Enbridge Inc., Canada’s largest pipeline company, posted a second-quarter profit that exceeded expectations after revenue from oil, petroleum liquids and natural gas distribution rose.
Net income, excluding some non-recurrent items, rose to C$505 million ($387 million), or 60 cents, in the quarter from C$328 million, or 40 cents, a year earlier, the Calgary-based company said in a statement Friday. That beat the 47-cent average of 12 analysts’ estimates compiled by Bloomberg.
While oil and gas producers have been reeling from the collapse of energy prices, firing workers and cutting costs, pipeline fees provide a steadier source of income. Lines such as Enbridge’s Flanagan South and Seaway Twin have expanded Canadian crude shipments to the Gulf Coast, and the operator plans to spend C$44 billion through 2018 to build new gas lines, power plants and other projects.
“In the current price environment, cost effective, reliable access to key markets is even more critical for our customers,” Chief Executive Al Monaco said in the statement.
Shares of Enbridge gained 1.3 percent to $57.01 at the close in Toronto.
Enbridge’s revenue from pipelines transporting liquids increased 9 percent in the quarter to C$240 million, and gas distribution revenue tripled to C$45 million.
The company booked a goodwill charge of C$167 million related to Enbridge Energy Partners’ gas and gas liquids business, in addition to a smaller gain for unrealized derivative revaluations than in the year-earlier period.
Net income after non-recurrent items fell to C$577 million from C$756 million a year earlier.