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Summary
- The TSX Capped Energy Index’s one-year return has declined by more than 30 per cent.
- Despite the decline, stocks of Enbridge and Cenovus continue to be among the most active stocks on the TSX.
- In the last three months, Enbridge and Cenovus stock have grown by over 17 per cent and 8 per cent, respectively.
The S&P/TSX Capped Energy Index’s one-year return has declined by 32.63 per cent, reflecting a downfall in investors’ sentiment as the pandemic continues.
But the index shows a recovery, gaining 5.44 per cent in the last three months. Out of the 14 stock that constitutes the energy index, two stocks in particular i.e. Enbridge Inc (TSX:ENB) and Cenovus Energy Inc (TSX:CVE) were among the most active stocks on the Toronto Stock Exchange in the last 10 days. Over 10.28 million Enbridge shares were traded on an average while Cenovus saw nearly 7 million stocks exchanging hands.
Let us take a closer look at each of these stocks:
Enbridge Inc. (TSX:ENB)
Enbridge stock plunged by over 23 per cent in the last one year and currently trading at C$ 42.96.
This downfall of this energy generation, distribution and transportation company can be attributed to shutdowns due to the coronavirus-induced situation.
However, in the last three months, the large-cap stock grew by 17 per cent, indicating a renewed confidence among the investors.
In the third quarter (Q3) 2020 financial results (period ended September 30), the company’s adjusted EBITDA dropped to C$ 2.9 billion from C$ 3.1 billion a year ago.
However, the GAAP earnings improved, up to C$990 million from C$ 949 million a year ago.
Enbridge distributed quarterly dividend of C$ 0.835 per share. The stock reflects a five-year dividend growth of 11.37 per cent.
The company’s current market capitalization is over C$ 87.1 billion.
@Kalkine Image 2021
Cenovus Energy Inc. (TSX:CVE)
Stocks of Cenovus Energy, the integrated energy company operating in Canada and Asia Pacific, plummeted by 36 per cent in the last one-year period.
After recording this negative growth, the energy giant seems to be on a rebound, advancing by over 60 per cent in the last three months. It is currently trading at C$7.76 apiece.
The company is among the top 50 most actively traded stocks across in the Canadian stock markets.
Cenovus delivered strong operational performance in the third quarter, increasing its crude oil production and overall sales as a result of higher commodity prices. The company achieved oil sands production of almost 3,86,000 barrels per day (bbls/d) in Q3.
The company recorded net loss of C$194 million in Q3 2020, down from net earnings of C$187 million same quarter a year ago. Its net debt narrowed to C$ 7.5 billion from $8.2 billion a quarter ago. The cash from operating activities in Q3 2020 stood at C$ 732 million, down from C$ 834 million in the previous quarter.
