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Small cap results digest: MEG Energy (T.MEG) riding high, CNOOC (NYSE:CEO) wears a smile, while Teck

Gaalen Engen Gaalen Engen, .
0 Comments| October 24, 2013

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CNOOC (NYSE:CEO, StockForum) reveals key details of third quarter results with total net production growing 17.8% year over year to 103.4 million barrels. There were five new discoveries during the quarter combined with 15 successful appraisal wells. Unaudited oil and gas sales revenue totaled US$5.614 billion and capital expenditures were approximately US$2.9 billion.

MEG Energy's (T.MEG, StockForum) third quarter results were meteoric with production increasing 140% to 34,246 barrels per day (bpd). Production year-to-date jumped 20% from last year, making quarterly cash flow from operations a record-breaking at $144.5 million. Bill McCaffrey, president and CEO confidently stated, “MEG's third quarter performance reinforces our strategy and is a good illustration of the standard that we are working toward - steadily growing production volumes combined with attaining the best prices for our product.”

Teck Resources' (T.TCK.A, StockForum) third quarter results suffer with adjusted profit falling 41% to $252 million or $0.44 per share. Regardless of the clearly disappointing report, Teck president and CEO, Don Lindsay was optimistic with a plan, “We are pleased with our operating performance this quarter. Our steelmaking coal sales of 7.6 million tonnes set a quarterly record and demand from customers is strong. However, the current price for steelmaking coal remains below what we believe is required to sustain adequate production in the industry in the long term. With the current market conditions, our near term efforts are focusing on our $330 million cost reduction program, reducing our sustaining capital spending and reviewing the timing of our various development projects.”

Potash Corporation of Saskatchewan's (T.POT, StockForum) third quarter results revealed a 45% drop in earnings from last third quarter to $356 million or $0.41 per share. The financial pummeling is attributed to weaker nutrient prices and lower potash sales volumes. Gross quarter margin totals also took a punch in the breadbasket falling some 48% from 2012 to $484 million. PotashCorp president and CEO, Bill Doyle summed up, “The most recent quarter can best be characterized as a predictable response to an unpredicted event. As we have seen in the past, fertilizer customers faced with uncertainty act with extreme caution. This was the case during the third quarter, particularly in offshore potash markets, where significant purchases were delayed as Russian producer pronouncements left buyers waiting in anticipation of weaker prices. While this volatility does not change the long-term underlying fundamentals of fertilizer demand, it did significantly slow market activity and our ability to deliver the results we expected.”

Cenovus Energy's (T.CVE, StockForum) third quarter results show a 63% increase in oil production at Christina Lake and a 40% jump in oil production operating cash to the tune of $915 million. Refining operating cash flow fell to $133 million – a 75% drop, affecting total cash flow by a negative 17% off of $1+ billion in 2012. Company president and CEO, Brian Ferguson, characterized Cenovus' third quarter this way, “Stronger realized crude prices and higher oil production led to a solid increase in operating cash flow from our oil assets in the third quarter. That helped offset most of the impact from a significant drop in market crack spreads and higher feedstock costs which led to a large year-over-year decrease in operating cash flow from our refining assets.”

Precision Drilling (T.PD, StockForum) opens books on third quarter and shows shareholders a 1% improvement over 2012 in quarterly revenue with $488 million. Net earnings for the quarter took a bit of a blow arriving 26% below 2012 and adjusted EBITDA came in 9% under at $138 million. Kevin Neveu, president and CEO, explained the company's less-than-stellar performance, “Precision's third quarter results reflect overall softness in customer demand and weak demand for Canadian completion and production services. Additionally a non-recurring vendor issue and a difficult turnkey project weighed negatively on the quarter. Precision continues to exercise capital discipline by linking near term capital expenditures with industry activity and as such we are reducing our 2013 planned capital expenditures by $45 million.”

Progressive Waste Solutions (T.BIN, StockForum) didn't waste any time to announce third quarter results with consolidated revenues bumping up 6.9% to $520.7 million despite weaker foreign currency exchange compared to 2012. This positive news was matched by a 3.3% increase in consolidated organic revenue – attributed to higher core price and volume. Joseph Quarin, Progressive Waste Solutions' president and CEO, put the report into context, “In the third quarter, we achieved our strongest consolidated organic revenue performance in the past five years...We continued to experience notably higher industrial collection volumes, which increased 7.0%, and we saw the results of our strategic sales programs contribute to the revenue line as well. Our revenue gains were offset by higher than anticipated costs relative to revenue in the quarter, including higher than normal expenses in the area of insurance and claims. We also experienced higher operating costs relative to revenue that were largely associated with the increase in industrial roll-off demand and delayed contributions from two new material recovery facilities, but that are also reflective of our focus on asset utilization and return on invested capital.”

Rogers Communications (T.RCI.A, StockForum) grew a little in the third quarter and put 2% on revenue, making it $3.2 billion. Results also reported an adjusted operating profit increase of 4% with an expansion in adjusted operating profit margins on wireless activities. Rogers' subscribed users also grew by 64,000 during the quarter. President and CEO of Rogers, Nadir Mohamed gave further detail of quarterly activities, “...we made significant investments in our networks, Media brands and service infrastructure while delivering even greater value to our customers. While there has been a continued level of heightened regulatory activity in the Canadian telecom sector, our core focus remains steadfastly upon delivering the most innovative products, greater value and reliable service to our customers.”

Corus Entertainment (T.CJR.B, StockForum) reveals fourth quarter and year-end results with specialty advertising revenues floating up 6% for the quarter and 2% for the fiscal year. However consolidated segment profit sunk 11% from last quarter and fell 7% for the fiscal year. John Cassaday, president and CEO of Corus explained this way, “Fiscal 2013 was a challenging year, but we made progress on a number of fronts, creating the foundation for strong growth moving forward. We were pleased to see an increase in specialty advertising revenue across all of our core Television networks, ongoing ratings momentum, and continued gains in our Pay television business. These gains were offset by a decline in the fourth quarter in our Radio division and higher corporate costs. Our outlook for 2014 is positive and the fundamentals are in place for a strong year ahead. The recent reorganization of our leadership team will support our growth objectives and we are excited about the significant value that our pending acquisitions will bring to the business.”

Husky Energy (T.HSE, StockForum) strong and steady in third quarter, reporting $1.35 billion in quarterly operating cash flow – up 6% from 2012. Net earnings were down 3% to $512 million. Upstream production totaled out at 309,000 barrels per day (boe/day) while refining facilities and the Lloydminster Upgrader averaged 300,000 barrels per day, even with the Upgrader shutdown. With the Liwan Gas Project over 95% complete, Husky Energy president and CEO, Asim Ghosh was happy to note, “We are hitting our targets and making steady progress towards executing our important milestones.”

IMAX (T.IMX, StockForum) announced highlights of third quarter results, noting quarterly box office take of $133 million. Revenues were $51.7 million adjusted EBITDA and adjusted net income was $4.4 million or $0.06 per diluted share. Richard L. Gelfond, IMAX CEO, was confident with the company's current direction, “We continued to make significant progress this quarter toward our key strategic initiatives, including strong signings, controlling SG&A and continued advancements on differentiation. Looking ahead, our great start to Q4, including IMAX's strong performance on Gravity and Stalingrad, reminds us of the importance of assessing our portfolio of films on an annual basis, which we believe is a relatively predictable driver of box office performance over the long-term.”

Domtar (T.UFS, StockForum) took a $46 million net loss in the second quarter, so the company happily reported third quarter results with net earnings of $27 million. However 2013 third quarter net earnings were down 59% from 2012's quarterly figure of $66 million. Sales were reported at $1.375 billion. Domtar president and CEO Joh D. Williams clarified quarterly results and reaffirmed corporate goals, “Our personal care business continues its earnings progression with the ongoing integration of the recent AHP acquisition. While third quarter results were negatively impacted by an inventory adjustment at a large retail customer, we are enthusiastic about the long-term prospects for personal care and remain on track to deliver more than $200 million of EBITDA by 2017 with our existing platform.”

theSource (V.SCR, StockForum) announced results for both fourth quarter and year-end. 2012 and 2013 remained the same with fourth quarterly revenue of $1.3 million. However the yearly revenue jumped 26% from $4.2 million to $5.3 million. theSource also suffered an EBITDA loss of $8.3 million – 22% higher than last fiscal year. John Levy, president and CEO of theSource, was elated with the results, “This has been a great inaugural year for theScore as an independent mobile sports company. We've recorded record user numbers and delivered the biggest app update in our history, giving millions of sports fans a uniquely mobile-first experience. We now look forward to building on this success during F2014 and continuing the phenomenal growth of our user base by offering fans the best-in-class mobile sports experience they deserve.”

Goldcorp (T.G, StockForum) reports what seems to be vastly improved third quarter results with quarterly revenues of $1.2 billion or $0.23 per share – over 63% better than 2012. However net earnings took a tremendous dive, falling from $498 million in 2012 to $5 million in 2013. Despite the rocky report, Goldcorp president and CEO, Chuck Jeannes was confident, “Operations throughout our portfolio performed as planned during the third quarter and we remain on track to achieve our annual production and cost guidance.”

Shaw Communications (T.SJR.PR.A, StockForum) presents financial highlights from fourth quarter and year-end results with consolidated revenue for the quarter and the year being $1.25 billion and $5.14 billion respectively. Total operating income was down slightly from $501 million in 2012 to $496 million in 2013, but the annual period increased by 3% to $2.2 billion. Shaw CEO Brad Shaw was happy with the report, “Our fiscal 2013 results reflect healthy financial growth as we focus on sustainable subscriber acquisition, customer experience and operational execution. Our continued investments in technology, including expansion of Shaw Go WiFi - now with over 20,000 locations; additional apps supporting our TV everywhere service with the launch of Global Go; and, the Anik G1 satellite launch with the addition of over 140 new channels in Shaw Direct, continue to deliver innovation, choice and value to our customers.”

WANTED Technologies (V.WAN, StockForum) reports fourth quarter and year-end results with annual revenues climbing 20% to $7.2 million. Also 2013 net income dwarfed 2012 with $1.366 million compared to a 2012 net loss of $13,610. Bruce Murray, president and CEO, explains WANTED's success, “Our products are designed to be most effective in an economy where there is competition for the best talent. We provide information that is based on supply and demand for talent. We can show our clients where there are adequate numbers of employable candidates and where the competition for that talent is not as intense.”



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