Enbridge, a Canadian pipeline operator, anticipated greater core earnings in 2022 and announced a share repurchase program worth up to C$1.5 billion ($1.18 billion), betting on increased oil and gas demand.
Pipeline owners are profiting from a rebound in shipping volumes as energy prices have risen from COVID-19 epidemic lows, owing to increased global fuel demand.
The business estimates 2022 EBITDA (profits before interest, taxes, depreciation, and amortization) to be in the range of C$15 billion to C$15.6 billion, up from C$13.9 billion to C$14.3 billion in 2021.
Enbridge also increased its quarterly dividend by 3%, to 86 Canadian cents per share, beginning in March.
As part of its three-year plan, the firm intends to have C$5 billion to C$6 billion in annual investment capacity, and it has approved C$1.1 billion in new capital projects.
The pipeline operator also anticipates 2022 distributable cash flow per share of C$5.20 to C$5.50, which is approximately 9% to 10% higher than its 2021 outlook.