Q: How do you feel about CJ's earnings announced last week?
Thank you!
Thank you!
5i Research Answer:
CJ missed on the top and bottom line. EPS was 16c below estimates of 21c. Revenue was $147.99M, below estimates of $169M and declined 13% year-over-year. Adjusted funds flow was $65.7M ($0.41 per share) declining 3% year-over-year. The decline was driven by planned Company owned and unplanned third-party facility turnarounds impacted the third quarter production. Third quarter production of 21,128 boe/d with a negative impact of 500 boe/d from the facility turnarounds. Certainly weaker results that were impacted by the facility shutdowns but this may be a temporary issue. We are still fine with the dividend as payout ratio over the last twelve months is just 44% of cash from operations.