Enbridge reports $1.1B Q4 loss as it takes $2.5B goodwill impairment charge
Enbridge Inc. reported a loss of $1.1 billion in its latest quarter as it took a $2.5-billion non-cash goodwill impairment charge related to its gas transmission business as a result of what it said was the increased cost of capital.
The pipeline company says the loss amounted to 53 cents per share for the quarter ended Dec. 31 compared with a profit of $1.8 billion or 91 cents per share in the last three months of 2021.
On an adjusted basis, Enbridge says it earned 63 cents per share in its latest quarter, down from 68 cents per share a year earlier.
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The company says the drop in adjusted earnings was primarily due to higher financing costs from rising interest rates on floating-rate debt and increased depreciation costs on new assets placed into service in the fourth quarter of 2021.
Analysts on average had expected a profit of 73 cents per share, according to estimates compiled by financial markets data firm Refinitiv.
In its outlook, Enbridge reaffirmed its 2023 financial guidance, including adjusted earnings before interest, taxes, depreciation and amortization between $15.9 billion and $16.5 billion and distributable cash flow per share between $5.25 to $5.65.
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