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Record profits for oil companies should be invested in climate action: Guilbeault

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OTTAWA — Canada’s big oil companies are making record profits this year and should be using some of that extra cash to invest in things that curb their greenhouse gas emissions, Environment Minister Steven Guilbeault said Thursday.

His remarks come a week after Cenovus CEO Alex Pourbaix told analysts during a company conference call that a new federal tax credit isn’t good enough to convince the major oilsands producers to start building a proposed carbon capture and storage project.

Carbon capture and storage traps emissions at their source and funnels them back underground or into products that can permanently store them, such as cement. The technology is controversial, with many climate scientists arguing it is unproven, expensive and allows fossil fuel production to continue.

The new refundable investment tax credit introduced in the recent federal budget is worth 50 to 60 per cent of the investment for carbon capture, and 37.5 per cent for transportation, storage or use of the emissions.

Projects that go to enhanced oil recovery — where the captured emissions are used to squeeze more oil out of the ground — won’t qualify.

The tax credit will provide an estimated $2.6 billion over the next five years, and $1.5 billion annually after that until 2030.

Last year the Canadian Association of Petroleum Producers asked Ottawa to design the tax credit so it pays for 75 per cent of the cost of carbon capture projects.

Pourbaix said the industry will need more than what was offered to move on the investments.

But Guilbeault said in an interview Thursday that isn’t going to happen.

“We won’t be putting even more and more money on the table,” he said. “They have to invest as well.”

He said Pourbaix’s comments are disappointing and that it’s time for industry to come to the table to show what it plans to invest to protect its future in a world where demand for oil and gas diminishes — and demand for unabated oil and gas diminishes faster.

“We want to invest in your sector to ensure that the sector and workers still have jobs, 10, 15 years from now, when more and more, the world will be moving toward a low-carbon future,” Guilbeault said. “So we’re putting our money where our mouth is, and we think that they should do the same.”

And he said they have the money to do it. The same day Pourbaix talked about the tax credit, Cenovus reported its best first-quarter profit ever, of $1.6 billion. A year ago, profits were $220 million.

Cenovus has not yet responded to a request for comment.

The company is not alone, with the price of oil being driven up by the war in Ukraine, pandemic-related supply chain issues and surging demand as pandemic lockdowns ease. Imperial Oil reported first quarter profits of $1.17 billion, its best first quarter in 30 years. On Thursday, Canadian Natural Resources Ltd. reported profits of $3.1 billion, compared with $1.38 billion a year ago.

“These companies are making record profits, they should be investing some of them into ensuring that they have a future,” Guilbeault said.

Last week, Pourbaix said oil prices rise and fall so decisions about investing in carbon capture can’t be based on current prices.

“Oil prices right now are obviously very attractive, but we know probably before that project is ever in service, we’ll probably test the bottom end of those prices again,” he said.

The oil and gas sector produced more than one-quarter of Canada’s total emissions in 2020. Ottawa is currently estimating the sector must cut its emissions almost 40 per cent from 2020 levels by 2030 if Canada is to meet its current emissions target.

An RBC analysis released last week said cutting oilsands emissions 40 per cent by 2030 will cost between $45 billion and $65 billion.

Guilbeault said the industry has invested to cut its emissions. Although production increases mean overall emissions have risen, emissions per barrel are down 11 per cent between 2005 and 2020 industry-wide, and in the oilsands alone they’re down 12 per cent.

“So they have invested in efficiency over the last few years and more than a few,” he said. “I think the question now is, is it enough? And the answer to that is clearly no.”

Earlier this year, more than 400 climate scientists wrote to Finance Minister Chrystia Freeland urging her not to proceed with the tax credit because the technology is unproven, expensive and a massive subsidy to the oil and gas industry.

At a committee hearing in Ottawa earlier this week, NDP MP Laurel Collins demanded Guilbeault hear that plea.

“This is absolutely the wrong direction,” she said. “Why are you not listening to them?”

This report by The Canadian Press was first published May 5, 2022.

 

Mia Rabson, The Canadian Press

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My Boy Prince to race against older horses in $1-million Woodbine Mile

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TORONTO – He’s firmly among Canada’s top three-year-olds but My Boy Prince faces a stiff test Saturday at Woodbine Racetrack.

The ’24 King’s Plate runner-up will be part of a global field in the $1-million Woodbine Mile turf event. Not only will it be My Boy Prince’s first race against older competition but among the seven other starters will be such horses as Naval Power (Great Britain), Big Rock (France) and Filo Di Arianna (Brazil).

My Boy Prince will race for the first time since finishing second to filly Caitlinhergrtness in the Plate on Aug. 23.

“It’s his first try against older horses and it’s hard to say where he fits in,” said trainer Mark Casse. “This time of year running a three-year-old against older horses, it’s like running a teenager against college athletes.

“We’re doing it because we believe a mile on the turf is his preferred surface … we wanted to give him a shot at this. (American owner Gary Barber) is someone who likes to think outside the box and take calculated risks so we’re going to see where he fits in.”

Casse, 16 times Canada’s top trainer, is a Hall of Famer both here and in the U.S. He’s also a two-time Woodbine Mile winner with filly Tepin (2016) and World Approval (2017).

Sahin Civaci will again ride My Boy Prince, Canada’s top two-year-old male who has six wins and 10 money finishes (6-3-1) in 11 career starts. The horse will be one of three Casse trainees in the race with Filo Di Arianna (ridden by Sovereign Award winner Kazushi Kimura) and Win for the Money (veteran Woodbine jockey Patrick Husbands aboard).

Naval Power, a four-year-old, has finished in the money in eight of nine starts (six wins, twice second) and will race in Canada for the first time. He comes to Woodbine with second-place finishes in two Grade 1 turf races.

Big Rock, another four-year-old, makes his North American debut Saturday. The horse has five wins and five second-place finishes in 14 starts but has struggled in ’24, finishing sixth, 10th and fifth in three races.

Filo Di Arianna is a four-time graded stakes winner with nine victories, three seconds and a third from 17 starts. It was Canada’s ’22 top male sprinter and champion male turf horse.

Other starters include Playmea Tune, Niagara Skyline and Secret Reserve.

Playmea Tune, a four-year-old, is trained by Josie Carrol. The gelding has made three starts, winning twice and finishing second in the Grade 3 Bold Venture on Aug. 23.

Woodbine-based Niagara Skyline is a six-year-old with 13 money finishes (six wins, five seconds, twice third) in 24-lifetime starts. The John Charlambous trainee has reached the podium (1-1-1) in all three races this year.

Secret Reserve, also a six-year-old, has finished in the money in 15-of-26 starts (six wins, one second, eight thirds). The horse, at 44-1, was third in the Grade 2 King Edward Stakes over a mile on the E.P. Taylor turf course.

The Mile highlights a stellar card featuring six graded stakes races. Also on tap are the $750,000 E.P. Taylor Stakes (fillies and mares), $500,000 bet365 Summer Stakes (two-year-olds) and $500,000 Johnnie Walker Natalma Stakes (two-year-old fillies), all Grade 1 turf events.

The Mile, Natalma and Summer winners earn automatic entries into the Breeders’ Cup at Del Mar in November.

Casse has won all four races, earning his first E.P. Taylor title last year with filly Fev Rover, Canada’s horse of the year and champion female turf horse. Fev Rover will defend her title Saturday against a field that includes Moira, the ’22 King’s Plate winner and Canada’s horse of the year trained by Woodbine’s Kevin Attard.

“It (E.P. Taylor) was definitely on my bucket list because it had eluded us,” Casse said. “But I honestly hadn’t realized I’d won all four of them, hadn’t really thought about it.”

Casse will have horses in all four turf races Saturday. Arguably the most intriguing matchup will be between Moira and Fev Rover, who ran 1-2, respectively, in a photo finish Aug. 11 in the Grade 2 Beverly D. Stakes, a 1 3/16-mile turf race, at Virginia’s Colonial Downs.

“What’s funny is the two of them went all the way to Virginia and she beat us by a nose,” Casse said. “We could’ve done that at Woodbine.

“There’s two of the best fillies in the world both from Toronto and they’re going to be competing Saturday.”

Some question having so many solid races on a single card but Casse likes the strategy.

“I think it’s a good thing,” he said. “On Saturday, the main focus on horse racing in the world will be on Woodbine and that’s because it’s such a great card.

“It’s an international day, there’s horses coming from everywhere and we’re going to do our best to represent Canada.”

This report by The Canadian Press was first published Sept. 13, 2024.



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Former world No. 1 Sharapova wins fan vote for International Tennis Hall of Fame

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NEWPORT, R.I. (AP) — Maria Sharapova, a five-time Grand Slam singles champion, led the International Tennis Hall of Fame’s fan vote her first year on the ballot — an important part to possible selection to the hall’s next class.

The organization released the voting results Friday. American doubles team Bob and Mike Bryan finished second with Canada’s Daniel Nestor third.

The Hall of Fame said tens of thousands of fans from 120 countries cast ballots. Fan voting is one of two steps in the hall’s selection process. The second is an official group of journalists, historians, and Hall of Famers from the sport who vote on the ballot for the hall’s class of 2025.

“I am incredibly grateful to the fans all around the world who supported me during the International Tennis Hall of Fame’s fan votes,” Sharapova said in a statement. “It is a tremendous honor to be considered for the Hall of Fame, and having the fans’ support makes it all the more special.”

Sharapova became the first Russian woman to reach No. 1 in the world. She won Wimbledon in 2004, the U.S. Open in 2006 and the Australian Open in 2008. She also won the French Open twice, in 2012 and 2014.

Sharapova was also part of Russia’s championship Fed Cup team in 2008 and won a silver medal at the London Olympics in 2012.

To make the hall, candidates must receive 75% or higher on combined results of the official voting group and additional percentage from the fan vote. Sharapova will have an additional three percentage points from winning the fan vote.

The Bryans, who won 16 Grand Slam doubles titles, will have two additional percentage points and Nestor, who won eight Grand Slam doubles titles, will get one extra percentage point.

The hall’s next class will be announced late next month.

___

AP tennis:

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Roots sees room for expansion in activewear, reports $5.2M Q2 loss and sales drop

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TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.

The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.

“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.

The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.

But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.

Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.

“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.

“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”

Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.

The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.

In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.

Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.

The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.

The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.

Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.

Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.

It will also re-evaluate its design ranks.

Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.

Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:ROOT)

The Canadian Press. All rights reserved.



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