Enbridge Inc. Posts Profit and Mulls Asset Sales

On Thursday, February 15 Reuters released a report that claimed Enbridge Inc. (TSX:ENB)(NYSE:ENB) planned to double its 2018 asset sales target to around $8 billion. Enbridge released its 2017 fourth quarter and full-year results on Friday. CEO Al Monaco demurred when asked about the report, and urged reporters to treat it with “caution”.

In the fourth quarter Enbridge posted earnings of $207 million or $0.13 per share and earnings of $2.53 billion or $1.66 per share for the full year. Enbridge completed the merger with Spectra Energy Partners to create the largest North American energy infrastructure company. Enbridge improved its project pipeline and brought $12 billion worth of growth projects into service in 2017, with $22 billion secured for projects into 2020.

Enbridge also hiked its dividend by 15% in 2017, 10% in 2018, and plans to have annual hikes of 10% into 2020. The stock offers a quarterly dividend of $0.67 per share representing a 6.1% dividend yield.

Oil prices have been battered as the global stock market rout and rising U.S. inventories have generated downward pressure. As of early afternoon trading on February 16 oil was trading at over $61. Enbridge stock was up 0.62% in early afternoon trading and shares have plunged 11.3% in 2018 thus far.

A positive fourth quarter should inspire investors to take a look, and the Reuters report could be a classic case of “buy the rumour” as CEO Al Monaco did not actively deny the report. And of course, for those seeking income, the monster dividend at Enbridge is always attractive.