Oil sands producers await TMX price rise
On Wednesday, diluted bitumen began flowing through the expanded Trans Mountain pipeline (even at a brisk pace, it is going to take weeks to succeed in its destination). This gives hope that Canada finally exists Oil sands Manufacturers will have the ability to scale back the discount that a now larger cohort of refiners pay for his or her product. Meanwhile, two of the pipeline’s largest shippers reported first-quarter earnings that suggested a rise in revenue.
Highlights of the oil sands results
Both Cenovus’ production and earnings surprised positively, and the corporate sweetened the pot even further by increasing its base dividend by 29% and declaring a variable dividend of 13.5 cents per share for this quarter. Production within the quarter exceeded 800,000 barrels of oil equivalent per day. At the identical time, the corporate reduced its total debt barely.
Canadian Natural Resources’ results suffered from lower-than-expected production and realization prices, particularly on the natural gas side. Production was 1.33 million barrels of oil equivalent per day.
Amazon, Apple still great
Two more tech megacorporations reported first-quarter results this week, helping keep the Magnificent 7 train rolling.
US earnings highlights
All amounts in US dollars
- Amazon (AMZN/NASDAQ): Adjusted earnings per share was $0.98which beat the consensus estimate of 83¢, while revenue of $143.3 billion beat the forecast of $142.6 billion.
- Apple (AAPL/NASDAQ): Earnings per share collapsed $1.53 (above the estimate of $1.50) on revenue of $90.8 billion (versus expectations of $90.3 billion).
Amazon reported continued strong demand for its web services as corporate customers signed longer-term contracts with larger commitments. Generative artificial intelligence (AI) components increased overall spending, the corporate said. Advertising revenue also saw strong growth, although there are signs that customers have gotten more cautious about retail spending. The stock rose 3% on Wednesday morning following the earnings release.
Amazon competitor Walmart, meanwhile, has decided to shut 51 clinics in U.S. stores and discontinue its virtual health services, the corporate announced Tuesday. She blamed high operating costs and “a challenging reimbursement environment” for the poor profitability of the division, which was first established in 2020.
Apple’s sales fell lower than expected and profits beat Wall Street estimates. The company also said it will increase its dividend to 25 cents per share and authorize $110 billion in share buybacks. Services revenue rose to almost $24 billion, offsetting declines in sales of iPhones and other devices. In Greater China (including Taiwan, Singapore and Hong Kong), sales fell 8%, however the decline was not as steep as analysts expected. Apple shares rose nearly 6% before the market opened on Friday, and greater than a dozen analysts increased their price goal on Apple.
Tip for fast food
There’s no arguing about taste, as fast food providers acted in another way in the primary quarter; Some found themselves caught between cost inflation and consumer austerity, while others continued to over-expand their sales.
