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Superior Plus Corp T.SPB

Alternate Symbol(s):  SUUIF

Superior Plus Corp. is a Canada-based company, which is a distributor and marketer of propane and distillates and related products and services. Through its primary businesses, propane distribution and CNG, RNG and hydrogen distribution, it delivers clean burning fuels to residential, commercial, utility, agricultural and industrial customers. Its segments include U.S. Retail Propane Distribution (U.S. Propane), Canadian Retail Propane Distribution (Canadian Propane), North American Wholesale Propane Distribution (Wholesale Propane), and Certarus Ltd. The U.S. Propane segment distributes propane gas and liquid fuels primarily in the Eastern United States, as well as the Midwest and California to residential and commercial customers. The Canadian Propane segment includes the Canadian retail propane distribution business and the wholesale natural gas liquid marketing businesses. The Wholesale Propane segment is a distributor and marketer of propane gas and other natural gas liquids.


TSX:SPB - Post by User

Comment by Schussing56on Feb 25, 2024 9:08pm
166 Views
Post# 35898290

RE:RE:RE:New to this stock

RE:RE:RE:New to this stockSuperior has one of the highest payout ratios on the TSX so, a lot of their free cash goes to shareholders. In addition, Brookfield Asset Management (BAM) invested $350 million in Superior preferred shares which pays them a monthly 7.25% dividend. Also, BAM can convert the preferred shares to common stock at any time at an exchange rate of $11.63 per share. I think, a lot of Superior's profits are going to dividend payments. The BAM investment was set up by Luc Desjardins and it was supposed to be used to expand the propane business. It was working well. Ebitda was increasing year-over-year but then the new management bet $1.1 billion on Certarus, a hydrogen renewable energy business which Superior has no experience with. Currently, an investment in Superior is an investment in the future of hydrogen. A bit risky I would say, GLTA! 
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