(Reuters) – Enbridge surpassed market estimates for first-quarter profit on Friday, driven by higher earnings from its Mainline system and gas distribution unit, and said that U.S. tariffs were not expected to materially impact its current operations.
Canada is the leading supplier of imported oil to the United States, delivering about 4 million barrels per day, primarily to Midwest refineries designed to process its specific grades.
In addition to its liquid pipeline operations, Enbridge acquired three utilities from U.S.-based Dominion Energy last year, expanding its gas distribution business. This led to a rise in earnings from its gas distribution unit to C$1.60 billion ($1.15 billion), from C$765 million last year.
Meanwhile, the company’s Mainline system, which moves nearly half of the crude in the U.S., saw a rise in first-quarter adjusted core profit to C$1.45 billion, from C$1.34 billion last year.
“The Mainline was apportioned the entire quarter, delivering a first quarter record of 3.2 million barrels per day, and illustrating its critical role in the transportation of oil to key demand centers,” Enbridge CEO Greg Ebel said in a statement.
“The continued need for efficient, reliable service underpins the sanctioning of up to C$2 billion of Mainline capital investment,” Ebel said.
Earlier in April, the U.S. Army Corps of Engineers granted national energy emergency status for a tunnel proposed by Enbridge for its Line 5 oil pipeline, fast-tracking a key federal permitting process.
The pipeline tunnel is among the first to get an emergency designation after U.S. President Donald Trump declared a national energy emergency in a January executive order.
The company reported adjusted profit of C$1.03 per share for the quarter ended March 31, beating analysts’ average expectation of 96 Canadian cents per share, according to data compiled by LSEG.
($1 = 1.3917 Canadian dollars)
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