OTCPK:ICPVF - Post by User
Post by
downwithdotcom1on Sep 23, 2020 10:00am
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Post# 31603415
analyst commentary..maintain HOLD
analyst commentary..maintain HOLD"Inter Pipeline announced a surprise sale of a major portion of its European bulk liquids storage business for proceeds of C$715MM," the investment bank said in a note. "The divestiture includes ~2/3rd of 2019 EBITDA (~C$70MM) and is expected to close in Q4'20 with immaterial tax implications. On 2019 results, with average utilization of ~87%, the multiple comes in at 10.3x EV/EBITDA. Looking ahead, on elevated 2020 utilization metrics the multiple screens lower at TPHe 8.6x, roughly in-line with what the company purchased the NuStar assets for in 2018 (8.9x EBITDA). We thinkAfter the monetization, we see leverage tracking down from 2021e 7.0x to 6.7x D/EBITDA. A step in the right direction, but we expect other transactions (such as securing a partner) will be necessary to further de-risk the PDH/PP project given a weak commodity pricing outlook ... Maintain Hold.
don't kill the messenger-dwdc