ENB

Canada's Enbridge forecasts higher 2024 earnings, raises dividend

Credit: REUTERS/CHRIS HELGREN

Adds details and background in paragraph 2,3 and 4

Nov 29(Reuters) - Enbridge ENB.TO, ENB.N on Wednesday forecast higher core earnings for 2024 and raised its annual dividend as the Canadian pipeline operator bets on higher demand to lift volumes transported across its network.

Profits at Canadian oil and gas transportation have been buoyed by low U.S. inventory levels and increased exports as buyers sought alternatives to Russian oil since Moscow's invasion of Ukraine last year.

Meanwhile, industry experts have forecast that Canadian oil and gas producers will drill 8% more wells in 2024 to take advantage of greater access to pipelines.

The upbeat forecast from Enbridge, which operates the Mainline oil pipeline system that ships the bulk of Canada's crude exports to the U.S., follows peer TC Energy TRP.TOestimating higher adjusted core earnings for 2024 on Tuesday.

Enbridge expects adjusted core earnings to be between C$16.6 billion ($12.23 billion) and C$17.2 billion next year, higher than its 2023 expectations of C$15.9 billion to C$16.5 billion.

The company raised its 2024 dividend by 3.1%.

($1 = 1.3569 Canadian dollars)

(Reporting by Tanay Dhumal in Bengaluru; Editing by Sriraj Kalluvila)

((Tanay.Dhumal@thomsonreuters.com; Twitter: https://twitter.com/TanayDhumal;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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