Today, several major TSX-listed companies reported Q1 earnings. Here’s a rundown of some of the results.
Air Canada
Air Canada reports that a 16% increase in operating costs due to higher fuel prices and other items has resulted in a $37-million loss for the first quarter. The loss was equal to 14 cents per share, and contrasted with a $101 million profit in the first quarter a year ago.
The Montreal-based airline says its revenue was up $299 million from last year to $3.64 billion, but its operating expenses increased by $507 million. The airline adds fuel prices were about 48% higher than in the first quarter of 2016, when global oil prices were near 13-year lows.
In addition, Air Canada recorded a $30 million special item related to a fine imposed in March by the European Commission on several cargo carriers. The Commission alleges the 11 airlines colluded to fix cargo prices between 1999 and 2006, while Air Canada says it followed the law and will fight the allegations.
As of 10:06am EDT, Air Canada (AC) was trading around $13.65, up from a close of $12.79 on May 4.
TransCanada
TransCanada Corp. says its first-quarter profit more than doubled what it was last year as revenue increased by 35%. The Calgary-based company says it benefited from higher contributions from its U.S. and Mexican natural gas pipelines.
The net profit attributable to common shareholders amounted to $643 million or 74 cents per share for the quarter ended March 31, up from $252 million or 36 cents per share a year ago.
Revenue was $3.39 billion, up from $2.50 billion in the first quarter of 2016 and about $200 million above analyst estimates.
After adjustments, TransCanada’s comparable earnings were $698 million or 81 cents per share for its most recent quarter, up from $494 million or 70 cents per share a year ago.
Analysts had expected 74 cents per share, according to Thomson Reuters data.
As of 10:06am EDT, TransCanada (TRP) was trading close to $63, up from a close of $62.65 on May 4.
Interfor
Interfor Corp. (IFP) recorded net earnings of $19.7 million, or $0.28 per share, in Q1 2017. That compares to $26.6 million or $0.38 per share in Q4 2016, and $0.8 million or $0.01 per share a year earlier. It says adjusted net earnings, which takes into account the effects of share-based compensation expense and non-recurring items, were $22.7 million or $0.32 per share in the quarter, compared to $17.7 million or $0.25 per share in Q4 2016, and $2.7 million or $0.04 per share a year earlier.
Interfor, one of the largest lumber producers in the world, cites higher lumber prices and increased capital spending in its release. But it also points to production gains across most regions, despite “the B.C. Coast logging business [being] negatively impacted by difficult winter conditions that resulted in log production and log revenues declining by 18% and 39%, respectively, in Q1 2017 versus Q4 2016.”
Interfor references the U.S. Department of Commerce’s recent move to preliminarily rule on its case against Canadian softwood lumber producers. It says, “As a result, the U.S. Customs and Border Protection Agency will begin collecting deposits from Interfor on April 28, 2017, for countervailing duties at a preliminary rate of 19.88% on its shipments of softwood lumber from Canada into the U.S.”
Interfor adds, “The DoC has taken the unjustified position that most Canadian lumber producers, including Interfor, may be required to submit a deposit for retroactive countervailing duties for the 90-day period from January 28 to April 27, 2017. Interfor does not believe the retroactive application of duties will stand up under final scrutiny.”
Read: How significant is U.S.-Canada lumber dispute?
As of 12:04pm EDT, Interfor (IFP) was trading at $18.79, compared to a close of $19.29 on May 4.
Enerplus
Enerplus Corporation, one of Canada’s largest independent oil and gas producers, reported Q1 2017 net income of $76.3 million, or $0.32 per share. This compares to a net loss of $173.7 million, or $0.84 per share, a year earlier.
In its release, Enerplus points to strong adjusted funds flow of $119.9 million and lower operating expenses. It says the company is on track to “grow total company liquids production by 25% from the first quarter of 2017 to the fourth quarter.”
Read: TransCanada deal won’t solve natural gas issues
As of 12:10pm EDT, the company’s stock (ERF) was trading at $9.49, compared to a close of $8.98 on May 4.