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2023 THIRD QUARTER HIGHLIGHTS
https://www.newswire.ca/news-releases/metro-reports-2023-third-quarter-results-856007784.html
Hydro One Ltd. H-T +0.61%increase says second-quarter earnings ticked up four per cent compared to a year ago.In the three months ended June 30, the power utility says net income attributable to common shareholders rose to $265 million from $255 million in the same period a year earlier.Hydro one is reporting second-quarter revenues that inched up by one per cent to $1.86 billion versus $1.84 billion a year earlier.It says diluted earnings increased to 44 cents per share from 42 cents per share, above analyst expectations of level year-over-year diluted earnings, according to financial markets data firm Refinitiv.Hydro One attributed its boost in profits to a hike in 2023 transmission rates and lower asset removal costs due to fewer storm-related replacements, and despite higher operations and maintenance costs.The quarter also saw the company break ground on a transmission line between its switching stations in the municipality of Chatham-Kent and the Lakeshore municipality in southwestern Ontario that looks to supply clean electricity to the agri-food and manufacturing sectors.
Sun Life FinancialSLF-T -0.73%decrease reported a rise in second-quarter profit on Tuesday, helped by its acquisition of U.S. dental benefits provider Dentaquest and strong insurance sales at home.Sunlife has been diversifying its business across the globe and expanded its U.S. footprint with the acquisition of Dentaquest last year. At home, the company is buying Canadian virtual healthcare and wellness platform Dialogue.chief executive officer Kevin Strain said health and protection sales growth were strong in the quarter and its investment in Dialogue would help the Toronto-based company play a larger role in Canada’s health ecosystem, while reducing the strain on traditional health care organizations.The Toronto-based insurance and asset management company said earnings from its group insurance segment surged 51% while individual insurance business rose 23%.Earnings from wealth and asset management segment fell 1% largely due to higher expenses and lower fee-based earnings.The insurer posted underlying net income of C$920 million ($685.54 million), or C$1.57 per share, for the three months ended June 30, compared with C$808 million, or C$1.38 per share, a year earlier.
China’s exports plunged by 14.5% in July compared with a year earlier, adding to pressure on the ruling Communist Party to reverse an economic slump.
Imports tumbled 12.4%, customs data showed Tuesday, in a blow to global exporters that look to China as one of the biggest markets for industrial materials, food and consumer goods.
Exports fell to $281.8 billion as the decline accelerated from June’s 12.4% fall. Imports sank to $201.2 billion, widening from the previous month’s 6.8% contraction.
The country’s global trade surplus narrowed by 20.4% from a record high a year ago to $80.6 billion.
Chinese leaders are trying to shore up business and consumer activity after a rebound following the end of virus controls in December fizzled out earlier than expected.
Economic growth sank to 0.8% in the three months ending in June compared with the previous quarter, down from the January-March period’s 2.2%. That is the equivalent of 3.2% annual growth, which would be among China’s weakest in three decades.
Demand for Chinese exports cooled after the Federal Reserve and central banks in Europe and Asia started raising interest rates last year to cool inflation that was at multi-decade highs.
The export contraction was the biggest since the start of the COVID-19 pandemic in 2020, according to Capital Economics. It said the decline was due mostly to lower prices, while volumes of goods were above pre-pandemic levels.
“We expect exports to decline further over the coming months before bottoming out toward the end of the year,” said Capital Economics in a report. “The near-term outlook for consumer spending in developed economies remains challenging.”
The ruling party has promised measures to support entrepreneurs and to encourage home purchases and consumer spending but hasn’t announced large-scale stimulus spending or tax cuts. Forecasters expect those steps to revive demand for imports but say that will be gradual.
“Domestic demand continues to deteriorate,” said David Chao of Invesco in a report. “Policymakers have pledged further policy support, which could buoy household spending and lead to an improvement in import growth for the coming few months.”
Exports to the United States fell 23% from a year earlier to $42.3 billion while imports of American goods retreated 11.1% to $12 billion. China’s politically sensitive trade surplus with the United States narrowed by 27% to a still-robust $30.3 billion.
China’s imports from Russia, mostly oil and gas, narrowed by just under 0.1% from a year ago to $9.2 billion. Chinese purchases of Russian energy have swelled, helping to offset revenue lost to Western sanctions imposed to punish the Kremlin for its invasion of Ukraine.
China, which is friendly with Moscow but says it is neutral in the war, can buy Russian oil and gas without triggering Western sanctions. The United States and French officials cite evidence China is delivering goods with possible military uses to Russia but haven’t said whether that might trigger penalties against Chinese companies.
Exports to the 27-nation European Union slumped 39.5% from a year earlier to $42.4 billion while imports of European goods were off 44.1% at $23.3 billion. China’s trade surplus with the EU contracted by 32.7% to $19.1 billion.
For the first seven months of the year, Chinese exports were off 5% from the same period in 2022 at just over $1.9 trillion. Imports were down 7.6% at $1.4 trillion.
Second Quarter 2023 Highlights:
Barrick Gold Corp. (GOLD) on Tuesday reported second-quarter net income of $305 million.
The Toronto-based company said it had profit of 17 cents per share. Earnings, adjusted for non-recurring costs, came to 19 cents per share.
The results exceeded Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 17 cents per share.
The gold and copper mining company posted revenue of $2.83 billion in the period.
JP Morgan just forecast $2,000 gold prices by the end of 2023, and $2,175 by the fourth quarter of 2024, as noted by SchiffGold.com. In fact, according to JP Morgan’s executive director of global commodities research, Greg Shearer, “there is even further upside potential for the yellow metal if the US economy falls into a recession. The deeper the recession, the more the Fed will have to cut interest rates, which is more supportive of gold.” That’s all positive news for gold stocks, including Calibre Mining Corp. (TSX:CXB.TO) (OTCQX:CXBMF), Barrick Gold Corporation (NYSE:GOLD) (TSX:ABX.TO), Newmont Corporation (NYSE:NEM) (TSX:NGT.TO), Franco Nevada Corp. (NYSE:FNV) (TSX:FNV.TO), and Royal Gold Inc. (NASDAQ:RGLD).
In addition, “according to the 2023 Central Bank Gold Reserve Survey released by the World Gold Council, 24% of central banks plan to add more gold to their reserves in the next 12 months. Seventy-one percent of central banks surveyed believe the overall level of global reserves will increase in the next 12 months. That was a 10-point increase over last year.”
Telus Corp. (TU) on Friday reported second-quarter profit of $148.9 million.
The Vancouver, British Columbia-based company said it had profit of 10 cents per share. Earnings, adjusted for non-recurring costs, were 14 cents per share.
The results fell short of Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 18 cents per share.
The telecommunications company posted revenue of $3.68 billion in the period, which also fell short of Street forecasts. Five analysts surveyed by Zacks expected $3.72 billion.
George Weston Ltd. (WNGRF) on Tuesday reported profit of $370.8 million in its second quarter.
On a per-share basis, the Toronto-based company said it had net income of $2.64. Earnings, adjusted for non-recurring gains, came to $2 per share.
The baked goods maker and parent of the conglomerate Loblaw posted revenue of $10.34 billion in the period.
