Summary
Enbridge Inc. reported its financial results for the quarter and six months ended June 30, 2022. For the three months ended June 30, 2022, Enbridge reported earnings attributable to common shareholders of $450 million, or $0.22 per common share, a significant decrease from $1,394 million, or $0.69 per common share, in the same period last year. This decline was primarily driven by non-cash, net unrealized derivative fair value losses of $850 million, compared to unrealized gains in the prior year, and other infrequent items. Despite the short-term earnings dip, the company's operational segments, particularly Liquids Pipelines and Gas Transmission and Midstream, showed underlying strength in performance, benefiting from higher throughputs, new project contributions, and favorable commodity prices. For the six months ended June 30, 2022, earnings attributable to common shareholders were $2,377 million, or $1.17 per common share, compared to $3,294 million, or $1.63 per common share in the prior year. This reduction was also significantly influenced by unrealized derivative fair value losses and other non-operating items. Enbridge's balance sheet remains robust, with total assets of $172.8 billion and total equity of $64.5 billion. The company also maintained strong liquidity, with available credit facilities and unrestricted cash totaling $6.9 billion, underscoring its financial flexibility to fund ongoing capital projects and meet its obligations.
Key Highlights
- 1Earnings attributable to common shareholders decreased significantly to $450 million for Q2 2022 from $1,394 million in Q2 2021, largely due to unrealized derivative fair value losses.
- 2For the six months ended June 30, 2022, earnings attributable to common shareholders were $2,377 million, down from $3,294 million in the same period last year, also impacted by derivative valuation changes.
- 3Segment EBITDA showed resilience, with Liquids Pipelines benefiting from higher throughput and the L3R surcharge, and Gas Transmission and Midstream boosted by higher commodity prices and new projects.
- 4The company reported total assets of $172.8 billion and total equity of $64.5 billion as of June 30, 2022.
- 5Enbridge maintained strong liquidity with $6.9 billion in available credit facilities and unrestricted cash, providing financial flexibility for capital expenditures and operations.
- 6The company executed various financing activities during the period, including debt issuances and renewals of credit facilities, to manage its capital structure and liquidity.