RE:RE:Debt still over $1BnQuarter was a bit of a yawn which is maybe not a terrible thing? A yawn in that there was nothing startling. A Loooong time ago halifax borrowed Swiss francs and German marks to build the "new bridge" which is now 50 years old. They did it because the interest rate was a lot lower than $cdn so they could keep the toll charge lower. Very popular. Until it was time to refinance "the nut" . The crash in $cdn vs Swiss and German was so huge, the bridge commission owed more than double the cost of building the friggin thing. The lesson here is if you borrow in currency A, you need to either have revenue and profit in currency A, or you need to hedge the currency. The hedge cost will always wipe out the short term coupon differential. That's how international finance works. For BTE, they have large assets in the USA that in theory went up in value enough to cover the change in debt, plus they have substantial $USD revenue. Accounting can be misleading if you get lost in the detail so if you don't fully get it, don't bother. It's reflected in the stock price. The debts are "marked to market" quarterly because they report in $cdn but the debt is borrowed/owed in $USD so you report as if you had to pay it all off as at quarter end. The assets are recorded in $CDN and the "mark to market" happens, at most, annually, and only if it's materially different. The debt is a very large % in $USD. The USA assets are a smaller percentage of total assets. So absolute vs relative. Bottom line is don't sweat it, and yeah the currency will swing back over 75.
masfortuna wrote: Leewardcape wrote: Does this matter? A poster I admire ( but disagree with) " masfotuna" predictied 992 million.... thoughts?
Hi Lee! So based on what I read, they did allocate some cash to servicing the debt BUT with the higer US dollar it basically paid off that component giving us a flat number. It also appears that they used their cash on buybacks and capex (which was higher due to inflation). They say they will exit 2023 under 1 billion and so far they have done what they said they would and they are sticking to their timeline of 2024 to reach that 400 million plateau. So the short answer is "NO" it doesn't really matter as long as oil doesn't c%$p the bed.
mas