May 10, 2024 [Reuters]- Pipeline operator Enbridge beat market estimates for first-quarter profit on Friday, as demand remained strong amid an uptick in oil production across North America.

Improvements in technology have driven rapid growth in U.S. oil production over the past few years, benefiting pipeline operators such as Enbridge.

The company recorded strong demand for its Flanagan South Pipeline and the Enbridge Ingleside Energy Center, the largest crude oil storage and export terminal by volume in the United States.

Its U.S.-listed shares rose 1.1% premarket.

Adjusted core profit at its liquids pipelines segment rose to C$2.46 billion ($1.80 billion) from C$2.34 billion last year.

Transport volumes at Enbridge’s Mainline – North America’s biggest oil pipeline network – rose marginally from last year, helped by a surge in Canadian oil sands production and a delay in the start-up of a government-owned rival pipeline to the second quarter.

“In Liquids, we saw high utilization across our systems including another quarter of strong Mainline performance,” said CEO Greg Ebel.

The company, which transports nearly a fifth of the natural gas consumed in the U.S., said adjusted core earnings from its gas transmission segment rose 7.1% to C$1.27 billion.

On an adjusted basis, Enbridge reported a quarterly profit of 92 Canadian cents per share for the three months ended March 31, compared with analysts’ average estimate of 81 Canadian cents per share, according to LSEG data.

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