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Summary
- Shares of Enbridge Inc shot up over 10 per cent on Monday following the news of Pfizer’s successful COVID-19 vaccine trails.
- Suncor Energy stocks also jumped nearly 25 per cent during Monday’s intraday trading.
- Enbridge released its third quarter results for 2020 on Friday, November 6, reporting noticeable YoY increase in GAAP earnings.
Energy companies saw a bright day after a long, pandemic-inflicted gloomy season on Monday after pharmaceutical firm Pfizer announced the news of its COVID-19 vaccine candidate being 90 per cent effective. The hope of a potential vaccine saw shares of Suncor Energy (TSX:SU) and Enbridge Inc (TSX:ENB) boost significantly this week.
Crude oil demand deficit amid the coronavirus pandemic this year saw oil and gas companies take quite a hit. Big energy companies in Canada and around the world resorted to cost control measures such as asset sales and workforce reductions to accommodate the financial pinch. But the setback nonetheless reflected in their production and financial statements.
In the light of the recent jump in their stock prices, let’s take a closer look at the profiles of Suncor Energy and Enbridge Inc.
Enbridge Inc (TSX:ENB)
Current Stock Price: C$ 39.58
Shares of Canadian energy distributer Enbridge Inc have been trending heavily on the TSX for its increased trading movement and high dividend yield. The stock currently has an average share trading volume of 14.5 million for the last 10 days and of 8.99 million in the last one month. Enbridge’s 52-week high stands at 57.32.
The company made headlines earlier in November after it posted its third quarter financial results for 2020.
ENBRIGDE INC STOCK PERFORMANCE
Enbridge Inc saw its shares plummet sharply around March when the markets caved in amid the onset of the coronavirus pandemic. While the scrips made some recovery since their March lows, they are far from their pre-COVID levels in February.
Enbridge Inc’s YTD chart of stock performance (Source: EODHD/Others/Thompson Reuters)
In the last six months, Enbridge stocks slumped by over 14 per cent. They are also down about 23 per cent this year.
Since the Pfizer announcement, the pipeline company’s shares shot up over 10 per cent in less than a week’s time.
ENBRIGDE INC Q3 2020 FINANCIAL RESULTS
Enbridge Inc recorded GAAP earnings of C$ 990 million in the third quarter ending 30 September 2020, up from the GAAP earnings of C$ 949 million in Q3 2019. Its adjusted EBITDA, on the other hand, registered a year-over-year drop at C$ 2,997 million in Q3 2020, down from C$ 3,108 million in Q3 2019.
The Calgary-based company generated cash worth C$ 2,302 million from operating activities in the latest quarter, a drop from that of C$ 2,735 million in 2019’s third quarter.
Enbridge, in the third quarter report, also announced its emissions reduction targets, which included a goal of 35 per cent energy intensity reduction by year 2030 and a 35 per cent net-zero reduction by 2050.
Enbridge’s quarterly dividend of C$ 0.81 currently has a dividend yield of 8.172 per cent, as per the data available on the TMX Group.
Suncor Energy Inc (TSX:SU)
Current Stock Price: C$ 39.58
Shares of Canadian integrated energy company Suncor Energy Inc skyrocketed on Monday, November 9, during intraday trading hours after the news of Pfizer’s trials broke.
As an oil and gas manufacturing company, Suncor Energy saw some dark days of financial and operational crisis amid the pandemic this year. The scrips are currently rallying on the TSX, with a 10-day average share trading volume of 11.6 million and a 50-day average share trading volume of 10.2 million.
SUNCOR ENERGY INC STOCK PERFORMANCE
Suncor Energy stocks plunged about 55 per cent this year. After sinking sharply amid the March lows, the scrips dropped almost 20 per cent in the last six months and nearly 16 per cent in the last three months.
Suncor Energy Inc’s YTD chart of stock performance (Source: EODHD/Others/Thompson Reuters)
However, Suncor shares jumped 27 per cent in November so far, with a surge of nearly 25 per cent on Monday following the Pfizer trails news.
SUNCOR ENERGY INC Q3 2020 FINANCIAL RESULTS
Suncor Energy generated funds worth C$ 1.16 billion in the third quarter ending 30 September 2020, significantly up from that of C$ 488 million Q2 2020. However, the number was down compared to the funds of C$ 2.6 billion from operations in Q3 2019.
The Calagary-based company’s cash flow from operating activities stood at C$ 1.24 billion in the third quarter of 2020, down from that of C$ 3.13 billion in the same quarter of 2019.
Suncor Energy also incurred an operating loss of C$ 302 million in Q3 2020, but it was comparatively lower from the operating loss of C$ 1.48 billion in Q2 2020.
The company said that it continued to cut down on its operating and capital costs in the third quarter of 2020 and is “on track” to meet its C$ 1 billion-mark of operating cost reduction. In the beginning of October, Suncor Energy announced plans to cut down its workforce by 10 to 15 per cent.
Suncor Energy pays a quarterly dividend of C$ 0.21, which currently yields 4.405 per cent, as per the TMX.
