(Reuters) – Canadian pipeline operator Enbridge Inc on Tuesday forecast higher core earnings in 2022 and announced a share repurchase of up to C$1.5 billion ($1.18 billion), betting on rising demand for oil and gas.
Pipeline operators are benefiting from a recovery in shipping volumes as energy prices have bounced back from the COVID-19 pandemic lows on the back of strengthening global fuel demand.
The company expects 2022 EBITDA (earnings before interest, taxes, depreciation and amortization) to be in the range C$15 billion to C$15.6 billion, higher than its 2021 expectations of C$13.9 billion to C$14.3 billion.
Enbridge also raised its quarterly dividend by 3% to 86 Canadian cents per share, effective March.
The company expects to have C$5 billion to C$6 billion of annual investment capacity as part of its three-year plan, and said it had sanctioned C$1.1 billion of new capital projects.
The pipeline operator also forecasts 2022 distributable cash flow per share of C$5.20 to C$5.50, about 9% to 10% higher than its 2021 guidance.
($1 = 1.2682 Canadian dollars)
(Reporting by Arunima Kumar in Bengaluru; Editing by Amy Caren Daniel)
