Enbridge(US:ENB)2025-11-07 12:03Financial Performance - Total operating revenues for Q3 2025 were CAD 14,639 million, a slight decrease of 1.6% compared to CAD 14,882 million in Q3 2024[16] - Commodity sales decreased to CAD 8,396 million in Q3 2025 from CAD 8,986 million in Q3 2024, representing a decline of 6.6%[16] - Operating income for the nine months ended September 30, 2025, increased to CAD 8,232 million, up 14.3% from CAD 7,202 million in the same period of 2024[16] - Earnings attributable to common shareholders for Q3 2025 were CAD 682 million, down 47.3% from CAD 1,293 million in Q3 2024[16] - Comprehensive income attributable to common shareholders for the nine months ended September 30, 2025, was CAD 3,357 million, a decrease of 41.5% compared to CAD 5,729 million in the same period of 2024[18] - Total revenues for the nine months ended September 30, 2025, were $47,000 million, compared to $36,531 million for the same period in 2024, representing a significant increase of 28.4%[46] - Earnings before income taxes for the nine months ended September 30, 2025, were $7,337 million, compared to $6,450 million for the same period in 2024, indicating a year-over-year increase of 13.7%[46] - Earnings attributable to common shareholders increased to CAD 5,120 million, up from CAD 4,560 million in the same period of 2024, representing a growth of 12.3%[198] Cash Flow and Expenditures - Net cash provided by operating activities for the nine months ended September 30, 2025, was CAD 9,159 million, an increase from CAD 8,938 million in 2024[22] - Capital expenditures for the nine months ended September 30, 2025, were CAD 5,944 million, compared to CAD 4,165 million in the same period of 2024, reflecting a 42.7% increase[22] - Capital expenditures for the three months ended September 30, 2025, totaled $2,347 million, up from $1,652 million in the same period of 2024, marking an increase of 42.0%[49] Assets and Liabilities - The total equity of Enbridge Inc. as of September 30, 2025, was CAD 68,076 million, a decrease from CAD 68,778 million at the end of 2024[20] - Total assets decreased to CAD 216,973 million as of September 30, 2025, down from CAD 218,973 million at December 31, 2024, representing a decline of 0.91%[24] - Current liabilities decreased significantly from CAD 23,812 million to CAD 15,041 million, a reduction of 36.5%[24] - Total liabilities decreased to CAD 148,161 million as of September 30, 2025, down from CAD 150,080 million at December 31, 2024, a decrease of 1.3%[24] - Long-term debt increased to CAD 100,602 million from CAD 93,414 million, reflecting an increase of 7.8%[24] Dividends and Shareholder Returns - The company declared common share dividends of CAD 2.82 per share for the nine months ended September 30, 2025, up from CAD 2.76 in 2024[20] - The quarterly dividend per share on Preference Shares, Series I decreased to $0.29980 from $0.30058[59] - The quarterly dividend per share on Preference Shares, Series 15 increased to $0.35163 from $0.18644[60] - The Board of Directors declared a quarterly dividend of $0.94250 per common share, payable on December 1, 2025[58] Acquisitions and Investments - The acquisition of Public Service Company of North Carolina was completed for cash consideration of $2.7 billion, with estimated fair values assigned to net assets including $4,147 million in property, plant, and equipment[63][64] - The acquisition of Questar Gas Company was completed for cash consideration of $4.1 billion, with estimated fair values assigned to net assets including $6,013 million in property, plant, and equipment[66][67] - The acquisition of The East Ohio Gas Company was completed for cash consideration of $5.8 billion, with estimated fair values assigned to net assets including $7,276 million in property, plant, and equipment[71][73] - The acquisition of six Morrow Renewables operating landfill gas-to-renewable natural gas production facilities was completed for total consideration of $1.3 billion, with $584 million paid at close[78][79] Risk Management - The company has exposure to commodity price risk, with financial and physical derivative instruments employed to manage this risk[120] - The company has implemented risk management policies to mitigate market risks, including foreign exchange, interest rate, commodity price, and equity price risks[113] - The company actively monitors the financial strength of large industrial customers to mitigate credit risk associated with trade receivables[141] Derivative Instruments and Fair Value - The company reported an unrealized loss on derivatives of CAD 270 million for the three months ended September 30, 2025, compared to a gain of CAD 140 million in the same period of 2024[132] - The total notional amount of foreign exchange contracts for US dollar forwards sold is CAD 18,629 million, with the largest portion maturing in 2026 at CAD 5,872 million[125] - The fair value of Level 1 investments was $838 million, while Level 2 investments were $407 million, compared to $491 million and $507 million respectively as of December 31, 2024[160] - The fair value of Level 3 derivative instruments improved significantly, with a net asset of $190 million at the end of the period, compared to a liability of $52 million at the beginning[155] Taxation - The effective income tax rate for the three months ended September 30, 2025, was 27.2%, an increase from 17.7% in 2024[165] - The effective income tax rate increased due to higher US minimum tax and prior year tax benefits, impacting the overall tax expense which was CAD 1,679 million for the nine months ended September 30, 2025, compared to CAD 1,437 million in 2024[167] Segment Performance - The Liquids Pipelines segment reported earnings of CAD 7,207 million for the nine months ended September 30, 2025, compared to CAD 7,179 million in the prior year, reflecting a slight increase of 0.4%[198] - Gas Distribution and Storage segment earnings rose significantly to CAD 2,670 million for the nine months ended September 30, 2025, compared to CAD 1,854 million in 2024, marking an increase of 44%[198] - The Gas Transmission segment reported EBITDA of $1,270 million for the three months ended September 30, 2025, an increase from $1,146 million in 2024, driven by increased revenues from rate case settlements[207][208] - The Renewable Power Generation segment's EBITDA decreased to $89 million for the three months ended September 30, 2025, down from $102 million in 2024, impacted by lower unrealized gains on derivative instruments[214]