Pipeline Operators See Big Gains

The price of crude oil experienced an almost unprecedented slump during the COVID-19 pandemic, losing nearly half its value. As a result, a range of companies are earning more and growing stronger. On Friday, Enbridge ($ENB@Canada) Inc reported a better-than-expected profit, benefiting from an increase in crude oil prices and demand, which has increased volumes in its pipelines. Enbridge transported around 2.6 million barrels per day in the Mainline system in the last quarter, up 4.6% from a year ago. Its adjusted earnings rose 23.2% to just over 1.2 billion Canadian dollars or 59 Canadian cents per share in the last quarter, beating analysts estimates by 2 cents per share. Competitor TC Energy ($TRP@Canada) is reporting higher adjusted earnings in the 3rd quarter as it saw increased transportation rates in the Columbia pipeline, achieving earnings per share of 99 Canadian cents. TC now expects to see full-year comparable earnings per share rise over last year’s figures. Enbridge, for its part, kept its forecast level. TC Energy stock fell nearly a tenth of a percent in early trading while Enbridge stock fell just over half a percent in early trading.