TSX:CUS.DB.D - Post by User
Post by
2Clubson Mar 13, 2014 10:37pm
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Post# 22321261
NATO is key to Profitability
NATO is key to ProfitabilityThey indicated in the preamble that they averaged 16,200 bbls/day in 4Q2013 and from Revenue I calculated (hopefully correctly) that they get $4.00 to $4.60 per barrel on Revenue.. I think they have the demand from Canexus,Devon,& Meg alone to get to 100000 Barrels per day but can they achieve that by say 4Q?. I suspect they need to get to at least 70000 barrels per day to get economy of scale but the planned shut down or slowdown mid year will make it tough to achieve. I have heard they are sized to load more than 5 tank cars simultaneiusly per hour so maybe at least a 70 car unit train per day is achievable in near term.. If they can achieve meaniful revenue of 40 M per qtr.
Lets hope the analysts ask some meanigful questions about expected capacity, revenue per barrel, and how the Bruderhein terminal is sized to achieve scale. Usually they alway ask those general pompous know nothing questions like --Hey Gary could you add a little bit of colour on your expectations of------
I did not see a Balance Sheet but suppose that will be in the MD& A on SEDAR but is not there tonite.
Hope they suspend the Dividend until they achieve 100K BOD on NATO. The Chemical business ,as
always ,will take care of itself. Can be a great business!
2clubs