbridge president and CEO Al Monaco said, “In 2022, we’re positioned to grow EBITDA and DCF per share by over 8%. Execution of our secured growth program and embedded growth supports our 5-7% distributable cash flow per share compound annual growth from 2021 to 2024. This visible cash flow growth outlook and a healthy balance sheet supports our 27th consecutive annual dividend increase, reinforcing the importance we place on returning capital as part of our shareholder value proposition.”

Wall Street’s Take

On February 8, Credit Suisse analyst Andrew Kuske kept a Hold rating on ENB and raised its price target to C$58 (from C$55). This implies 5.3% upside potential.

Overall, ENB scores a Moderate Buy consensus rating among analysts based on nine Buys and five Holds. The average Enbridge price target of C$57.14 implies 3.8% upside potential to current levels.

TipRanks’ Smart Score

Enbridge scores a 6 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with the overall market.

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