Highways could be flooded with vehicles this summer as people hit the road to escape their homes and look for a change of scenery during the pandemic, experts say, regardless of prices at the pump.
Gasoline consumption is still below pre-COVID levels as many people continue to work from home, but the summer driving season is expected to be busier than normal this year.
“My family, that’s something we’ve been discussing. Where can we go, where we can do anything that is COVID-compliant but gets us out of our normal routine? I think a lot of people are having that same kind of conversation,” said Rory Johnston, managing director at Toronto-based investment firm Price Street Inc.
“I think there is a reasonable thesis for a kind of gangbusters summer.”
Typically, prices at the pump can dictate how far people are willing to travel, but Johnston doesn’t think it will be a factor this summer as most people have been able to save money because of reduced travel over the last year combined with the appeal of escaping from the city.
Gasoline prices are already above pre-COVID levels and averaged just under $1.28 per litre across the country on Tuesday, according to Natural Resources Canada.
‘Where can I go?’
“My main concern right now is not fuel prices, it’s where can I go and I think I’m not alone in that,” he said.
Considering more people are receiving the vaccine everyday, coupled with government stimulus spending, and restrictions on international travel, “you could have a very rip roaring summer” on the roads and highways, he said.
A digital sign on Highway 417 approaching downtown Ottawa tells motorists to stay home as much as possible in mid-January 2021. (Michel Aspirot/CBC)
The oil industry has similar expectations as refineries are ramping up production in anticipation of fuel demand rising this summer.
“This driving season I suspect is going to be off the charts and in terms of people wanting to get back to their life,” said Cenovus Energy chief executive Alex Pourbaix to investors on Tuesday.
The Canadian oil producer operates refineries in Canada and the U.S., in addition to the Husky gas station chain.
There is caution though, especially in Canada as vaccination rates remain low compared to the United States, many government restrictions remain in place, and the country could be entering the third wave of the pandemic.
For instance, Manitoba continues to have a public health order requiring 14 days of self-isolation for anyone arriving or returning to the province.
“What our variants going to look like? Are we going to see a full open [of the economy] in summer, fall or winter?” said Andrew Botterill, an oil and gas analyst with Deloitte.
Still, there is more optimism compared to last year since there are vaccines available, he said.
“If we’re going to do any holidays this summer, it may very well be in our vehicle and that might be the best we can do,” he said.
TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.
The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.
Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.
Consolidated comparable sales were up 0.3 per cent.
On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.
The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.
The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.
Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.
Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.
On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.
The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
TORONTO – Thomson Reuters reported its third-quarter profit fell compared with a year ago as its revenue rose eight per cent.
The company, which keeps its books in U.S. dollars, says it earned US$301 million or 67 cents US per diluted share for the quarter ended Sept. 30. The result compared with a profit of US$367 million or 80 cents US per diluted share in the same quarter a year earlier.
Revenue for the quarter totalled US$1.72 billion, up from US$1.59 billion a year earlier.
In its outlook, Thomson Reuters says it now expects organic revenue growth of 7.0 per cent for its full year, up from earlier expectations for growth of 6.5 per cent.
On an adjusted basis, Thomson Reuters says it earned 80 cents US per share in its latest quarter, down from an adjusted profit of 82 cents US per share in the same quarter last year.
The average analyst estimate had been for a profit of 76 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
