U.S. refinery outages, a global glut of high sulphur fuel oil and the U.S. Strategic Petroleum Reserve releases of heavy sour barrels weakened demand for Western Canada Select crude in the fourth quarter. Enbridge, a leading transporter of crude oil and natural gas, delivered 3.1 million barrels of oil per day (bpd) on its Mainline system, slightly higher than the 3 million bpd delivered a year ago. The Calgary-based company lost C$1.07 billion, or 53 Canadian cents, in the fourth quarter, compared with a profit of C$1.84 billion, or 91 Canadian cents per share, in the year-ago quarter. Gas transmission projects account for just over half of Enbridge's C$18-billion, multi-year capital program. Chief Executive Greg Ebel told analysts that Enbridge is in good position to manage inflation because the timing of its projects is staggered. On an adjusted basis, Enbridge earned 63 Canadian cents per share, missing analysts' average expectation of 73 Canadian cents, according to Refinitiv data. The company cited rising interest rates in its lower adjusted earnings. Enbridge shares rose 0.5% in Toronto. Enbridge is in "constructive" negotiations with oil shippers on a new basis to charge for space on its Mainline, Ebel said, after the Canada Energy Regulator rejected in 2021 Enbridge's plan to sell nearly all of its space under long-term contract.
Enbridge currently rations Mainline space monthly and
faces new competition when the Trans Mountain pipeline expansion
wraps up late this year.
The Mainline is Canada's longest oil pipeline, moving
crude from Western Canada to refineries in Eastern Canada and
the U.S. Midwest.
($1 = 1.3447 Canadian dollars)
(Reporting by Arshreet Singh and Rod Nickel; Editing by Devika
Syamnath and Marguerita Choy)
