MORNING NEWS CALL TOP NEWS BEFORE THE BELL STOCKS TO WATCH. REUTERS Canada Edition Thursday, July 27, 2017

Transcription

1 MORNING NEWS CALL REUTERS Canada Edition Thursday, July 27, 2017 TOP NEWS Potash Corp's Q2 revenue beats as potash sales rise Canada's Potash Corp of Saskatchewan reported better-than-expected revenue as it sold more potash at higher prices compared with last year. Canada's Cenovus posts profit as Conoco deal boosts production Oil producer Cenovus Energy Inc reported a profit in the second quarter compared to a year-ago loss, helped by its purchase of ConocoPhillips' Canadian oil sands assets. Teck Resources beats profit estimates on higher steelmaking coal prices Canadian miner Teck Resources Ltd reported a better-than-expected quarterly profit of C$1 per share helped by higher prices of steelmaking coal and a weak Canadian dollar. Barrick says will start Tanzania talks next week as earnings beat Barrick Gold Corp, the world's largest gold miner by production, reported better-than-expected quarterly earnings on Wednesday as its mining costs fell and said it would begin talks with the Tanzanian government next week about an export ban. Glencore lowers 2017 output targets after first half dip Glencore cut its 2017 output targets after changes in what it extracts at some of its mines, rainfall and maintenance hit production in the first half of the year. BEFORE THE BELL Stock futures pointed to a slightly higher opening for Canada's main stock index as commodity prices rose on dovish signals from the U.S. Federal Reserve. U.S. stock index futures were higher ahead of a raft of earnings reports led by Amazon and Intel. A punishing fall in AstraZeneca's shares after the failure of a key lung cancer study for the pharma company weighed on major European bourses. Asian stock indexes closed higher. The Swiss franc's fall to its weakest since the collapse of an official cap in 2015 dominated major currency markets. Gold traded higher benefiting from weakness in U.S. dollar. Oil rose supported by a steeper-thanexpected decline in U.S. crude inventories that boosted expectations of a shift to a more balanced market. STOCKS TO WATCH Results Barrick Gold Corp (ABX). The gold miner by production, reported better-than-expected quarterly earnings on Wednesday as its mining costs fell and said it would begin talks with the Tanzanian government next week about an export ban. Barrick reported adjusted net earnings of $261 million, or 22 cents a share, in the three months to end-june, up from $158 million, or 14 cents a share, in the year-ago period on the back of lower mining costs and higher gold and copper sales volumes. That beat the 18 cents a share that analysts had expected, on average. Cenovus Energy Inc (CVE). The oil producer reported a profit in the second quarter compared to a year-ago loss, helped by its purchase of ConocoPhillips' Canadian oil sands assets. The company reported a net profit of C$2.64 billion ($2.1 billion), or C$2.37 per share in the quarter, compared to a loss of C$267 million or 5 Canadian cents per share, a year earlier. Crescent Point Energy Corp (CPG). The oil and gas producer posted a quarterly profit, compared with a year-earlier loss, helped by higher realized oil prices and an increase in production. The company's net income was C$83.6 million, or 15 Canadian cents per share, in the second quarter ended June 30, compared with a loss of C$226.1 million, or 45 Canadian cents per share, a year earlier. Goldcorp Inc (G). The gold producer reported better-than-expected earnings on Wednesday and lowered its forecast for costs this year, while also announcing that its chief financial officer, Russell Ball, would leave the company. Adjusted for one-off items, earnings were 12 cents a share, ahead of analyst estimates of 8 cents a share, on average. Maple Leaf Foods Inc (MFI). The meat-packaging company reported a 19 percent rise in quarterly profit, helped by strong performance in its pork products. Net earnings rose to C$37.3 million, or 28 Canadian cents per share, in the second quarter ended June 30, from C$31.4 million, or 23 Canadian cents, a year earlier. Maple Leaf, one of Canada's biggest pork processors, said sales rose to C$925.9 million from C$854.6 million.

2 Potash Corp of Saskatchewan (POT). The company reported a 66 percent surge in quarterly profit on Thursday as it sold higher volumes of potash at better prices compared with last year. Net earnings rose to $201 million, or 24 cents per share, in the second quarter ended June 30, from $121 million, or 14 cents per share, a year earlier. The Saskatoon, Saskatchewan-based fertilizer producer's revenue rose 6.4 percent to $1.1 billion. Suncor Energy Inc (SU). The oil and gas producer reported a second-quarter profit on Wednesday due to stronger crude oil prices and increased production from some upstream assets and refining operations. Suncor reported a net profit of C$435 million ($ million), or 26 Canadian cents per share, versus a loss of C$735 million, or 46 Canadian cents per share, during the same period a year earlier when wildfires in northern Alberta disrupted production. Teck Resources Ltd (TECKb). The miner reported a better-than-expected quarterly profit of C$1 per share, helped by higher prices of steelmaking coal and a weak Canadian dollar. Adjusted profit came in at C$577 million, or C$1 per share, for the second quarter ended June 30, compared with C$15 million, or 3 Canadian cents per share, a year earlier. On average, analysts had expected Vancouver-based Teck to report earnings of 90 Canadian cents a share. In Other News Brookfield Business Partners (BBU_u). The asset manager said it would buy 60 percent of Teekay Offshore Partners, a subsidiary of marine transportation provider Teekay Corp, for about $750 million. Brookfield said it would invest $610 million to buy the stake in Teekay Offshore and will also acquire a $200 million loan given by Teekay Corp to Teekay Offshore. Intellipharmaceutics International Inc (IPCI). A panel of independent advisers to the U.S. Food and Drug Administration overwhelmingly concluded on Wednesday that there is not enough evidence to support approval of the company's long-acting opioid painkiller. Long-acting opioids contain high doses of narcotics designed to be released over time. If crushed pills are snorted or injected, they release their full dose all at once, making them dangerous and valuable for addicts. ANALYSIS Why record U.S. oil exports are poised for even more growth U.S. refineries are producing more fuel than ever as they seek to meet rising demand - from overseas, rather than the drivers on nearby roadways. Last year, the U.S. became the world's top net exporter of fuel, an outgrowth of booming domestic production since the shale oil revolution started in That's a fundamental shift from the traditional U.S. role in global markets as a top importer and consumer. ANALYSTS' RECOMMENDATION Iamgold Corp (IMG). Canaccord Genuity raises price target to C$9.50 from C$9.25 after the company announced a significant increase in reserves at its Rosebel mine in Suriname. Lundin Mining Corp (LUN). Berenberg raises price target to C$9.25 from C$8.65 after the company reported Q results with a small beat at operating income. Vermilion Energy Inc (VET). RBC raises rating to outperform from sector perform after the company s second-quarter financial results came broadly in-line with expectations. ECONOMIC EVENTS No economic indicators are scheduled for release. COMPANIES REPORTING RESULTS July 27: AltaGas Ltd (ALA). Expected Q2 earnings of 11 Canadian cents per share Cameco Corp (CCO). Expected Q2 loss of 2 Canadian cents per share Canadian Utilities Ltd (CU). Expected Q2 earnings of 49 Canadian cents per share CanWel Building Materials Group Ltd (CWX). Expected Q2 earnings of 16 Canadian cents per share Cenovus Energy Inc (CVE). Expected Q2 earnings of 2 Canadian cents per share Crescent Point Energy Corp (CPG). Expected Q2 loss of 1 Canadian cent per share 2

3 Eldorado Gold Corp (ELD). Expected Q2 earnings of 1 cent per share First Quantum Minerals Ltd (FM). Expected Q2 earnings of 2 cents per share MacDonald Dettwiler and Associates Ltd (MDA). Expected Q2 earnings of C$1.25 per share Maple Leaf Foods Inc (MFI). Expected Q2 earnings of 37 Canadian cents per share MEG Energy Corp (MEG). Expected Q2 loss of 22 Canadian cents per share Mercer International Inc (MERC). Expected Q2 earnings of 24 cents per share Mitel Networks Corp (MITL). Expected Q2 earnings of 14 cents per share Potash Corporation of Saskatchewan Inc (POT). Expected Q2 earnings of 18 cents per share Teck Resources Ltd (TCKb). Expected Q2 earnings of 90 Canadian cents per share TFI International Inc (TFI). Expected Q2 earnings of 51 Canadian cents per share Yamana Gold Inc (YRI). Expected Q2 earnings of 1 cent per share July 28: Bombardier Inc (BBDb). Expected Q2 loss of 1 cent per share Fortis Inc (FTS). Expected Q2 earnings of 55 Canadian cents per share George Weston Ltd (WN). Expected Q2 earnings of C$1.68 per share Imperial Oil Ltd (IMO). Expected Q2 earnings of 30 Canadian cents per share Norbord Inc (OSB). Expected Q2 earnings of $1.00 per share TransCanada Corp (TRP). Expected Q2 earnings of 68 Canadian cents per share CORPORATE EVENTS 08:00 Barrick Gold Corp (ABX). Q2 earnings conference call 08:00 Constellation Software Inc (CSU). Q2 earnings conference call 08:00 Lundin Mining Corp (LUN). Q2 earnings conference call 08:00 Uni Select Inc (UNS). Q2 earnings conference call 09:00 New Gold Inc (NGD). Q2 earnings conference call 09:30 Suncor Energy Inc (SU). Q2 earnings conference call 10:00 Detour Gold Corp (DGC). Q2 earnings conference call 11:00 Agnico Eagle Mines Ltd (AEM). Q2 earnings conference call 11:00 AltaGas Ltd (ALA). Q2 earnings conference call 11:00 Canfor Corp and Canfor Pulp Products Inc. (CFP). Q2 earnings conference call 11:00 Cenovus Energy Inc (CVE). Q2 earnings conference call 11:00 Teck Resources Ltd (TECKb). Q2 earnings conference call 12:00 Crescent Point Energy Corp (CPG). Q2 earnings conference call 12:00 Methanex Corp (MX). Q2 earnings conference call 13:00 Cameco Corp (CCO). Q2 earnings conference call 13:00 Goldcorp Inc (G). Q2 earnings conference call 13:00 Potash Corporation of Saskatchewan Inc (POT). Q2 earnings conference call 14:30 Maple Leaf Foods Inc (MFI). Q2 earnings conference call 16:00 MacDonald Dettwiler and Associates Ltd (MAC).Annual Shareholders Meeting EXDIVIDENDS ARC Resources Ltd (ARX). Amount C$0.05 Badger Daylighting Ltd (BAD). Amount C$0.03 Canadian Tire Corporation Ltd (CTCa). Amount C$0.65 CES Energy Solutions Corp (CEU). Amount C$0.00 Chartwell Retirement Residences (CSH_u). Amount C$0.05 Chorus Aviation Inc (CHR). Amount C$0.04 CI Financial Corp (CIX). Amount C$0.12 Cineplex Inc (CGX). Amount C$0.14 3

4 Crescent Point Energy Corp (CPG). Amount C$0.03 Enerplus Corp (ERF). Amount C$0.01 First National Financial Corp (FN). Amount C$0.15 Freehold Royalties Ltd (FRU). Amount C$0.05 Kinder Morgan Canada Ltd (KML). Amount C$0.06 Morneau Shepell Inc (MSI). Amount C$0.07 Mullen Group Ltd (MTL). Amount C$0.03 Northland Power Inc (NPI). Amount C$0.09 Peyto Exploration & Development Corp (PEY). Amount C$0.11 PrairieSky Royalty Ltd (PSK). Amount C$0.06 Superior Plus Corp (SPB). Amount C$0.06 TORC Oil & Gas Ltd (TOG). Amount C$0.02 Whitecap Resources Inc (WCP). Amount C$0.02 (All analysts' estimates are according to Thomson Reuters I/B/E/S) PICTURE OF THE DAY A demonstrator with face paint takes part in a protest by black and indigenous women against racism and machismo in Sao Paulo, Brazil, July 25, REUTERS/Nacho Doce 4

5 (Compiled by Nikhil Kumar and Pradip Kakoti in Bengaluru) For questions or comments about this report, contact: To launch a Co-branded Morning News Call from your firm, contact: morning.newscall@thomsonreuters.com For more information about our products: thomsonreuters.com/products_services Or send us a sales enquiry at: thomsonreuters.com/products_services/financial/contactus/ NEWS ACCESS MADE EASY Reuters Top News page displays a range of market and sector-specific subjects including: US, Europe and Asian companies, fixed income, credit, the global economy, emerging markets, corporate finance and industry sectors. To access Reuters Top News -- Thomson ONE: Click News tab, Select Front Page from top right, Click Top News Thomson Reuters. All rights reserved. This content is the intellectual property of Thomson Reuters and its affiliates. Any copying, distribution or redistribution of this content is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world. 5