Q: Comments please on Gibson Energy's announcements this week. Also, how significant is USD strength to Gibson's financials.
Thanks team.
Rob
Thanks team.
Rob
5i Research Answer:
GEI released its 2025 capital budget that included numerous positive updates. Highlights were the company expecting to complete its dredging project next year and a contract extension at its Gateway Terminal. We think it was a positive update and analysts spoke quite positively on it as well. Majority of the companies revenue is derived from Canda at 87% year-to-date. GEI does hedge out its US currency exposure, but its Gateway Terminal does give it some exposure to the US Dollar. As per the company's most recent report, "A 5% increase or decrease in foreign exchange rates between $US and $CAD, based on current balances, would increase or decrease the Company's net income by $17.4 million (September 30, 2023 – $13.6 million)."