Enbridge Ends Q2 2021 With $10.9 Billion In Revenue

Enbridge Inc. (TSX: ENB) released this morning its Q2 2021 financial results, which saw the company post $10.9 billion in revenue. This is a notable increase from Q2 2020’s revenue of $8.0 billion.

The majority of the quarterly revenue came from the company’s commodity sales, notching $6.3 billion. The other revenue streams came from transportation and other services, and gas distribution sales, contributing $3.9 billion and $737 million, respectively.

The company’s operating margin, however, dropped to 16.6% from 26.4% last year. The cost of commodities sold, $6.4 billion, came in higher than the commodity sales.

Enbridge recorded $1.4 billion in net earnings for the quarter, a decrease from last year’s $1.6 billion. This translates to $0.69 earnings per share.

The firm reiterated it is on track to meet its EBITDA guidance for 2021 of $13.9 billion to $14.3 billion. To date, it has recorded $7.4 billion EBITDA for the year.

For the six months ending June 30, 2021, the firm’s net cash from operating activities came in at $4.8 billion, down from last year’s $5.2 billion. On the other hand, its distributable cash flow for the quarter is at $2.5 billion or $1.24 per common share, marginally up from last year’s $2.4 billion. The company also maintained it is on track to meet its 2021 guidance for distributable cash flow per share of $4.70 to $5.00.

The company ended the quarter with $374 million in cash and cash equivalents, down from its December 31, 2020 balance of $452 million.

The energy firm has earmarked approximately $10 billion for expansion projects this year, including the replacement of its Line 3 pipeline, expansion of its B.C. pipeline, modernization efforts for its gas transmissions, and construction of its offshore wind projects.

Enbridge last traded at $49.45 on the TSX.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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