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Dec 31, 2024
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Enbridge Q4 2024 Earnings Report
Enbridge reported a decline in Q4 2024 earnings compared to the previous year, but achieved record adjusted EBITDA and distributable cash flow.
Key Takeaways
Enbridge's Q4 2024 results showed a decrease in GAAP earnings compared to Q4 2023, primarily due to non-cash unrealized derivative losses. However, adjusted EBITDA and distributable cash flow both increased significantly, driven by acquisitions, higher Mainline system tolls, and favorable contracting in Gas Transmission. The company reaffirmed its 2025 financial guidance and continued executing on key strategic initiatives.
GAAP earnings for Q4 2024 decreased to CAD 493 million from CAD 1.726 billion in Q4 2023.
Adjusted EBITDA increased to CAD 5.13 billion, up from CAD 4.107 billion in Q4 2023.
Distributable cash flow rose to CAD 3.074 billion, a year-over-year increase of CAD 342 million.
The company reaffirmed its 2025 financial guidance and increased its quarterly dividend by 3%.
Enbridge
Enbridge
Forward Guidance
Enbridge reaffirmed its 2025 guidance, expecting adjusted EBITDA between CAD 19.4 billion and CAD 20.0 billion, and DCF per share between CAD 5.50 and CAD 5.90.
Positive Outlook
- Expected strong contributions from recently acquired U.S. gas utilities.
- Growing demand for energy infrastructure, particularly in North America.
- Stable cash flows from long-term contracted assets.
- Increased investments in renewable energy and low-carbon solutions.
- Dividend growth expected to continue.
Challenges Ahead
- Higher financing costs due to recent acquisitions and capital investments.
- Increased depreciation expenses from new assets placed in service.
- Potential impacts from U.S. minimum tax changes.
- Uncertainty in regulatory decisions affecting gas transmission projects.
- Warmer-than-normal weather potentially impacting gas distribution earnings.