Author: Consultant

Cenovus Energy Inc. reported a third-quarter profit of $1.86 billion, up from $1.61 billion in the same quarter last year.

The company says the profit amounted to 97 cents per diluted share, up from 81 cents per diluted share a year earlier.

Revenue totalled $14.58 billion, down from $17.47 billion in the same quarter last year.

Total upstream production for the quarter amounted to 797,000 barrels of oil equivalent per day, up from 777,900 a year earlier.

Total downstream throughput totalled 664,300 barrels per day compared with 533,500 a year ago.

Cenovus also announced the appointment of former Shell Canada president and country chair Michael Crothers and former Husky Energy executive James Girgulis to the company’s board of directors, effective immediately.

This report by The Canadian Press was first published Nov. 2, 2023.

Calgary, Alberta–(Newsfile Corp. – November 2, 2023) – Commenting on the Company’s (TSX: CNQ) (NYSE: CNQ) third quarter 2023 results, Tim McKay, President, stated, “Our quarterly results demonstrate how our effective and efficient operations, combined with our diverse product mix generates significant free cash flow, resulting in strong shareholder returns through our sustainable and growing dividend and significant share repurchases

https://www.barchart.com/story/news/21649407/canadian-natural-resources-limited-announces-2023-third-quarter-results

HIGHLIGHTS

• Third quarter cash flow⁽¹⁾⁽²⁾ of $878.5 million ($2.55 per diluted share⁽³⁾).
• Generated Q3 free cash flow⁽⁴⁾ (“FCF“) of $332.3 million ($0.96 per diluted share) enabling the Company to declare a special dividend of $1.00 per common share paid on November 1, 2023 to holders of record on October 24, 2023. Tourmaline has distributed total dividends of $6.52 per share (inclusive of this November 1, 2023 special dividend) since December 1, 2022, an implied 9% trailing yield⁽⁵⁾.
• Full-year 2023 free cash flow forecast of $1.9 billion⁽⁶⁾ (2022 free cash flow – $3.2 billion).
• September 30, 2023 net debt⁽⁷⁾ of $879.8 million or 0.3 times Q3 2023 annualized cash flow of $3.5 billion.
• Tourmaline Q3 2023 net earnings of $274.7 million ($0.80 per diluted share).
• In October 2023, the Company entered into an agreement to acquire all of the shares of Bonavista Energy Corporation (“Bonavista”) for $1.45 billion, consisting of $725 million in Tourmaline common shares and $725 million of cash, less Bonavista’s net debt⁽⁸⁾ at closing. The closing of the transaction is expected to occur in the second half of November 2023, subject to customary regulatory and stock exchange approvals.

https://www.newswire.ca/news-releases/tourmaline-delivers-strong-free-cash-flow-in-the-third-quarter-updates-five-year-ep-plan-with-significantly-increased-free-cash-flow-859689695.html

BCE Inc. reported its third-quarter profit fell compared with a year ago as its revenue edged higher.

The parent company of Bell Canada says it earned a profit attributable to common shareholders of $640 million or 70 cents per share for the quarter ended Sept. 30.

The result compared with a profit of $715 million or 78 cents per share a year earlier.

BCE reported operating revenue totalled $6.08 billion, up from $6.02 billion in the same quarter last year.

On an adjusted basis, BCE says it earned 81 cents per share in its latest quarter, down from 88 cents per share a year ago.

The average analyst estimate had been for an adjusted profit of 81 cents per share, based on estimates compiled by financial markets data firm Refinitiv.

This report by The Canadian Press was first published Nov. 2, 2023.

Fuel retailer Parkland Corp. says its third-quarter earnings more than doubled in 2023 thanks to favourable market conditions and the company’s ongoing efforts to optimize its Burnaby refinery.

The Calgary-based company reported net earnings of $230 million, or $1.31 per share, for the three months ended Sept. 30, up from $105 million in the same period of 2022.

On an adjusted basis, Parkland earned $231 million, nearly five times its third-quarter 2022 adjusted earnings.

The company reported sales and operating revenue of $8.9 billion, down from $9.4 billion in the third quarter of last year.

Parkland’s Burnaby refinery delivered adjusted earnings of $188 million, up more than 39 per cent from the prior year’s quarter in part due to record refinery utilization and record co-processing volumes.

Parkland says it now expects to exceed its previously announced 2023 adjusted earnings guidance range of $1.8 to $1.85 billion, thanks to favourable refinery margins and strong utilization, as well as strength in its international business.

This report by The Canadian Press was first published Nov. 1, 2023

IGM Highlights

• Net earnings of $209.8 million or 88 cents per share compared to $216.1 million or 91 cents per share in 2022.
• Assets under management and advisement of $253.4 billion, down 3.0% from the prior quarter and up 6.4% from the third quarter of 2022. 
• IGM Financial’s assets under management and advisement including Strategic Investments were $400.0 billion as at September 30, 2023, compared with $402.8 billion at June 30, 2023 and $302.1 billion at September 30, 2022. This is a new measure introduced in the second quarter and reflects the importance of these high growth investments and their contribution to IGM’s value.
• Net outflows were $549 million compared to net outflows of $342 million in 2022.  

https://www.newswire.ca/news-releases/igm-financial-reports-third-quarter-earnings-816481127.html

North American main stock indexes rallied on Thursday on hopes that the U.S. Federal Reserve had reached the end of its tightening campaign, while a raft of upbeat corporate updates added to the bullish mood in both Canada and the U.S. If the gains hold, the Canadian benchmark stock index will have achieved its biggest daily gain in a year.

The Fed held interest rates steady on Wednesday as expected, and while Chair Jerome Powell left the door open to further tightening he also acknowledged the impact of a recent surge in bond yields on the economy.

The comments, which were perceived to be dovish, sent U.S. Treasury yields tumbling, with the benchmark 10-year yield hitting near three-week lows.

“Our base case is that the Fed is done, but that they will take time to cut rates,” said Raphael Olszyna-Marzys, international economist at J Safra Sarasin. “There’s a decent possibility that they will have to do more (hikes), but this is not how the market is seeing it for the moment.”

All three major U.S. stock indexes touched their highest level since Oct. 19.

Mega-cap growth stocks including Microsoft, Nvidia, Alphabet and Tesla rose between 0.2% and 3.9%.

All 11 major S&P 500 sectors were trading higher, with real estate and consumer discretionary leading gains.

Traders pared back the risk of a December hike to about 20% and a January move to 25%, according to the CME Group’s FedWatch tool. They have also priced in a 70% chance that the tightening is over.

Canada’s main stock index hit a two-week high, supported by upbeat earnings from e-commerce firms Shopify and Lightspeed along with jet maker Bombardier, while higher commodity prices also lifted sentiment.

At 10:13 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 308.55 points, or 1.62%, at 19,387.55.

The information technology index led sectoral gains, jumping 5.4% on upbeat earnings from Shopify and Lightspeed and was set to mark its biggest gain in nearly a year.

Shopify led the index, adding 19.7% after returning to profit in the third quarter and posting quarterly revenue above market expectations.

Software provider Lightspeed Commerce advanced 14.6% after the firm raised its annual revenue forecast.

Bombardier also reported third-quarter results that beat analysts’ estimates, helped by robust demand for pricier business jets and strength in its aftermarket business.

The jet maker moved 7.8% higher while the industrial index was up 1.1%.

The energy sector climbed 0.6% on higher oil prices as risk appetite returned to financial markets after the U.S. Federal Reserve kept benchmark interest rates on hold.

The materials sector, which includes precious and base metals miners and fertilizer companies, also rose 0.1% as prices of most non-ferrous metals, including copper and gold, gained on a pullback in the U.S. dollar and Treasury yields.

Meanwhile, First Quantum Minerals shares snapped a three-day losing streak to climb 3.8% higher amid uncertainty over the future of its key Panama copper mine.

On the U.S. earnings front, Qualcomm climbed 5.9% after the chip designer forecast first-quarter sales and profit above Wall Street estimates as a slowdown in smartphone sales eases.

PayPal advanced 3.9% as the payments giant raised its full-year adjusted profit forecast.

Starbucks jumped 9.4% after fourth-quarter results beat estimates, while data analytics firm Palantir Technologies rose 18.8% on forecasting quarterly revenue above estimates.

Moderna dropped 10.5% after lowering its 2023 COVID-19 vaccine sales forecast. Drugmaker Eli Lilly jumped 6.6% after beating quarterly sales estimates.

Apple’s shares advanced 1.2% ahead of its quarterly numbers due after markets close on Thursday.

At 9:38 a.m. ET, the Dow Jones Industrial Average was up 307.02 points, or 0.92%, at 33,581.60, the S&P 500 was up 51.87 points, or 1.22%, at 4,289.73, and the Nasdaq Composite was up 172.71 points, or 1.32%, at 13,234.18.

The Cboe Volatility index, also known as Wall Street’s fear gauge, touched a three-week low.

U.S. equities have kicked off November on a brighter note following a bruising October marred by fears of higher-for-longer interest rates and geopolitical tensions.

Meanwhile, data showed the number of Americans filing new claims for unemployment benefits increased moderately last week as the labor market continues to show few signs of a significant slowdown.

The main data point of the week will be the October non-farm payrolls report on Friday, which will offer more clarity on the state of the labor market.

Advancing issues outnumbered decliners by a 8.67-to-1 ratio on the NYSE and by a 4.50-to-1 ratio on the Nasdaq.

The S&P index recorded five new 52-week highs and six new lows, while the Nasdaq recorded 19 new highs and 47 new lows.

Reuters, Globe staff

Thomson Reuters Corp.TRI-T +2.02%increaseTRI-T +2.02%increase reported higher third-quarter revenue and kept its key financial targets for the year steady as the information and software provider prepares to roll out new artificial-intelligence tools in key products.

Revenue of US$1.59-billion increased 1 per cent in the quarter that ended Sept. 30, compared with a year earlier.

After accounting for lost revenue from several smaller asset sales over the past year, revenue was up 6 per cent, which was roughly in line with analysts’ expectations.

Major investments that Thomson Reuters are making to add new generative artificial-intelligence (AI) technology to its flagship products for clients are on the cusp of coming to market. An AI-powered research assistant will launch in the company’s Westlaw Precision product on Nov. 15, with further additions to other products expected in the coming months.

Chief executive officer Steve Hasker said generative AI will bring “seismic industry changes” to the sectors Thomson Reuters serves, and that the benefits to its customers from new tools based on the technology “really starts this quarter.” Thomson Reuters has said it will invest more than US$100-million annually in generative AI, but chief financial officer Mike Eastwood described that number as “the starting point,” and said the company is ready to increase it as necessary.

“We’re proceeding at breakneck speed in terms of integrating generative AI into our products,” Mr. Hasker said in an interview on Wednesday. Thomson Reuters expects to reap some new revenue in 2024, and predicts that will ramp up over a few years starting in 2025 as products are updated and contracts with clients renew.

The company’s overall revenue has been resilient in a fraught economic environment, bolstered by multiyear contracts that help guard against sudden fluctuations. Some corporate clients have seen discretionary spending budgets tighten and have been slower to sign up, while the Reuters Events business and digital advertising revenue from Reuters News have come under pressure.

The company’s largest division, which serves legal professionals, has seen some slowdown in work on capital markets transactions, offset by an uptick in litigation. Revenue from legal clients rose 2 per cent to US$688-million in the quarter, and was up 6 per cent excluding the impact of asset sales.

“Our legal business is continuing to power through,” Mr. Hasker said.

Revenue from corporate clients rose 4 per cent to US$391-million, while tax and accounting revenue increased 8 per cent to US$203-million.

Thomson Reuters is expecting a similar business environment marked by continued economic uncertainty next year, against the likely backdrop of two wars – Russia’s invasion of Ukraine, and Israel’s war with Hamas – as well as stubbornly high interest rates and a U.S. presidential election campaign.

“I think it would be foolhardy for us or anyone else to bank on a quick rebound,” Mr. Hasker told analysts on a conference call.

In the third quarter, Thomson Reuters reported profit of US$367-million or 80 US cents a share compared with US$228-million or 47 US cents in the same quarter last year.

After adjusting for one-time items, Thomson Reuters earned 82 US cents a share, well ahead of analysts’ expectations.

Woodbridge Co. Ltd., the Thomson family holding company and controlling shareholder of Thomson Reuters, also owns The Globe and Mail.

After Thomson Reuters sold US$1.5-billion of its stake in the London Stock Exchange Group in September, the company continues to have robust cash reserves, and announced a plan to buy back up to US$1-billion of its shares over the coming year. Thomson Reuters will also use some of its cash to pay off a maturing US$600-million bond.

Thomson Reuters also has capital available to make acquisitions and is looking primarily for smaller deals to bolster its existing business lines. “We don’t need or particularly want larger deals,” Mr. Hasker told analysts.

Nutrien NTR-T +0.78%increase fell short of analysts’ estimates for third-quarter profit on Wednesday, as lower potash prices weighed on the world’s biggest fertilizer producer.

Potash prices have been falling after shipments from Belarus and Russia resumed. These exports had been significantly restricted last year following Western sanctions imposed on Russia in response to its invasion of Ukraine.

Demand for fertilizers was also weak during much of the year, analysts have said, as farmers waited for prices to settle down.

Potash prices averaged $250 per tonne during the reported quarter, the company said, compared with $633 per tonne a year earlier.

The company’s U.S.-listed shares fell 3% after the bell.

Nutrien said potash sales volumes, however, climbed 23% on strong sales in North America.

Fertilizer inventories in the U.S. had been running low which should result in relatively robust demand, BofA Global Research analyst Steve Byrne had said ahead of the earnings.

On an adjusted basis, Nutrien reported earnings of 35 cents per share for the three months ended Sept. 30, compared with the average analyst estimate of 64 cents, according to LSEG data.

Nutrien, the top U.S. agricultural retailer, also narrowed its adjusted earnings forecast for 2023 to a range of $4.15 to $5.00 per share, compared with a range of $3.85 and $5.60 earlier.

The company forecast fourth-quarter fertilizer demand would be up 5% to 10% year-on-year.

Nutrien added it was lowering its nitrogen sales volume forecast due to the unplanned outages in the third quarter and pull-forward of a planned maintenance outage at its Borger site in the current quarter.