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Suncor CEO encouraged by Trans Mountain pipeline, less sure of Keystone XL's completion – CBC.ca

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The chief executive of one of the country’s largest energy companies has more faith in the federal government’s Trans Mountain expansion project being completed, compared with the Keystone XL pipeline, which has Alberta government backing.

That’s based on comments by Suncor Energy’s Mark Little on Thursday morning during a conference call with the investment community about the plethora of pipeline developments recently, including regulatory and court decisions.

Little was encouraged about the Trans Mountain expansion project, which recently cleared a major court hurdle when the Supreme Court dismissed an appeal by First Nations in B.C. Construction in Alberta and British Columbia continues on the pipeline, which will transport oil from Edmonton to the Vancouver area.

“Trans Mountain is looking better than it ever has,” he said. “They’re talking about it being on in late 2022. If it’s 2022 or out to mid-2023, it’s in good shape.”

About the prospects of Keystone XL, Little sounded less optimistic.

Earlier this month, a U.S. Supreme Court decision supported a lower court ruling that blocked a key environmental permit for the controversial Keystone XL pipeline — a decision that will continue to delay large portions of construction on the 1,947-kilometre project that stretches from Alberta to the U.S. gulf coast.

Asked by an analyst during the conference call to assess various pipeline projects, Little chuckled as he brought up Keystone XL.

“And then Keystone XL,” he laughed. “I don’t know, seems like it’s becoming a significant part of the discussion on the politics side.”

Listen to the analyst’s question followed by Mark Little’s response about recent pipeline developments:

The latest court ruling is just another setback for the project, which was first announced in 2008 and is being built by Calgary-based TC Energy Corp.  

“[TC Energy is] working through these latest court rulings, so it’s delaying any of the construction across the waterways, but I think if you go talk to TC, they’re still plowing ahead and working hard to make this thing happen, so there’s lots of resolve there to keep going,” Little said.

Some experts have said there is less than a 50 per cent chance the project is actually completed, especially considering the U.S. presidential election later this year.

U.S. President Donald Trump signed an executive order to advance construction of the Keystone XL pipeline in Washington on Jan. 24, 2017. (Kevin Lamarque/Reuters)

U.S. President Donald Trump has been a strong supporter of the Keystone XL project, but his opponent, Democratic nominee Joe Biden, has said he would tear up Trump’s approval of the pipeline if he wins the White House. 

Alberta Premier Jason Kenney has praised the project for the potential job creation in the province and the additional export capacity it would provide to oil producers.

The Alberta government has invested $1.5 billion in the Keystone XL pipeline, plus $6 billion in loan guarantees.

TC Energy has said it will continue building the Canadian leg of the project while fighting the legal battle south of the border.

Alberta Premier Jason Kenney marked the start of construction of the Keystone XL pipeline in the town of Oyen earlier this month. (Flickr/Alberta Government)

The federal government purchased the Trans Mountain project in 2018, as developer Kinder Morgan said it faced too much uncertainty with the proposal.

Before the sale, the company had temporarily halted work as opposition escalated, particularly from the British Columbia government.

Suncor has committed to using both pipelines to ship oil out of Alberta. 

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Japan’s SoftBank returns to profit after gains at Vision Fund and other investments

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TOKYO (AP) — Japanese technology group SoftBank swung back to profitability in the July-September quarter, boosted by positive results in its Vision Fund investments.

Tokyo-based SoftBank Group Corp. reported Tuesday a fiscal second quarter profit of nearly 1.18 trillion yen ($7.7 billion), compared with a 931 billion yen loss in the year-earlier period.

Quarterly sales edged up about 6% to nearly 1.77 trillion yen ($11.5 billion).

SoftBank credited income from royalties and licensing related to its holdings in Arm, a computer chip-designing company, whose business spans smartphones, data centers, networking equipment, automotive, consumer electronic devices, and AI applications.

The results were also helped by the absence of losses related to SoftBank’s investment in office-space sharing venture WeWork, which hit the previous fiscal year.

WeWork, which filed for Chapter 11 bankruptcy protection in 2023, emerged from Chapter 11 in June.

SoftBank has benefitted in recent months from rising share prices in some investment, such as U.S.-based e-commerce company Coupang, Chinese mobility provider DiDi Global and Bytedance, the Chinese developer of TikTok.

SoftBank’s financial results tend to swing wildly, partly because of its sprawling investment portfolio that includes search engine Yahoo, Chinese retailer Alibaba, and artificial intelligence company Nvidia.

SoftBank makes investments in a variety of companies that it groups together in a series of Vision Funds.

The company’s founder, Masayoshi Son, is a pioneer in technology investment in Japan. SoftBank Group does not give earnings forecasts.

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Trump campaign promises unlikely to harm entrepreneurship: Shopify CFO

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Shopify Inc. executives brushed off concerns that incoming U.S. President Donald Trump will be a major detriment to many of the company’s merchants.

“There’s nothing in what we’ve heard from Trump, nor would there have been anything from (Democratic candidate) Kamala (Harris), which we think impacts the overall state of new business formation and entrepreneurship,” Shopify’s chief financial officer Jeff Hoffmeister told analysts on a call Tuesday.

“We still feel really good about all the merchants out there, all the entrepreneurs that want to start new businesses and that’s obviously not going to change with the administration.”

Hoffmeister’s comments come a week after Trump, a Republican businessman, trounced Harris in an election that will soon return him to the Oval Office.

On the campaign trail, he threatened to impose tariffs of 60 per cent on imports from China and roughly 10 per cent to 20 per cent on goods from all other countries.

If the president-elect makes good on the promise, many worry the cost of operating will soar for companies, including customers of Shopify, which sells e-commerce software to small businesses but also brands as big as Kylie Cosmetics and Victoria’s Secret.

These merchants may feel they have no choice but to pass on the increases to customers, perhaps sparking more inflation.

If Trump’s tariffs do come to fruition, Shopify’s president Harley Finkelstein pointed out China is “not a huge area” for Shopify.

However, “we can’t anticipate what every presidential administration is going to do,” he cautioned.

He likened the uncertainty facing the business community to the COVID-19 pandemic where Shopify had to help companies migrate online.

“Our job is no matter what comes the way of our merchants, we provide them with tools and service and support for them to navigate it really well,” he said.

Finkelstein was questioned about the forthcoming U.S. leadership change on a call meant to delve into Shopify’s latest earnings, which sent shares soaring 27 per cent to $158.63 shortly after Tuesday’s market open.

The Ottawa-based company, which keeps its books in U.S. dollars, reported US$828 million in net income for its third quarter, up from US$718 million in the same quarter last year, as its revenue rose 26 per cent.

Revenue for the period ended Sept. 30 totalled US$2.16 billion, up from US$1.71 billion a year earlier.

Subscription solutions revenue reached US$610 million, up from US$486 million in the same quarter last year.

Merchant solutions revenue amounted to US$1.55 billion, up from US$1.23 billion.

Shopify’s net income excluding the impact of equity investments totalled US$344 million for the quarter, up from US$173 million in the same quarter last year.

Daniel Chan, a TD Cowen analyst, said the results show Shopify has a leadership position in the e-commerce world and “a continued ability to gain market share.”

In its outlook for its fourth quarter of 2024, the company said it expects revenue to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.

“Q4 guidance suggests Shopify will finish the year strong, with better-than-expected revenue growth and operating margin,” Chan pointed out in a note to investors.

This report by The Canadian Press was first published Nov. 12, 2024.

Companies in this story: (TSX:SHOP)

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RioCan cuts nearly 10 per cent staff in efficiency push as condo market slows

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TORONTO – RioCan Real Estate Investment Trust says it has cut almost 10 per cent of its staff as it deals with a slowdown in the condo market and overall pushes for greater efficiency.

The company says the cuts, which amount to around 60 employees based on its last annual filing, will mean about $9 million in restructuring charges and should translate to about $8 million in annualized cash savings.

The job cuts come as RioCan and others scale back condo development plans as the market softens, but chief executive Jonathan Gitlin says the reductions were from a companywide efficiency effort.

RioCan says it doesn’t plan to start any new construction of mixed-use properties this year and well into 2025 as it adjusts to the shifting market demand.

The company reported a net income of $96.9 million in the third quarter, up from a loss of $73.5 million last year, as it saw a $159 million boost from a favourable change in the fair value of investment properties.

RioCan reported what it says is a record-breaking 97.8 per cent occupancy rate in the quarter including retail committed occupancy of 98.6 per cent.

This report by The Canadian Press was first published Nov. 12, 2024.

Companies in this story: (TSX:REI.UN)

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