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Enbridge’s earnings slip as revenues plunge 40 per cent due to COVID-19 aftermath

Enbridge logos are on display at the company's annual meeting in Calgary, Thursday, May 12, 2016. Jeff McIntosh / The Canadian Press

Enbridge Inc. is reporting that its net income slipped to $1.65 billion in the second quarter on a 40 per cent drop in revenues due to lower crude oil prices caused by the COVID-19 pandemic and OPEC price war.

The Calgary-based energy company says it earned 82 cents per share for the three months ended June 30, down from 86 cents per share or $1.74 billion a year earlier.

Adjusted profit came in at $1.13 billion or 56 cents per share, compared with $1.35 billion or 67 cents per share in the second quarter of 2019.

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Revenues plunged to nearly $8 billion from $13.3 billion a year earlier.

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Enbridge was expected to report 55 cents per share in adjusted profits on $12.5 billion in revenues, according to financial markets data firm Refinitiv.

The pipeline company reaffirmed its cash flow guidance for 2020 and anticipates a gradual recovery in demand as travel and border restrictions are lifted and mobility returns to North America.

“In the face of the worst energy downturn our industry has ever experienced, the strength and resilience of our assets was demonstrated once again in the second quarter, with solid financial results,” said CEO Al Monaco.

Click to play video: 'Enbridge Line 3 replacement pipeline delayed'
Enbridge Line 3 replacement pipeline delayed

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