FOR: SUNSHINE OILSANDS LTD.HKSE SYMBOL: 2012Date issue: May 18, 2017Time in: 5:43 AM eAttention:
HONG KONG, CHINA and CALGARY, ALBERTA–(Marketwired – May 18, 2017) – The Board
of Directors of Sunshine Oilsands Ltd. (“the Corporation” or “Sunshine”)
(…
EDMONTON — Alberta is bringing in new rules to make amends to 4,400 families who lost a loved one and were ordered to pay back their carbon tax rebate.
“For a relatively small number of families, the program didn’t work as it should have,” Finance Minister Joe Ceci said Wednesday.
“These families received bluntly worded letters from the Canada Revenue Agency asking them to repay all or part of the rebate because the death of a loved one changed their eligibility.
“Grieving families should not face the indignity of a collection letter demanding the repayment of a benefit that is supposed to make their lives better.”
Ceci made the changes in a tax statutes amendment bill introduced in the legislature Wednesday afternoon.
The province will no longer seek the return of rebates due to death. Those received the rebate on behalf of a loved one and paid it back will be reimbursed.
All rebates will be dispatched quarterly. Some smaller amounts had been paid out in a lump sum.
The payouts are tied to a broad-based carbon tax the province introduced Jan. 1 which increased costs at gasoline pumps and on home heating bills. The tax is intended to pay for initiatives and programs to move Alberta to a more environmentally friendly economy.
Middle- and low-income earners — about six in 10 households — receive rebates on a sliding scale to give them incentives to go green, but they’re not punished if they don’t.
In January, the province delivered some lump sum rebates in a program administered through the Canada Revenue Agency. By March, some Albertans were saying they were receiving collection letters from Ottawa demanding repayment after a death.
There were stories of a collection demand on a cancer-stricken mom who used her $180 carbon tax rebate to buy gifts for her kids before she died.
A senior whose wife died said he got a letter demanding he return the carbon tax rebate she had received.
A daughter taking care of the estate of her deceased mother received a notice to repay the $100 rebate.
Ceci said he has spoken personally with some of those affected.
“I want them to know we understand their frustration,” he said. “As soon as we became aware of this issue in March, we took action.”
Ceci said the Canada Revenue Agency was doing its job properly in sending out the letters and the fault lay with his department.
“I had not anticipated that.”
The government says 1.2 million carbon levy repayments totalling $150 million have been sent out so far this year.
Eligibility is based on household income and the number of people in a home. Data comes from personal income tax information.
Rebates are issued in January, April, July, and October and the minimum rebate entitlement is $100.
Dean Bennett, The Canadian Press
CALGARY — A coalition of aboriginal groups from Canada and the U.S. has signed a declaration against the Keystone XL pipeline, vowing to use the courts and whatever other means necessary to block the controversial project.
At a signing ceremony in Calgary Wednesday, leaders of the Blackfoot Confederacy and Great Sioux Nation representing tribes in both countries called for more dialogue and consultations on the project, which would run through their traditional lands.
“It’s our responsibility to protect, and get involved, advocate and prevent this type of threat from crossing traditional Blackfoot lands,” said Chief Stanley Charles Grier of the Piikani nation at the ceremony.
Chairman Brandon Sazue of the Crow Creek Sioux Tribe in South Dakota said they hope to use the “right way” of opposing the pipeline, including the courts and negotiations, but as a last means he and others are prepared to protest like they did against the Dakota Access Pipeline.
Councilwoman Casey Camp-Horinek of the Ponca Nation of Oklahoma, who was arrested at the Dakota Access protests alongside Sazue, said she’s also ready to protest again.
“We are hoping to find a peaceful resolution,” said Camp-Horinek, “but all of us understand that if it’s necessary for us to create a camp again, and to stand in opposition, we’ll do that.”
She said she’s opposed to the pipeline because it and other resource extraction and development projects have threatened her people.
Earlier this year, U.S. President Donald Trump revived the pipeline proposed by TransCanada Corp. (TSX:TRP) when he granted it a presidential permit, reversing Barack Obama’s rejection in 2015.
TransCanada maintains the US$8 billion pipeline, set to run 1,900 kilometres between Hardisty, Alta., and Nebraska, will be environmentally safe create jobs, and boost the economy.
The project still requires regulatory approval in Nebraska, while environmental groups have challenged the U.S. federal approval in court.
Ian Bickis, The Canadian Press
FOR: LEUCROTTA EXPLORATION INC.
TSX VENTURE SYMBOL: LXE
Date issue: May 17, 2017
Time in: 7:06 PM e
Attention:
CALGARY, ALBERTA–(Marketwired – May 17, 2017) –
THIS PRESS RELEASE IS NOT FOR PUBLICATION OR DISSEMINATION IN THE UNITED
STATES, FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF
UNITED STATES SECURITIES LAW
Leucrotta Exploration Inc. (“Leucrotta” or the “Company”) (TSX VENTURE:LXE) is
pleased to announce that, further to its press release dated April 5, 2017
wherein the Company announced that it had agreed to acquire 18.5 net sections
of undeveloped land (the “Lands”) located within the Corporation’s core area
encompassing 116 gross (105 net) sections of the Lower Montney Turbidite Light
Oil Resource Play pursuant to a purchase and sale agreement and a land swap
agreement for aggregate cash consideration of $36 million (subject to certain
customary purchase price adjustments) with respect to the majority of the Lands
(the “Land Acquisition”) and the swap of certain non-core sections of the
Corporation’s lands located in Two Rivers area of British Columbia with respect
to the balance of the Lands, the Company has closed the Land Acquisition. For
further details please see Leucrotta’s press release dated April 5, 2017 and
its short form prospectus dated April 19, 2017, both of which are available
under Leucrotta’s System for Electronic Document Analysis and Retrieval (SEDAR)
profile at www.sedar.com.
ABOUT LEUCROTTA EXPLORATION INC.
Leucrotta Exploration Inc. is a Montney focused producer with lands located in
the Doe/Mica area in northeast British Columbia. Leucrotta’s current acreage in
the area is approximately 100,500 gross (90,200 net) acres or approximately 157
gross (141 net) sections of Montney land. Current production is approximately
2,700 boe/d (25% oil & NGLs). Leucrotta’s shares are listed on the TSX Venture
Exchange under the symbol “LXE”.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
– END RELEASE – 17/05/2017
For further information:
Leucrotta Exploration Inc.
Robert Zakresky
President and Chief Executive Officer
(403) 705-4525
OR
Leucrotta Exploration Inc.
Nolan Chicoine
Vice President, Finance and Chief Financial Officer
(403) 705-4525
OR
Leucrotta Exploration Inc.
700, 639 – 5th Ave SW
Calgary, Alberta T2P 0M9
(403) 705-4525
(403) 705-4526 (FAX)
www.leucrotta.ca
COMPANY:
FOR: LEUCROTTA EXPLORATION INC.
TSX VENTURE SYMBOL: LXE
INDUSTRY: Energy and Utilities – Oil and Gas
RELEASE ID: 20170517CC0089
Press Release from Marketwired 1-866-736-3779
All press releases are written by the client and have NO affiliation with the news copy written by The Canadian Press. Any questions that arise due to the content or information provided in the press release should be directed to the company/organization
issuing the release, not to The Canadian Press.
VICTORIA — British Columbia’s three Green members will use their increased political clout to fight Kinder Morgan’s $7.4-billion Trans Mountain pipeline expansion project, party leader Andrew Weaver says.
Weaver reaffirmed the Greens’ election campaign promises Wednesday to oppose the pipeline and the B.C. government’s $8.8-billion Site C hydroelectric dam as the party enters high-stakes political negotiations with the New Democrats and Liberals over Green support.
The final results of last week’s B.C. election remain inconclusive after Christy Clark’s Liberals and John Horgan’s New Democrats failed to win a majority in the 87-seat legislature. The current standings have 43 Liberals, 41 New Democrats and three Greens.
Elections BC, the agency that administers provincial elections, reports that almost 180,000 absentee ballots remain to be counted. The final tally, including recounts in two ridings, Vancouver-False Creek and Courtenay-Comox, is expected to be announced next week.
Weaver said his members believe it’s their responsibility to stop the federally-approved Kinder Morgan project.
“We believe we need to support the First Nations in B.C. who are in court now,” he said.
Weaver said the Greens will seek intervener status to support a pending legal challenge by First Nations and municipalities opposed to the project.
Alberta Premier Rachel Notley said Tuesday her province had been given intervener status in the same legal action. One province or region can’t hold hostage the economy of another province, she said.
The Federal Court of Appeal application, launched by several First Nations, environmental groups and the cities of Burnaby and Vancouver, seeks to have the approval of the pipeline expansion project by the National Energy Board thrown out.
The Kinder Morgan project would double the pipeline and triple the available capacity between Alberta and B.C., allowing for up to 890,000 barrels of crude to be shipped every day.
Weaver said the Greens strongly reject the B.C. Liberal government’s support for the project.
“The fact we’re being told to ship diluted bitumen in our coastal waters is just reckless,” he said. “The government is reckless for agreeing to it.”
Clark said Tuesday that B.C. negotiated $1.5 billion worth of environmental protections and services with the federal government in exchange for provincial support for the pipeline project. The Liberals also negotiated a 20-year revenue-sharing agreement worth about $1 billion with Kinder Morgan.
Weaver said the National Energy Board approval process for the pipeline was flawed and Clark’s demand that five conditions be met before her government approved the expansion was “pure political spin.”
Clark said she is willing to collaborate with the Greens and the New Democrats to ensure a working government.
The NDP leader has said his party won’t work with the Liberals, but he believes the New Democrats and Greens share many common positions, including halting the Kinder Morgan pipeline.
Weaver said he is prepared to enter face-to-face negotiations with both parties.
He suggested the Greens and NDP appear more aligned on issues surrounding the environment and electoral and campaign-finance reforms.
Weaver, who said he negotiated faculty contracts at the University of Victoria, said he will head up the four-person Green negotiating team. Norman Spector, a chief aide to both former prime minister Brian Mulroney and former B.C. premier Bill Bennett, was recruited to provide political advice to the Green negotiators.
Dirk Meissner, The Canadian Press
CALGARY — Sales of Crown drilling rights in Alberta and B.C. have already delivered more money to provincial treasuries this year than last year, when they generated record low returns.
Oil and gas producers in Alberta have paid out a total of $138 million in drilling rights auctions so far this year, more than the $137 million they spent in all of 2016.
In British Columbia, they’ve spent $63 million, more than quadruple the $15 million last year.
The figures illustrate growing oilpatch confidence in light of stronger commodity prices this year as well as burgeoning production from Western Canadian shale oil and gas wells.
TD Securities analyst Juan Jarrah says in a report that the Alberta sales are being driven by companies exploring the west-central part of the province where they’ve discovered a shallower and more oil-rich leg of the extensive Duvernay shale formation.
The Kaybob Duvernay, located farther north, has attracted most of the investment in the play so far and was considered the driving force behind Alberta’s record-setting $3.5 billion in drilling rights sales in 2011.
The best year for drilling rights sales in B.C. was 2008, when the province raised $2.7 billion.
The Canadian Press
CALGARY — Canadian drillers and other oilfield service providers have stepped up merger and acquisition activity, with more deals expected in coming months, as players battered by more than two years of weak oil prices look to lower costs and strengthen finances by scaling up.
Crude prices have stabilized from the lows of early 2016 and the big energy companies that hire drillers are increasing spending from depressed levels. That has spurred some drillers and related service companies to rehire staff and redeploy equipment after cutting costs to the bone during the downturn.
But many still find it tough to raise capital, increasing the pressure to do deals, said Alf Sailer, managing director of M&A advisory services for ATB Financial.
“The pace of M&A transactions, it really has picked up,” said Sailer, who sees the trend continuing.
“The lenders are still nervous about oilfield service companies and the equity investors are also still nervous. We’re not seeing either of those warm up to the oilfield services business yet.”
Source Energy Services (TSX:SHLE) and STEP Energy Services (TSX:STEP) recently raised money in initial public offerings that fell short of expectations, Sailer said, noting both have since traded at less than their IPO prices.
On Monday, Calgary-based Secure Energy Services (TSX:SES) said it will pay $26 million in a cash-and-shares deal for smaller rival Ceiba Energy Services, which had announced a review of alternatives last fall. Interim Ceiba CEO Ron Sifton said the company decided it was too small to compete profitably in the oilfield disposal business and its depressed share price meant it couldn’t raise equity to grow bigger. Adding debt was not an option.
“Our balance sheet was tapped out,” he said.
Driller CWC Energy Services (TSX:CWC) announced a similar process this month to find a way to grow again while reducing its high level of debt.
“We’ve come through two, two-and-a-half years of just sitting and trying to figure out how to survive,” said CEO Duncan Au.
The recent consolidation trend started with a low-profile swap. Canada’s largest drilling rig contractor by market capitalization, Precision Drilling (TSX:PD), agreed in December to trade its Canadian coil tubing operations plus $12 million to Essential Energy Services (TSX:ESN) in return for Essential’s service rig business.
At its annual meeting on Wednesday, Precision CEO Kevin Neveu said the swap was an “opportunistic” transaction not likely to be repeated, but he agreed there are great deals available for buyers of oilfield services.
“The entire space is undervalued right now,” he said. “Drilling, pressure pumping, everybody’s got very low (stock market) valuations, ourselves included. So I’d say there are bargains everywhere.”
Since January, High Arctic Energy Services (TSX:HWO) bought Tervita’s production services division, driller Total Energy Services (TSX:TOT) won a hostile takeover bid for rival Savanna Energy Services (TSX:SVY) and fracking firms Trican Well Service (TSX:TCW) and Canyon Services Group (TSX:FRC) agreed to a share-swap merger deal worth $637 million.
In April, the Petroleum Services Association of Canada updated its drilling forecast for 2017 to 6,680 wells, a 60 per cent increase over its November forecast. It attributed the change to stronger crude prices after the Organization of Petroleum Exporting Countries and other nations agreed to curtail production in December.
Since then, however, higher American production has weighed on prices.
Oilfield services analyst Aaron MacNeil of AltaCorp Capital said increased oilfield activity this winter helped Canadian service companies reactivate parked equipment, but the market is still oversupplied, making it difficult to raise prices after the deep cuts of the past two years.
“Companies below a specific size have been challenged to generate cash flow, even in a better activity scenario, so I think you’re seeing a willingness to at least have a conversation about consolidation,” he said. “You do need scale to be more profitable.”
The Canadian Association of Oilwell Drilling Contractors said its drilling membership has fallen from 45 companies to 36 since 2014, with one more likely to be lost when the Total-Savanna deal is finalized.
Spokesman John Bayko said not all of the members were lost because of the downturn — the 2015 merger of Trinidad Drilling Ltd. (TSX:TDG) and CanElson Drilling, for instance, likely would have occurred anyway — but some small drillers have dropped out as a cost-saving measure.
Follow @HealingSlowly on Twitter.
Dan Healing, The Canadian Press
FOR: PRECISION DRILLING CORPORATIONTSX SYMBOL: PDNYSE SYMBOL: PDSDate issue: May 17, 2017Time in: 5:17 PM eAttention:
CALGARY, ALBERTA–(Marketwired – May 17, 2017) – Precision Drilling Corporation
(“Precision” or “Company”) (TSX:PD)(NYSE:PDS) held it…
FOR: CUB ENERGY INC.TSX VENTURE SYMBOL: KUBDate issue: May 17, 2017Time in: 5:06 PM eAttention:
HOUSTON, TEXAS–(Marketwired – May 17, 2017) – Cub Energy Inc. (“Cub” or the
“Company”) (TSX VENTURE:KUB), a Ukraine-focused upstream oil and gas company,
…
FOR: ENERFLEX LTD.
TSX SYMBOL: EFX
Date issue: May 17, 2017
Time in: 5:01 PM e
Attention:
CALGARY, ALBERTA–(Marketwired – May 17, 2017) – The Board of Directors of
Enerflex Ltd. (TSX:EFX) (“Enerflex” or the “Company”), is pleased to announce
the appointment of Ms. Maureen Cormier Jackson and Mr. Kevin Reinhart to the
Board.
Ms. Cormier Jackson has over 35 years of executive, financial, and operational
expertise in the oil and gas industry. Ms. Cormier Jackson’s career spanned
numerous roles at Suncor Energy Inc. which provided experience in the areas of
accounting and financial controls, environment, health, and safety (EHS),
project management, and ultimately as Senior Vice President, Chief Process and
Information Officer. Ms. Cormier Jackson is retired and currently serves on
Penn West Petroleum Ltd.’s Board of Directors. Ms. Cormier Jackson is a
Chartered Professional Accountant and resides in Calgary, Alberta.
Mr. Reinhart brings to Enerflex extensive executive and financial experience in
international energy company operations. After an early career in public
accounting, Mr. Reinhart joined Nexen Inc. and held a number of senior roles in
financial reporting, treasury, risk management, corporate planning, and
business development before becoming Nexen’s Chief Financial Officer and
ultimately interim President and Chief Executive Officer. Mr. Reinhart’s
extensive international expertise will bring additional strength to Enerflex.
Mr. Reinhart is retired and has served as a director of three publicly-listed
companies. He is a Chartered Professional Accountant and resides in Calgary,
Alberta.
“Ms. Cormier Jackson and Mr. Reinhart bring enhanced depth to our Board with
their extensive experience in energy sector accounting, finance, major
projects, risk management, and international business,” said Stephen J.
Savidant, Chairman of the Enerflex Board of Directors. “We are very pleased to
have the benefit of that experience and to expand the Board to support our
growth.”
Ms. Cormier Jackson and Mr. Reinhart join the current slate of Enerflex
directors comprised of Messrs. Robert S. Boswell, W. Bryon Dunn, J. Blair
Goertzen, H. Stanley Marshall, Stephen J. Savidant, and Michael A. Weill and
Ms. Helen J. Wesley.
About Enerflex
Enerflex Ltd. is a single source supplier of natural gas compression, oil and
gas processing, refrigeration systems, and electric power generation equipment
– plus related engineering and mechanical service expertise. The Company’s
broad in-house resources provide the capability to engineer, design,
manufacture, construct, commission, and service hydrocarbon handling systems.
Enerflex’s expertise encompasses field production facilities, compression and
natural gas processing plants, refrigeration systems, and electric power
equipment servicing the natural gas production industry.
Headquartered in Calgary, Canada, Enerflex has approximately 1,800 employees
worldwide. Enerflex, its subsidiaries, interests in associates, and
joint-ventures operate in Canada, the United States, Argentina, Bolivia,
Brazil, Colombia, Mexico, Peru, Australia, the United Kingdom, the United Arab
Emirates, Oman, Bahrain, Indonesia, Malaysia, and Thailand. Enerflex’s shares
trade on the Toronto Stock Exchange under the symbol “EFX”. For more
information about Enerflex, go to www.enerflex.com.
– END RELEASE – 17/05/2017
For further information:
For investor and media inquiries, please contact:
Enerflex Ltd.
J. Blair Goertzen
President & Chief Executive Officer
403.236.6852
OR
Enerflex Ltd.
D. James Harbilas
Executive Vice President & Chief Financial Officer
403.236.6857
www.enerflex.com
COMPANY:
FOR: ENERFLEX LTD.
TSX SYMBOL: EFX
INDUSTRY: Energy and Utilities – Equipment, Energy and Utilities –
Oil and Gas
RELEASE ID: 20170517CC0077
Press Release from Marketwired 1-866-736-3779
All press releases are written by the client and have NO affiliation with the news copy written by The Canadian Press. Any questions that arise due to the content or information provided in the press release should be directed to the company/organization
issuing the release, not to The Canadian Press.
FOR: JUST ENERGY GROUP INC.
NYSE SYMBOL: JE
TSX SYMBOL: JE
Date issue: May 17, 2017
Time in: 5:00 PM e
Attention:
Fiscal 2017 Base EBITDA of $224.5 million increases 8%
Achieves targeted net debt ratio of 1.8x
Provides fiscal 2018 guidance
TORONTO, ONTARIO–(Marketwired – May 17, 2017) – Just Energy Group, Inc.
(TSX:JE)(NYSE:JE), a leading retail energy provider specializing in electricity
and natural gas commodities, energy efficiency solutions, and renewable energy
options, today announced results for its fourth quarter and full fiscal year
2017.
Key Fiscal 2017 Highlights:
/T/
— Sales of $3,757.1 million decreased 8% from sales of $4,105.9 million in
the prior year, primarily a result of the decrease in customer base and
lower impact from foreign currency translation.
— Total attrition rate improved to 15% and the total renewal rate improved
to 65% during fiscal 2017.
— Gross margin of $696.0 million decreased 1% year-over-year, driven by a
mix of factors related to foreign currency and the decrease in customer
base, partially offset by higher margin realization resulting from
ongoing margin improvement initiatives.
— Base EBITDA of $224.5 million increased 8% year-over-year. 2017 Base
EBITDA includes $11.3 million of additional prepaid commission expense
compared to last year, excluding this additional expense item, Base
EBITDA increased 14% to $235.8 million in fiscal 2017.
— Base Funds from Operations (“Base FFO”) of $127.8 million decreased 8%
from the $138.2 million reported in the prior year. The payout ratio on
Base Funds from Operations for fiscal 2017 was 60%.
— Cash and short-term investments were $83.6 million as of year ended
March 31, 2017, a decrease of 34% from $127.6 million reported in the
previous year, primarily attributable to the redemption of long-term
debt during fiscal 2017.
— Long-term debt of $498.1 million as of March 31, 2017 decreased 25% from
$660.5 million as of March 31, 2016. Book value of net debt was 1.8x for
the Base EBITDA, significantly improved from 2.6x just one year ago.
Financial highlights
For the three months ended March 31
(thousands of dollars, except where indicated and per share amounts)
% increase
Fiscal 2017 (decrease) Fiscal 2016
Sales $ 947,281 (12)% $ 1,075,880
Gross margin 175,412 (14)% 204,289
Administrative expenses 32,448 (34)% 49,504
Selling and marketing expenses 53,727 (14)% 62,259
Finance costs (net of non-cash
finance charges) 12,279 (25)% 16,436
Profit (loss)(1) (38,220) NMF(3) 30,893
Profit (loss) per share available
to shareholders – basic (0.30) 0.16
Profit (loss) per share available
to shareholders – diluted (0.30) 0.14
Dividends/distributions 20,344 9% 18,730
Base EBITDA(2) 75,018 11% 67,345
Base Funds from Operations(2) 28,588 (35)% 43,822
Payout ratio on Base Funds from
Operations(2) 71% 43%
Total gross customer (RCE)
additions 228,000 (10)% 253,000
Total net customer (RCE) additions (25,000) 47% (47,000)
For the years ended March 31
(thousands of dollars, except where indicated and per share amounts)
% increase
Fiscal 2017 (decrease) Fiscal 2016
——————————————
Sales $ 3,757,054 (8)% 4,105,860
Gross margin 695,971 (1)% 702,288
Administrative expenses 168,433 (1)% 170,330
Selling and marketing expenses 226,308 (12)% 257,349
Finance costs (net of non-cash
finance charges) 54,879 (4)% 57,069
Profit(1) 470,883 NMF(3) 82,494
Profit (loss) per share available
to shareholders – basic 3.02 0.44
Profit (loss) per share available
to shareholders – diluted 2.42 0.43
Dividends/distributions 76,751 3% 74,792
Base EBITDA(2) 224,499 8% 207,629
Base Funds from Operations(2) 127,758 (8)% 138,199
Payout ratio on Base Funds from
Operations(2) 60% 54%
Embedded gross margin(2) 1,757,000 (8)% 1,917,600
Total customers (RCEs) 4,202,000 (7)% 4,520,000
—————————————————————————-
(1)Profit (loss) includes the impact of unrealized gains (losses), which
represents the mark to market of future commodity supply acquired to cover
future customer demand. The supply has been sold to customers at fixed
prices, minimizing any realizable impact of mark to market gains and
losses.
(2)See the definition included in Just Energy’s Management’s Discussion and
Analysis
(3)Not a meaningful figure.
/T/
“Fiscal 2017 was an important year for Just Energy from a financial,
operational, and strategic positioning perspective,” commented Just Energy’s
Co-CEO, Deb Merril. “Our business performed well, delivering solid earnings
growth while generating meaningful cash flow. In parallel with our strong
results, we pursued several strategic measures to position the Company for
continued long-term success.”
“For the fiscal year, we achieved our guidance; overcoming a tough comparison
to the strong 2016, and our attrition rate continued to improve. We also
achieved a dividend payout ratio of 60% and a net debt to Base EBITDA ratio of
1.8x, and both important metrics are now well within our targeted ranges. We
achieved these objectives while navigating a difficult market environment where
we are experiencing lower than anticipated levels of customer switching
activity due to relative price stability in gas and electricity markets, and
the effect of increased competition that typically occurs in
low-commodity-price environments. Our business is healthy and able to withstand
prolonged periods such as 2017, without hindering our ability to pursue our
long-term strategy.”
Co-CEO, James Lewis added, “We are experiencing great customer acceptance of
our growing product suite, new channels and long-term loyalty programs, and our
geographic expansion efforts remain on track. Our attrition rate in the
Consumer and Commercial businesses improved two percentage points during the
year, and our total renewal rate improved three percentage points during the
year. These improvements are a reflection of initiatives undertaken to improve
our products, margin and customer experience. The momentum of improvements to
gross and net additions for the fourth quarter indicates we are on track to
return to positive customer growth in fiscal 2018 and beyond.”
“We are entering an exciting time for Just Energy. We have successfully
transformed the profitability profile of the business, while also repairing our
balance sheet and overall financial position. These successes allow us to pivot
from a period of internal repair to a period of investing in our prolonged
growth. We enter fiscal 2018 capable of delivering more value to customers than
ever in our history and we are squarely on the path to future sustained growth.”
Co-CEO, Deb Merril concluded, “Looking ahead, we are aggressively pursuing a
growth strategy centred on increasing the number of customer contracts,
expanding our geographic presence, transforming our brand, enhancing our sales
channels, pursuing strategic acquisitions, and providing new products and
structures that meet the changing needs of today’s consumers.”
“In fiscal 2018, we believe we will achieve net customer additions and deliver
Base EBITDA in the range of $210 million to $220 million. While the Base EBITDA
guidance reflects a decline over 2017 results, it demonstrates solid
performance in our base business combined with significant investment in the
form of up-front commissions related to customer growth, investments to seed
our new international operations, and further investments in product and
geographic growth initiatives. Looking to fiscal 2019 and beyond, we believe
the business will return to growth as the successful execution of our strategy
continues to generate great interest in our offerings and results in sustained
growth.”
Fourth Quarter Operating Performance
To view the Fourth Quarter Operating Performance chart, please visit the
following link: http://media3.marketwire.com/docs/JustEnergyChart1.pdf.
/T/
— Sales decreased by 12% to $947.3 million from $1,075.9 million recorded
in the fourth quarter of fiscal 2016 reflecting the 8% decrease in
customer base of the Consumer gas division and lower impact from foreign
currency translation, offset by improvements in the Commercial
division’s customer base.
— Gross margin was $175.4 million, a decrease of 14% from the prior
comparable quarter. The decrease is attributable to decline in the
Consumer gas division’s customer base and a $9.6 million decrease from
the impact of foreign currency, partially offset by gross margin
improvement initiatives in the Commercial division.
— Administrative expenses decreased by 34% from $49.5 million to $32.4
million as a result of lower employee-related expenses, a decrease in
legal provisions, and impact from foreign currency translation.
— Selling and marketing expenses were $53.7 million, a 14% decrease from
$62.3 million reported in the prior comparable quarter. This decrease is
largely attributable to lower commission expense due to a reduction in
gross customer additions in the current quarter, as well as decreased
residual commission costs.
— Total finance costs amounted to $16.7 million, a decrease of 18% from
$20.3 million last year. The lower finance costs was a result of the 25%
decrease in long-term debt.
— Base EBITDA was $75.0 million, an 11% increase from $67.3 million in the
prior comparable quarter. The Company’s reported Base EBITDA for the
fourth quarter of fiscal 2017 includes $2.1 million less prepaid
commission expenses as well as a net decrease of $0.7 million resulting
from the impact of foreign currency translation.
— Base FFO was $28.6 million, down 35% compared to $43.8 million in 2016
as a result of higher income taxes from the exhaustion of non-capital
loss carry forward in both Canada and the U.K.
/T/
Fiscal 2017 Operating Performance
To view the Fiscal 2017 Operating Performance chart, please visit the following
link: http://media3.marketwire.com/docs/JustEnergyChart2.pdf.
/T/
— Sales for fiscal year 2017 was $3,757.1 million, an 8% decrease from the
prior year. The Consumer and Commercial divisions’ sales decreased by 4%
and 13%, respectively, due to the 7% decrease in customer base and the
decrease associated with foreign currency translation.
— Gross margin for fiscal year 2017 was $696.0 million, a 1% decrease from
the prior year, driven by unfavorable foreign exchange and partially
offset by margin improvement initiatives. Gross margin for the Consumer
division decreased to $512.9 million, down 5%, and the gross margin for
the Commercial division increased by 12% to $183.1 million.
— Just Energy continued to add new customers at higher margins than
customers lost during the fiscal year through attrition and renewals, as
illustrated in the table below.
ANNUAL GROSS MARGIN PER RCE
Fiscal Number of Fiscal Number of
2017 customers 2016 customers
—————————————–
Consumer customers added and
renewed $ 207 881,000 $ 207 888,000
Consumer customers lost 197 552,000 196 592,000
Commercial customers added and
renewed 84 867,000 84 1,202,000
Commercial customers lost 79 605,000 66 732,000
—————————————–
— Administrative expenses for fiscal year 2017 decreased by 1% from $170.3
million to $168.4 million as a result of lower employee-related expenses
and a decrease in legal provision accruals. Selling and marketing
expenses for fiscal year 2017 were $226.3 million, a 12% decrease from
$257.3 million reported in the prior year. The decrease in selling and
marketing expenses is due to lower commission costs associated with
lower gross customer additions, as well as decreased residual commission
expenses
— Total finance costs for fiscal year 2017 were $78.1 million, an increase
of 8% from $72.5 million in the prior year. The increase in finance
costs was largely a result of the loss of $4.4 million on the redemption
of the 6.0% convertible debentures as well as the additional $2.9
million one-time interest cost associated with early redemption of the
senior unsecured notes.
— Base EBITDA was $224.5 million for fiscal year 2017, an increase of 8%
from $207.6 million in the prior year.
— Base EBITDA for fiscal year 2017 includes $29.2 million of prepaid
commission expenses, an increase from $17.9 million included in the
prior year. Excluding this incremental $11.3 million of selling
expense, Base EBITDA increased by 14% to $235.8 million in
comparison to $207.6 million reported for the prior year.
/T/
Customer Aggregation
/T/
April 1, Failed to March 31, %
2016(1) Additions Attrition renew 2017 decrease
—————————————————————————-
Consumer
Energy
Gas 661,000 120,000 (131,000) (39,000) 611,000 (8)%
Electricity 1,234,000 335,000 (263,000) (120,000) 1,186,000 (4)%
—————————————————————————-
Total Consumer
RCEs 1,895,000 455,000 (394,000) (159,000) 1,797,000 (5)%
—————————————————————————-
Commercial
Energy
Gas 251,000 54,000 (22,000) (22,000) 261,000 4%
Electricity 2,374,000 330,000 (168,000) (392,000) 2,144,000 (10)%
—————————————————————————-
Total
Commercial
RCEs 2,625,000 384,000 (190,000) (414,000) 2,405,000 (8)%
—————————————————————————-
Total RCEs 4,520,000 839,000 (584,000) (573,000) 4,202,000 (7)%
—————————————————————————-
(1)The balance as at April 1, 2016 has been adjusted for customers who
have either grown above 15 RCEs (becoming a Commercial customer) or have
fallen below 15 RCEs (becoming a Consumer customer) during the fiscal
year 2016. At the beginning of each fiscal year, Just Energy will adjust
the opening balances to reflect any changes in allocation of customers
between the Consumer and Commercial divisions as a result of the
increases or decreases in the annual consumption.
— Just Energy’s total RCE base is currently 4.2 million, a 7% decrease
from one year ago. The Consumer base also includes 55,000 smart
thermostats that are bundled with a commodity contract and tend to have
lower attrition and higher overall profitability. Further expansion of
smart-thermostats continues to be a key driver for growth for Just
Energy.
— Net RCE additions for the fourth quarter of 2017 increased 47% year-
over-year. The increase in the net RCE additions was primarily the
result of strong customer additions in the U.K. market. Sequentially,
net RCE additions improved 70% from a negative 84,000 net additions in
the third quarter of 2017 to a negative 25,000 net additions in the
fourth quarter of 2017, with positive net RCE additions in the Consumer
division.
— Gross RCE additions in fiscal 2017 were 839,000, a decrease of 28%
compared to 1,158,000 RCEs added in fiscal 2016.
— Consumer RCE additions of 455,000 decreased 13% from the 523,000
added in the prior year, primarily due to market conditions as the
commodity prices were lower and, therefore, more competitive across
all markets as well as a decrease in RCE additions through door-to
door-marketing.
— Commercial RCE additions of 384,000 decreased from the 635,000 gross
RCE additions in the prior year as a result of competitiveness in
pricing and a more disciplined pricing strategy
— Just Energy’s geographical footprint continues to diversify outside of
North America. During fiscal year 2017, the U.K. operations increased
their RCE base by 14% to 350,000 RCEs with strong growth for the
Consumer RCE bases.
— Net RCE additions were a negative 318,000 for fiscal 2017, down from net
additions of negative 166,000 in 2016, primarily as a result of the
lower RCE additions in North America.
— The combined attrition rate for Just Energy was 15% for the year, a one
percentage point decrease from the 16% reported a year prior.
— Both the Consumer and Commercial attrition rates decreased two
percentage points to 24% and 7%, respectively. Both decreases are a
result of Just Energy’s focus on becoming the customers’ “trusted
advisor” and providing a variety of energy management solutions to
its customer base to drive customer loyalty.
— The renewal rate for fiscal 2017 was 65%, up three percentage points
from 62% in fiscal 2016.
— The Consumer renewal rate increased by five percentage points to
79%, while the Commercial renewal rate decreased by one percentage
point to 56%. The decline in Commercial renewal rates reflected a
very competitive market for Commercial renewals with competitors
pricing aggressively and Just Energy’s focus on improving retained
customers’ profitability rather than pursuing low margin growth.
/T/
Balance Sheet & Liquidity
The Company remains committed to improving its balance sheet through the
pursuit of aggressive debt reductions. As of March 31, 2017, Just Energy’s book
value net debt was 1.8x Base EBITDA, which has significantly improved from 2.6x
one year ago.
/T/
— Cash and short-term investments were $83.6 million as of year ended
March 31, 2017, a decrease of 34% from $127.6 million reported in the
previous year. The decrease in cash is primarily attributable to the
redemption of long-term debt during fiscal 2017.
— Long-term debt of $498.1 million as of March 31, 2017 decreased 25% from
$660.5 million as of March 31, 2016. This decrease is a result of the
early redemption of the 6.0% convertible debentures with a book value of
$311.0 million as at March 31, 2016 and the repayment of the remaining
$80 million on the senior unsecured notes, offset by the issuance of the
6.75% convertible debentures with a book value of $145.6 million and a
withdrawal of $68.3 million on the credit facility.
— Base FFO for fiscal year 2017 were $127.8 million, a decrease of 8%
compared with $138.2 million in the prior fiscal year. Base FFO
decreased due to higher current income taxes resulting from increased
taxable income in Canada and the U.K. coupled with full utilization of
loss carry forwards in prior years and an additional one-time finance
cost of $2.9 million related to the repayment of the senior unsecured
notes.
— The payout ratio on Base FFO was 60% for fiscal year 2017, compared to
54% reported in fiscal 2016.
— Dividends and distributions for fiscal year 2017 were $76.8 million, an
increase of 3% from the prior fiscal year, reflecting the initiation of
dividend payments to preferred shareholders following the issuance in
February 2017, which amounted to $1.7 million.
/T/
Outlook
Just Energy continues to deploy its strategy to become a world-class consumer
enterprise delivering superior value to its customers through a range of energy
management solutions and a multi-channel approach. Growth plans centre on
geographic expansion, structuring superior product value propositions, and
enhancing the portfolio of energy management offerings.
In fiscal 2018, management believes that the Company will deliver Base EBITDA
in the range of $210 million to $220 million. These expectations reflect
continued solid performance in the base business, offset by significant
investments to seed Just Energy’s international operations, further investments
in product and geographic growth initiatives, and up-front commissions related
to customer growth in fiscal 2018.
While the opex investments in growth will present a challenge to fiscal 2018,
management expects to still return to growth in Base EBITDA for fiscal 2019 and
beyond, returning to the double-digit percentage growth as delivered in the
past. This expectation is in line with Just Energy’s previous performance under
the current leadership team (fiscal 2015-2017) when the Company delivered a
Base EBITDA CAGR of 10.2% or 14.8% prior to the deduction related to Commercial
customer acquisition costs.
The Company’s balance sheet improvement initiatives have resulted in
significantly improved debt ratios, and management remains committed to
maintaining these levels throughout this period of growth investment.
The repositioned business model has improved the Company’s ability to drive
profitability and cash generation, thus providing management with the
confidence and freedom to commit to future dividend distributions at the
current $0.50 per common share level and to maintain the preferred shares
dividend.
Earnings Call
The Company will host a conference call and live webcast to review the fourth
quarter results beginning at 10:00 a.m. Eastern Standard Time on May 18th, 2017
followed by a question and answer period. Rebecca MacDonald, Executive Chair,
President & Co-Chief Executive Officers James Lewis and Deb Merril, and Chief
Financial Officer Pat McCullough will participate on the call.
Just Energy Conference Call and Webcast
/T/
— Thursday, May 18th, 2017
— 10:00 a.m. EST
/T/
Those who wish to participate in the conference call may do so by dialing
1-888-465-5079 and entering pass code 7009356#. The call will also be webcast
live over the internet at the following link:
http://event.onlineseminarsolutions.com/wcc/r/1357730-1/5FF4034F544B855A5723B091
5E568910
An audio tape rebroadcast will be available starting at 12:30 p.m. EST May
18th, 2017 until June 17th, 2017 at 11:59 p.m. EST. To access the rebroadcast
please dial 1-888-843-7419 and enter the participant code 7009356#.
About Just Energy Group Inc.
Established in 1997, Just Energy (NYSE:JE)(TSX:JE) is a leading retail energy
provider specializing in electricity and natural gas commodities, energy
efficiency solutions, and renewable energy options. With offices located across
the United States, Canada, the United Kingdom and Germany, Just Energy serves
approximately two million residential and commercial customers providing homes
and businesses with a broad range of energy solutions that deliver comfort,
convenience and control. Just Energy Group Inc. is the parent company of Amigo
Energy, Green Star Energy, Hudson Energy, Just Energy Solar, Tara Energy and
TerraPass.
FORWARD-LOOKING STATEMENTS
Just Energy’s press releases may contain forward-looking statements including
statements pertaining to customer revenues and margins, customer additions and
renewals, customer attrition, customer consumption levels, general and
administrative expenses, dividends, distributable cash and treatment under
governmental regulatory regimes. These statements are based on current
expectations that involve a number of risks and uncertainties which could cause
actual results to differ from those anticipated. These risks include, but are
not limited to levels of customer natural gas and electricity consumption,
rates of customer additions and renewals, rates of customer attrition,
fluctuations in natural gas and electricity prices, changes in regulatory
regimes and decisions by regulatory authorities, competition and dependence on
certain suppliers. Additional information on these and other factors that could
affect Just Energy’s operations, financial results or dividend levels are
included in Just Energy’s annual information form and other reports on file
with Canadian securities regulatory authorities which can be accessed through
the SEDAR website at www.sedar.com, on the U.S. Securities Exchange
Commission’s website at www.sec.gov or through Just Energy’s website at
www.justenergygroup.com.
Neither the Toronto Stock Exchange nor the New York Stock Exchange has approved
nor disapproved of the information contained herein.
– END RELEASE – 17/05/2017
For further information:
Pat McCullough
Chief Financial Officer
Just Energy
713-933-0895
pmccullough@justenergy.com
OR
Michael Cummings
Investor Relations
Alpha IR Group
617-461-1101
michael.cummings@alpha-ir.com
COMPANY:
FOR: JUST ENERGY GROUP INC.
NYSE SYMBOL: JE
TSX SYMBOL: JE
INDUSTRY: Energy and Utilities – Oil and Gas , Financial Services –
Personal Finance
RELEASE ID: 20170517CC0076
Press Release from Marketwired 1-866-736-3779
All press releases are written by the client and have NO affiliation with the news copy written by The Canadian Press. Any questions that arise due to the content or information provided in the press release should be directed to the company/organization
issuing the release, not to The Canadian Press.
FOR: ENBRIDGE GAS DISTRIBUTION INC.
Date issue: May 17, 2017Time in: 2:23 PM eAttention:
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