Pipeline operator Enbridge beats profit estimates as oil recovers

Pipeline operator Enbridge Inc reported second-quarter profit that beat expectations on Friday, as oil volumes transported on its Mainline system rose from a year ago due to a rebound in fuel demand.

The performance reflects a steady recovery in Canada's oil and gas industry as rising oil prices encourage companies to restore production that they shut earlier in the pandemic.

Enbridge transported 2.6 million barrels per day (bpd) on Mainline in the second quarter, 7.5 per cent higher than a year ago.

However, it moved less oil than it did in the first three months of the year, when it transported 2.75 million bpd.

The company had warned that scheduled maintenance for oilsands upgraders and refineries would be more concentrated between April and June than previously anticipated.

For the full year, Enbridge expects to transport 2.8 million bpd on average.

The Calgary-based company said that it had formed an agreement with technology company Svante Inc and other firms to explore carbon capture opportunities.

Enbridge is talking with oilsands producers and other heavy industries about potential involvement, but needs clarity from the government on the tax credit it is developing, executive vice-president of Liquids Pipelines Vern Yu said on a call with analysts.

Enbridge expects full-year 2021 EBITDA and distributable cash flow to remain within its previously provided outlook of between $13.9 billion and $14.3 billion and $4.70 to $5.00 per share, respectively.

Enbridge reported adjusted earnings of $1.36 billion, or 67 cents per share, in the second quarter.

That beat the average analysts' estimate of 57 cents, according to Refinitiv IBES.

Rival company TC Energy also beat estimates for quarterly profit on Thursday, as demand for its transport services returned with recovery in fuel prices.