Enbridge : (769 KB) PDF

ENBRIDGE INC.

CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

June 30, 2022

ENBRIDGE INC.

CONSOLIDATED STATEMENTS OF EARNINGS

	Three months ended	Six months ended
	June 30,	June 30,
	2022	2021		2022	2021
(unaudited; millions of Canadian dollars, except per share amounts)
Operating revenues
Commodity sales	8,108	6,334		16,433	12,763
Gas distribution sales	905	737		3,003	2,277
Transportation and other services	4,202	3,877		8,876	8,045
Total operating revenues (Note 3)	13,215	10,948		28,312	23,085
Operating expenses
Commodity costs	8,181	6,430		16,472	12,628
Gas distribution costs	456	289		1,912	1,239
Operating and administrative	1,994	1,484		3,869	3,043
Depreciation and amortization	1,064	929		2,119	1,861
Total operating expenses	11,695	9,132		24,372	18,771
Operating income	1,520	1,816		3,940	4,314
Income from equity investments	510	352		1,001	747
Other income/(expense)
Net foreign currency gain/(loss)	(581)	159		(212)	311
Other	82	82		171	191
Interest expense	(791)	(618)		(1,510)	(1,275)
Earnings before income taxes	740	1,791		3,390	4,288
Income tax expense (Note 9)	(133)	(270)		(726)	(753)
Earnings	607	1,521		2,664	3,535
Earnings attributable to noncontrolling interests	(12)	(37)		(40)	(59)
Earnings attributable to controlling interests	595	1,484		2,624	3,476
Preference share dividends	(145)	(90)		(247)	(182)
Earnings attributable to common shareholders	450	1,394		2,377	3,294
Earnings per common share attributable to common	0.22	0.69		1.17	1.63
shareholders (Note 5)
Diluted earnings per common share attributable to	0.22	0.69		1.17	1.63
common shareholders (Note 5)

The accompanying notes are an integral part of these interim consolidated financial statements.

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ENBRIDGE INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three months ended	Six months ended
	June 30,			June 30,
	2022		2021		2022		2021
(unaudited; millions of Canadian dollars)
Earnings	607		1,521		2,664		3,535
Other comprehensive income/(loss), net of tax
Change in unrealized gain/(loss) on cash flow hedges	352		(157)		646		213
Change in unrealized gain/(loss) on net investment
hedges	(386)		129		(253)		222
Other comprehensive income from equity investees	-		24		-		2
Excluded components of fair value hedges	(4)		(1)		(5)		(2)
Reclassification to earnings of loss on cash flow	52		61		109		113
hedges
Reclassification to earnings of pension and other	(3)		6		(5)		11
postretirement benefits (OPEB) amounts
Foreign currency translation adjustments	1,881		(835)		1,173		(1,631)
Other comprehensive income/(loss), net of tax	1,892		(773)		1,665		(1,072)
Comprehensive income	2,499		748		4,329		2,463
Comprehensive income attributable to noncontrolling	(58)		(9)		(71)		(6)
interests
Comprehensive income attributable to controlling	2,441		739		4,258		2,457
interests
Preference share dividends	(145)		(90)		(247)		(182)
Comprehensive income attributable to common	2,296		649		4,011		2,275
shareholders

The accompanying notes are an integral part of these interim consolidated financial statements.

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ENBRIDGE INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

	Three months ended	Six months ended
	June 30,	June 30,
	2022	2021	2022	2021
(unaudited; millions of Canadian dollars, except per share amounts)
Preference shares
Balance at beginning of period	7,010	7,747	7,747	7,747
Redemption of preference shares	(192)	-	(929)	-
Balance at end of period	6,818	7,747	6,818	7,747
Common shares
Balance at beginning of period	64,801	64,772	64,799	64,768
Shares issued on exercise of stock options	12	8	48	12
Share purchases at stated value	(58)	-	(88)	-
Other	-	-	(4)	-
Balance at end of period	64,755	64,780	64,755	64,780
Additional paid-in capital
Balance at beginning of period	316	324	365	277
Stock-based compensation	5	5	18	16
Options exercised	(11)	(5)	(45)	(8)
Change in reciprocal interest	-	-	-	39
Other	(5)	-	(33)	-
Balance at end of period	305	324	305	324
Deficit
Balance at beginning of period	(9,082)	(8,093)	(10,989)	(9,995)
Earnings attributable to controlling interests	595	1,484	2,624	3,476
Preference share dividends	(145)	(90)	(247)	(182)
Common share dividends declared	(1,743)	(1,692)	(1,743)	(1,692)
Dividends paid to reciprocal shareholder	-	2	-	5
Share purchases in excess of stated value	(43)	-	(63)	-
Other	-	1	-	-
Balance at end of period	(10,418)	(8,388)	(10,418)	(8,388)
Accumulated other comprehensive income/(loss) (Note 7)
Balance at beginning of period	(1,308)	(1,675)	(1,096)	(1,401)
Other comprehensive income/(loss) attributable to common shareholders, net	1,846	(745)	1,634	(1,019)
of tax
Balance at end of period	538	(2,420)	538	(2,420)
Reciprocal shareholding
Balance at beginning of period	-	(17)	-	(29)
Change in reciprocal interest	-	-	-	12
Balance at end of period	-	(17)	-	(17)
Total Enbridge Inc. shareholders' equity	61,998	62,026	61,998	62,026
Noncontrolling interests
Balance at beginning of period	2,536	2,930	2,542	2,996
Earnings attributable to noncontrolling interests	12	37	40	59
Other comprehensive income/(loss) attributable to noncontrolling interests, net
of tax
Change in unrealized loss on cash flow hedges	(8)	(3)	(6)	(6)
Foreign currency translation adjustments	54	(25)	37	(47)
	46	(28)	31	(53)
Comprehensive income attributable to noncontrolling interests	58	9	71	6
Distributions	(67)	(77)	(127)	(143)
Contributions	2	6	8	9
Other	10	2	45	2
Balance at end of period	2,539	2,870	2,539	2,870
Total equity	64,537	64,896	64,537	64,896
Dividends paid per common share	0.860	0.835	1.720	1.670

The accompanying notes are an integral part of these interim consolidated financial statements.

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ENBRIDGE INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six months ended
	June 30,
	2022		2021
(unaudited; millions of Canadian dollars)
Operating activities
Earnings	2,664		3,535
Adjustments to reconcile earnings to net cash provided by operating activities:
Depreciation and amortization	2,119		1,861
Deferred income tax expense	469		647
Unrealized derivative fair value (gain)/loss, net (Note 8)	415		(448)
Income from equity investments	(1,001)		(747)
Distributions from equity investments	878		737
Gain on disposition	-		(41)
Other	67		(128)
Changes in operating assets and liabilities	(138)		(363)
Net cash provided by operating activities	5,473		5,053
Investing activities
Capital expenditures	(2,002)		(3,725)
Long-term investments and restricted long-term investments	(388)		(155)
Distributions from equity investments in excess of cumulative earnings	296		246
Additions to intangible assets	(91)		(118)
Proceeds from disposition	-		122
Affiliate loans, net	65		29
Net cash used in investing activities	(2,120)		(3,601)
Financing activities
Net change in short-term borrowings	105		289
Net change in commercial paper and credit facility draws	1,031		739
Debenture and term note issues, net of issue costs	2,642		3,247
Debenture and term note repayments	(1,333)		(1,888)
Contributions from noncontrolling interests	8		9
Distributions to noncontrolling interests	(127)		(143)
Common shares issued	3		3
Common shares repurchased	(151)		-
Preference share dividends	(173)		(182)
Common share dividends	(3,485)		(3,382)
Redemption of preferred shares held by subsidiary	-		(115)
Redemption of preference shares	(1,003)		-
Other	(122)		(40)
Net cash used in financing activities	(2,605)		(1,463)
Effect of translation of foreign denominated cash and cash equivalents and	20		(20)
restricted cash
Net change in cash and cash equivalents and restricted cash	768		(31)
Cash and cash equivalents and restricted cash at beginning of period	320		490
Cash and cash equivalents and restricted cash at end of period	1,088		459

The accompanying notes are an integral part of these interim consolidated financial statements.

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