By Robb M. Stewart

Enbridge recorded a slump in earnings for the latest quarter as the pipeline operator and gas utility was squeezed by accounting changed on derivative instruments.

The Canadian energy company recorded earnings of 493 million Canadian dollars ($347.3 million), or C$0.23 a share, down sharply from C$1.73 billion, or C$0.81 a share, in the same period last year. On an adjusted basis, per-share earnings came in at C$0.75, in line with the mean forecast of analysts polled by FactSet.

Earnings before interest, taxes, depreciation and amortization fell to C$3.66 billion for the fourth quarter from C$3.81 billion a year earlier.

Ebitda from Enbridge's liquids pipelines operations fell 3.6% to C$2.35 billion, but rose 10% for its gas transmission business to C$1.15 billion. Gas distribution Ebitda jumped to C$1.02 billion from C$238 million the year before, and it swung to earnings of C$236 million from a loss of C$146 million for its renewable power generation unit.

The company said its earnings were dented by unrealized changes in the value of derivative financial instruments used to manage foreign exchange, interest rate and commodity price risks as well as the absence in 2024 of non-cash gains recognized as a result of the discontinuation of rate-regulated accounting for the Southern Lights pipeline running from Illinois to Alberta.

These effects partially offset by lower impairments related to certain capital projects, capital costs and pension balances in the fourth quarter of 2023, it said.

Enbridge, which moves roughly 30% of the crude oil produced in North America and nearly 20% of the natural gas consumed in the U.S., continues to target adjusted Ebitda in 2025 of between C$19.4 billion and C$20 billion. That would compare with C$18.62 billion last year on the same basis, beating the C$18.3 billion top end of guidance from the company.

The growth this year will be driven by recent acquisitions and projects coming into service, as well as a rate settlement in Texas.

The company in October closed the acquisition of Public Service Co. of North Carolina from Dominion Energy, adding a portfolio that includes more than 13,000 miles of natural has distribution and transmission pipelines and an under-construction liquefied natural gas storage facility. The business was the last of a trio of Dominion utilities that Enbridge picked up, including Questar Gas and Wexpro which were bought for US$4.3 billion including debt.

TC Energy, which operates almost 58,000 miles of natural has pipelines in North America plus seven power-generation facilities, on Friday reported income of C$971 million for the fourth quarter, down from C$1.46 billion following the spin off of its liquids pipelines business. Comparable Ebitda fell to C$2.62 billion from C$3.11 billion the year before.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

February 14, 2025 08:25 ET (13:25 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.