RE:RE:RE:RE:RE:RE:Dividend Q-2 vs. Q-3 Thanks Gabriel.
A few key points :
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Yes. So, in terms of the agreements we've reached as Jean-Louis referred to in Q2 and two in Q3 the positive outcome from those agreements is it deals with settling, all the outstanding claims and compensation on a number of items where to some extent cost has already been incurred. And so the compensation, we're now receiving is positive from a cash flow perspective. So, you saw some of that in Q3, with the $100 million improvement in working capital, in what is usually a seasonally -- a seasonal quarter that draws on working capital. Some of that will also be in Q4, and some of it in the first half of 2024. Based on the various agreements, there's some upfront payments and then some attached to milestones along the way. But they effectively compensate the working capital that's built upon the balance sheet for a period of time, and will be cash flow positive over the next six to nine months. (David Smales)
-I mean I don't know a lot of companies with the structure of Aecon that can deliver 12% EBITDA. It just means that the large majority of our business is very strong and it is very strong in a world where there is less and less contractors. (Jean-Louis Servranckx)
-Jacob, just one other the point of reference going back to the part of the question on working off that backlog. By the middle of next year, we expect that backlog number to be roughly half of where it is now. So that kind of gives you a sense of the work off of that over the next three quarters. (David Smales)
-We've been very consistent around our dividend program. As we've talked about, we see significant growth opportunities both organic and through M&A particularly focused on the utilities business. So that's the focus right now from a capital perspective.
Obviously the disconnect to highlight -- in your initial question around the valuation of the dispositions that we've done this year and where the share price is trading.
We feel the best way to highlight future value is to continue to execute on the balance of the business, continue to highlight the fact that the underlying business is generating $375 million of EBITDA on a trailing 12-month basis and get these legacy projects behind us.
I think once we've done all that then we would hope that that would be reflected in valuation. If it's not then, obviously, we will look at share buybacks or anything else that made sense. But there is some strategic and immediate uses of capital that we're more focused on right now. (David smales on a question about share buyback).
-2022. It's also given by the fact that our backlog that was in 2018 almost 70% fixed price is now around 47% fixed price. So, this gives predictability.
I'm asking you to look at the new Aecon that is emerging. (Jean-Louis Servranckx)