Canadian oil and gas companies to be removed from stock index
If the companies are to be removed from the index, the economic damage to the sector would be substantial.
Among those companies facing deletion from the index are: Kelt Exploration Ltd., Peyto Exploration and Development Corp., NuVista Energy Ltd., Torc Oil and Gas Ltd., Birchcliff Energy Ltd., Precision Drilling Corp., and Ensign Energy Services Inc.
The performance of these companies has fallen so low that they don’t meet requirements set by S&P who oversee the index.
“The problem is the market has just been so beat up through the summer that there just isn’t anybody listening right now to the oil and gas story,” said President and CEO of Kelt, David Wilson.
While the index providers have yet to contact individuals about a potential removal, analysts are expecting that this is the case.
“The fact is, right now, there’s such a lack of investor interest in Canadian energy equities that the stock valuations have gone soft and we’re going to fall off the index. I mean, it’s inevitable based on the numbers,” said Kevin Neveu, President and CEO of Precision Drilling.
Observers can expect an announcement over the next few days, with the potential removals taking place on September 20.
“Here we just announced Q2 results and we’re over 10 times that size [when they were introduced to the index]. It’s a bit amazing that we’re so much bigger in terms of the size of the company’s production, cash flow, reserves, everything and having delivered incredible profitability over the last 17 years and yet we’re not big enough to be on the Composite Index anymore,” said President and Ceo of Peyto Exploration, Darren Gee.
According to S&P, those companies which are reduced to less than 0.025 percent of the index are to be removed and cannot be included back into the list for another 12 months.
After causing many delays, protestors have left the Swartz Bay ferry terminal, located north of Victoria, B.C. They were blocking the terminal and denying people access on Monday.
The protestors claim to be working alongside Wet’suwet’en hereditary chiefs in attempting to cancel a liquified natural gas pipeline being implemented by Coastal GasLink. The pipeline is being built in north central B.C.
NEWS 1130 reported that the group was protesting on Highway 17 and were even in the water in kayaks too.
An online statement released by the protestors says, “In response to the recent call from the Wet’suwet’en for solidarity actions that ‘shut down rail lines, ports, and industrial infrastructure’ this action has targeted BC Ferries because of the corporation’s deepening integration with the Liquified Natural Gas (LNG) industry,”
“BC Ferries has proposed ‘upgrades’ to two of its ferries that will make them reliant on the very product that Coastal GasLink (CGL) threatens to bring through Wet’suwet’en territory.”
Dozens of protestors took part in the event and used their banners to cover signs at the terminal.
Since being proposed, the pipeline has even caused violent encounters between protestors and police.
After coming to agreements with 20 First Nation councils, Coastal GasLink is attempting to build the pipeline from northeastern B.C. all the way to Kitimat, B.C. The pipeline will reportedly stretch 670 kilometers.
According to the hereditary clan chiefs, the project can not continue without their permission.
On Monday, Deborah Marshall from BC Ferries noted, “We fully respect the rights of individuals to protest decisions that they don’t agree with, but our concern is allowing our customers to have safe and unimpeded access to our terminal.”
“At our Swartz Bay terminal right now, the lanes are blocked. The lanes leading into the terminal, so no customers are able to access the terminal at this point, so it’s affecting all of our routes sailing in and out of Swartz Bay right now.”
While some fast-food chains bemoan labour inflation in America’s hot economy, Yum! Brands Inc.–owner of Taco Bell restaurants–is taking a different approach.
Instead of belt-tightening, Taco Bell is offering $100,000-a-year salaries for managers at select Midwest and New England, U.S. locations.
The company is also increasing wages for other leadership positions and offering incentives for all employees, including 24-hours paid sick leave.
With unemployment at 3.5 percent, 50-year-low in America, competition for qualified workers is heating up in sectors previously considered entry-level employment and largely staffed by minimum wage workers.
Though fast-food outfits like California’s In-N-Out Burger have been paying managers $100,000 for a decade, the average salary for running a Burger King restaurant in United States–$45,414, according to the employment website Glassdoor–is on par with managing a McDonald’s restaurant in Canada.
The following advertisement is from Service Canada’s ‘job bank’: McDonald’s manager for one of its Burnaby B.C. locations; $48,007/year.
But according to employment website Nuevo that tracks wages across industry sectors via job postings, the median managerial wage at a Canadian fast-food restaurant is $27,300.
Based on annual wages for 961 related jobs, the best paid fast-food managers live in Alberta and make an average of $39,488/year while the lowest paid are in the Maritimes–New Brunswick, Nova Scotia and Prince Edward Island–earning $23,400
Ironically, as some U.S. fast-food chains vie for managerial staff with more competitive salaries, the industry writ large has resisted efforts in Congress to increase the federal minimum wage from $7.25/hr to $15/hr, over five years.
The National Restaurant Association, lobbyists for the fast-food sector, continue to oppose this legislation, arguing that increasing the wage price floor would put smaller operators out of business.
It’s a similar argument that Ontario businesses made against increasing minimum wages in the province and in 2018, Progressive Conservative Premier Doug Ford’s government scrapped previous policy to increase it to $15/hr in 2019.
Sales of passenger vehicles and light trucks saw a decrease of 3.6 percent in 2019 compared it 2018, according to figures by Des Rosiers Automotive Reports.
The dip marks the industry’s first year-over-year decline in over a decade, though Des Rosiers’ figures do show that 2019 remained the fourth-best sales year on record. Des Rosiers’ figures show vehicles sold last year at 1,914,357, with 109,584 sold in December.
That figure is down from 2018’s sales figure, at 1,984,992.
The sale of passenger cars dropped a whopping 16.1 percent to 484,687, though light truck sales, including sport utility vehicles, rose by 1.6 percent, to 1,429,670.
Des Rosiers highlights that 2019 saw high sales of sport utility vehicles, with figures breaking the 900,000 mark for the first time on record.
A new survey has found that British Columbians have warmed up to the Trans Mountain pipeline.
“The moment the federal government got involved and started to talk about purchasing the pipeline, it made a lot of residents move from moderate opposition to strong support,” Mario Canseco told CTV News, who serves as the president of Research Co., a Vancouver-based researcher.
The most recent figures by Canesco’s company found that 56 percent of BCers polled agree with the Trudeau government’s move to once again approve the pipeline’s expansion. 35 percent were opposed, with another 10 percent undecided.
The controversial pipeline, which has been in the news cycle for years now, would expand an already made pipeline that currently operates through Edmonton to Burnaby.
The pipeline received the following amount of support by region, as outlined by CTV:
• 51 per cent in Metro Vancouver;
• 59 per cent in the Fraser Valley;
• 49 per cent in Vancouver Island;
• 74 per cent in southern B.C.; and
• 71 per cent in northern B.C.
Those numbers, Canesco says, are for the most part, the same as previous figures, besides one key area: metro Vancouver.
Support for the pipeline in Vancouver and Vancouver island has increased “dramatically.”
“You go back three years ago and the level of opposition to the project in Vancouver Island was sky-high, and the numbers in Metro Vancouver were similar,” said Canesco.
Canesco went on to say that the shift in attitude could mainly be attributed to the Trudeau government’s purchasing of the pipeline from the U.S.-based Kinder Morgan.
“The moment the federal government got involved, it was more difficult to get that grassroots (environmental activism),” said Canesco.
“Now it’s the federal government saying it’s in the nation’s best interest, and not a company based in Texas.”