earnings Nothing bad here; much very good.
Could Tony Bennett be right " The best is yet to come."
- Shawcor’s businesses serving infrastructure & industrial end markets represented 47% of total revenue during the third quarter of 2022, compared to 44% in the third quarter of 2021;
- Composite Systems segment revenue increased by 43%, to $148 million compared to $103 million in the prior year’s quarter;
- Automotive and Industrial segment revenue increased by 14% to $81 million compared to $71 million in the prior year’s quarter;
- Pipeline and Pipe Services segment revenue decreased by 9% to $107 million compared to $118 million in the prior year’s quarter;
The Pipeline and Pipe Services is the only down point but this is a lagging issue ( see the quote , 2 paragraphs down)
Shawcor also completed several important steps in our portfolio optimization strategy. With net debt ratios now below targeted levels ( now 1.46 X,EBITDA before a $15 million prepayment after quarter end) a shareholder returns program initiated through our recently launched NCIB ($2 million of shares bought for an average of $8.13, well below current price) , and the capacity available to pursue high return, organic and inorganic growth opportunities, we believe Shawcor is very well positioned to accelerate value creation for all stakeholders over the coming years.”
"With offshore pipe coating activity rising quickly, the Company’s Adjusted EBITDA
1 in the final quarter of 2022 is expected to be the highest of the year, and we anticipate delivering very robust Adjusted EBITDA
1 growth in 2023 from the core businesses, including a strong contribution from the Pipeline and Pipe Services Segment with a significant second-half contribution from the SGP project.”
"we believe Shawcor is very well positioned to accelerate value creation for all stakeholders over the coming years.”
Dividend reinstatement is a possibility IMO