Enbridge Inc. (ENB), an energy infrastructure company, has declined 0.25% in aftermarket trading session and consequently is trading at $39.97 at the time of the writing. On Thursday, ENB closed the day at $40.07 after declining 0.37% during regular trading hours. The decline could be attributed to the order of the Michigan governor for Enbridge to shut Line 5.
Why ENB Declining?
Michigan governor Gretchen Whitmer has recently placed an order for ENB to shut Line 5, an oil and propane pipeline. The governor has cited the reason that the line is an environmental threat to the great lakes existing in the region. In response, Enbridge has refused to comply with his order. The company has argued that the governor is exceeding the limits of his authority. Line 5 is a crucial pipeline, which provides propane to the homes across Michigan as well as to the refineries as far as in Ontario. The development has proven to be a negative sentiment for ENB stock, as depicted from its continuous decline.
Q3 2021 Financial Results
Earlier in November, ENB released the financial results for the third quarter of the fiscal year 2021. The quarter ended on 30th September 2021. The GAAP earnings attributable to the common shareholders generated by the company during the quarter were $682 million against $990 million for the same quarter of 2020. The GAAP earnings per common share were $0.34 during the period against $0.49 for the same period of 2020. The Cash provided by the operating activities was $2.16 billion during the period against $2.3 billion for the same period of 2020. The adjusted EBITDA was $3.2 billion while adjusted earnings were $1.1 billion during the quarter.
Financial Outlook
Alongside the financial results, ENB also reported the financial outlook for the complete fiscal year 2021. The company hoped that the full-year EBITDA and DCF would remain in the range of $13.9 billion to $14.3 billion and $4.70 to $5 per share. The company expects that the DCF would get benefit from decreasing costs of financing which would be the consequence of a favorable short-term interest rate. The EBITDA is expected to gain the benefit of the strong operating performance depicted by the company. Hence, the financial outlook appears to be positive for the company.
What’s Ahead for ENB?
Statistics reveal that ENB stock has not experienced much volatility during the last few months, i.e. it has neither skyrocketed nor plunged to new depths. This shows that the stock has a sense of stability associated with it, which could aid potential investors about their investments in the long run.
