Q: Good afternoon,
Any views as to what is going on with CPX today? I have been a long term holder, and would love to know your view on the company in the current context - sell, hold, or accumulate?
Thanks as always
Any views as to what is going on with CPX today? I have been a long term holder, and would love to know your view on the company in the current context - sell, hold, or accumulate?
Thanks as always
5i Research Answer:
CPX reported earnings, with adjusted income of $1.57 per share on $1.12B in revenue. Profit fell 28% on lower electricity prices in Alberta. EBITDA of $279M missed estimates of $336.8M. The electricity price decline was largely anticipated. CPX also announced it is no longer pursuing its carbon-capture project at its Genesee facility as it is not economically feasible. The stock is down 7% YTD along with most of the sector. We would consider it "OK" for income investors but would only rank it a HOLD.