Enbridge beats second-quarter profit estimates on higher Mainline volumes (updated)

Enbridge

31/07/2026 12:17

Company reaffirms 2026 adjusted EBITDA forecast
Enbridge added over $1 billion to secured growth backlog in Q2 
Company expects Line 5 Relocation project to enter service in early 2027
Adds graphic and analyst comment in paragraph 5
By Pooja  Menon
July 31 (Reuters) - Enbridge ENB.TO beat estimates for second-quarter adjusted profit on Friday, as the Canadian pipeline operator benefited from higher volumes on its Mainline system.
Pipeline operators are benefiting from increasing demand for natural gas, utility infrastructure and power supply for data centers, which has helped them generate steady growth even amid geopolitical tensions and commodity price volatility.
Its Mainline system, which moves nearly half of the crude in the United States, reported second-quarter adjusted core profit of C$1.57 billion ($1.12 billion), up from C$1.5 billion a year earlier.
The pipeline system transports light and heavy crude oil, natural gas liquids and refined products from Edmonton, Alberta, to various markets in Canada and the U.S. Midwest.
"We suspect investors will increasingly start to focus on how existing Mainline volumes might shift if Canada becomes flush with new egress options over the next 5-7 years," analysts at Raymond James said.
    The Trans Mountain expansion, capacity additions on existing pipeline networks and South Bow's SOBO.TO Keystone system are expanding market access for Alberta crude, giving producers more routes to domestic and export markets.
Enbridge reported adjusted core profit of C$1.42 billion from its gas transmission unit, up from C$1.38 billion a year earlier.
It added more than C$1 billion of projects to its secured growth backlog during the quarter with the sanctioning of the Line 5 Relocation project in Wisconsin, bringing the total backlog to about C$41 billion.
Enbridge expects the project to cost $1 billion and enter service in early 2027.
CEO Greg Ebel said the company was well positioned to capitalize on a favorable growth environment and would continue to provide more visibility on its 5% growth forecast and extend it further into the future.
The company reported adjusted profit of 63 Canadian cents per share for the quarter ended June 30, beating analysts' average expectation of 59 Canadian cents, according to data compiled by LSEG. 
     
($1 = 1.4021 Canadian dollars)

 (Reporting by Pooja Menon in Bengaluru; Editing by Shreya Biswas and Tasim Zahid)
 ((Pooja.Menon@thomsonreuters.com;))