- Enbridge (NYSE:ENB) +1.7% pre-market after reporting better than expected Q1 earnings that also topped the year-earlier figure.
- On a GAAP basis, Enbridge came in with a C$1.43B Q1 loss, hit by nearly C$4B in charges related to derivative losses and its investment in DCP Midstream (NYSE:DCP).
- Q1 adjusted EBITDA was C$3.76B vs. C$3.77B in the prior-year period.
- Q1 distributable cash flow was C$2.71B vs. C$2.76B a year ago, and the company reaffirms its full-year distributable cash flow per share guidance of C$4.50-C$4.80.
- Enbridge said the COVID-19 outbreak and resulting decline in demand for fuel pressured its Mainline system during Q1, as throughput on the system was down by ~400K bbl/day in April, compared with the Q1 average of 2.84M bbl/day.
- The company expects lower utilization rates will continue through the end of Q2.
- Enbridge says it plans to reduce 2020 operating costs by C$300M, including company-wide compensation reductions for the board and management team, and will defer ~C$1B of 2020 secured growth capital spending to reflect refined execution schedules in light of COVID-19.