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Highlights
- A recent Statistics Canada report found that energy prices noted a surge of 25.5 per cent from last year in October.
- Such surges in oil prices, as a result, have reportedly benefited many energy producers in Canada.
- Heavy floods and landslides are presently affecting the supply chain of essentials like fuel and food in the province of British Columbia.
A recent Statistics Canada report found that energy prices noted a surge of 25.5 per cent from last year in October, which was mainly due to rising gasoline prices. Such surges in oil prices, as a result, have benefited many energy producers in Canada.
However, heavy floods and landslides are presently affecting the supply chain of essentials like fuel and food in the province of British Columbia, which authorities have noted may take some time to stabilize.
The S&P/TSX Capped Energy Index, as of Thursday, November 18, was up by roughly 82 per cent this year and by more than 14 per cent on a quarter-to-date (QTD) basis.
Let us explore two TSX-listed energy companies that have reported steady growth amid changing times.
Also read: Cenovus (TSX:CVE) posts $551M Q3 profit, doubles dividend. Buy & hold?
1. Enbridge Inc (TSX: ENB)
Enbridge Inc is known to hold midstream assets to transport hydrocarbons throughout Canada and the United States.
The energy stock, which closed at C$ 50.47 apiece on November 18, spiked by more than five per cent in the last three months. It jumped by nearly 24 per cent year-to-date (YTD) and expanded by roughly 33 per cent over the past year.
The Calgary, Alberta-headquartered energy company recorded adjusted earnings of C$ 1.2 billion in the third quarter of fiscal 2021, which was up from C$ 1 billion in the same quarter a year ago.
Its adjusted EBITDA amounted to C$ 3.3 billion in the latest quarter, compared to C$ 3 billion in Q3 FY2020. Its operating activities, in the latest quarter, generated cash of about C$ 2.2 billion
On the valuation side, Enbridge held a market capitalization of C$ 102 billion and a return on equity (ROE) of 10.29 per cent.
It is set to pay a three-month dividend of C$ 0.835 on December 1.
2. Crescent Point Energy Corp (TSX: CPG)
Stocks of Crescent Point Energy, which closed at C$ 5.83 apiece on November 18, soared by nearly 53 per cent in the last three months.
CPG stock also increased by more than 96 per cent this year and zoomed by nearly 170 per cent in the past 12 months.
Image source: © 2021 Kalkine Media Inc
The independent oil and gas producer reported adjusted funds flow from operations of C$ 393.9 million in Q3 FY2021, which was up from C$ 235.7 million in the same period a year ago.
The development capital expenditures of Crescent Point amounted to C$ 187.1 million in the latest quarter. The oil enterprise’s net debt was cut down by over C$ 180 million in Q3 FY2021.
Also read: 2 hot Canadian EV stocks to buy & hold for next 10 years
Crescent Point posted a market capitalization of C$ 3.3 billion and an ROE of 53.15 per cent on November 18.
Bottom line
The energy sector is known to be among the top contributors to Canada’s economy.
However, investors should bear in mind that changes in factors like oil prices, supply chain, natural disasters, etc can have significant impact on an energy company’s performance.
