By Adriano Marchese
Enbridge's first-quarter profit fell as noncash losses on derivative hedging instruments and softer operating performance weighed on results.
The pipeline and energy transportation company posted a decline in net income on Friday to 1.67 billion Canadian dollars ($1.22 billion), or C$0.77 a share, down from C$2.26 billion, or C$1.04 a share, in the prior-year period.
The decline was largely due to a noncash, unrealized loss on derivative instruments used to hedge foreign exchange, interest rate, and commodity-price risks, it said, as well as weaker operating performance.
Adjusted earnings, which excludes one-off costs and exceptional items, came to C$0.98 a share, topping forecasts of C$0.95 a share, according to FactSet.
Adjusted earnings before interest, taxes, depreciation and amortization fell slightly to C$5.81 billion from C$5.83 billion, missing forecasts of a rise to C$5.72 billion.
Distributable cash flow from liquids pipelines fell to C$2.3 billion from C$2.62 billion, while for gas transmission it rose to C$1.52 billion from C$1.44 billion. Gas distribution and storage distributable cash flow rose to $C$1.71 billion from C$1.6 billion.
Chief Executive Greg Ebel said that the past several months have been marked by volatility and complex conditions for the global energy sector, with sharp swings in commodity prices, shifting geopolitical pressures, and major supply disruptions reshaping the sector.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
05-08-26 0802ET
