Canada Pipeline Operator Enbridge's Quarterly Profit Rises on Strong Volumes

Canadian pipeline operator Enbridge Inc. reported a rise in second-quarter profit on Friday as delivery volumes were lifted by oil and gas companies boosting production to take advantage of steady commodity prices.

(Reuters) — Canadian pipeline operator Enbridge Inc. reported a rise in second-quarter profit on Friday as delivery volumes were lifted by oil and gas companies boosting production to take advantage of steady commodity prices.

The company's U.S.-listed shares rose 1.2% to $36.41 in premarket trading.

Enbridge's Mainline system, which ships the bulk of Canadian crude to the United States, transported 3 million barrels per day (bpd) in the second quarter, compared with 2.8 million bpd a year earlier.

The Mainline system earned C$1.45 billion in the quarter, up 19% from last year.

The system saw record volumes in the quarter, Chief Executive Greg Ebel said in a statement.

The company reaffirmed its 2023 core earnings guidance, and posted adjusted earnings of 68 Canadian cents, in line with analysts' average expectations, according to data from Refinitiv.

Gains from a favorable dollar exchange rate were partially offset by higher power costs, the company said.

The Calgary, Alberta-based company reported net income of C$1.8 billion ($1.35 billion), or 91 Canadian cents per share, for the quarter ended June 30, compared with C$450 million, or 22 Canadian cents per share, in the same period last year.

($1 = 1.3371 Canadian dollars)