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Summary
- Enbridge posted a better EBITDA for 2020 as compared to 2019.
- It also increased its quarterly dividend for 2021 by 3 per cent, which is C$ 0.835 per common share.
- The bluechip energy stock has swelled almost 10 per cent this year, with an active trading volume of 11 million for the last 30 days.
Enbridge stocks slumped by 1.5 per cent in early trade on Friday morning (at 10:52 am ET) despite reporting a higher EBIDTA for the fourth quarter of 2020.
The EBITDA improved by C$15 million to C$ 3.2 billion in Q4. It also hiked its quarterly dividend payout by 3 per cent to C$ 0.835 per share, straight 26th successive annual rise.
Its adjusted earnings were C$4.9 billion for the full-year 2020, slightly down from C$5.3 billion in 2019. The fall was because of the COVID-forced operational shutdowns.
Its full-year adjusted EBITDA remained stagnant year-over-year at C$ 13.3 billion.
Cash generated from operating activities was C$ 9.8 billion in 2020, up more than 4 per cent versus C$ 9.4 billion in 2019.
Let us delve into the giant energy stock’s performance:
Enbridge Inc. (TSX: ENB)
The energy firm’s stock has grown almost 10 per cent this year, with a massive 30-day volume of nearly 11 million. The bluechip company is also generating clean energy with 2,000 megawatts of power.
Its stock is currently trading at around C$ 44, as compared to its 52-week high of C$ 57.13. The company holds an attractive dividend yield of 7.496 per cent, with a return on equity of 3.15 per cent.
It is yet to rebound completely from last year’s slump and one-year return is down 14.55 per cent. Its earnings per share is C$ 0.97, and the price-to-book ratio is 1.571.
Image Source: Kalkine Group @2020
A Glance At Outlook 2021
Enbridge reported 4.6x debt-to-EBITDA and anticipates staying within its target between 4.5 to 5.0x during 2021.
As of December 31, 2020, it held available liquidity of more than C$ 13 billion. The company claims that it has an excess capital to fulfill all its operations through 2021 without any fresh credit facility.
