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Why Aphria Stock Jumped Today – Motley Fool

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What happened?

Aphria (NYSE:APHA) ended the week on a strong note. Shares of the Ontario-based cannabis company climbed by 11.3% on Friday, despite the company not reporting any news.

The catalyst for Aphria’s stock rising today seems to be the better-than-expected financial results Aurora Cannabis (NYSE:ACB) — one of Aphria’s peers in the marijuana industry — reported after the market closed on Thursday. Aphria is simply riding the positive wave started by its competitor. 

So what

There was little hope that Aurora Cannabis would be able to deliver strong financial results, especially after Tilray (NASDAQ:TLRY) — another big player in the marijuana industry — disappointed with its own earnings report. However, Aurora Cannabis’s net revenue of CA$78.4 million (excluding provisions of 2.9 million Canadian dollars) came in higher than the 66.7 million Canadian dollars analysts were expecting.

The cannabis company’s total net revenue also increased by 35% sequentially. These results — which are especially noteworthy considering the ongoing crisis — may have helped investors regain a little trust in the cannabis industry, which has been profoundly disappointing over the past year or so. 

Image source: Getty Images.

Now what

For its part, Aphria has consistently delivered strong financial results of late, especially when compared to its peers in the cannabis industry. For instance, in its most recent quarterly update, the company recorded a net revenue of 144.4 million Canadian dollars, a 19.8% sequential increase. Even with its gains on the market today, though, Aphria’s stock is still down by more than 30% year to date. This presents a decent buying opportunity for investors looking to buy shares of this cannabis company

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Statistics Canada says first-quarter GDP worst showing since 2009 – CityNews Vancouver

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OTTAWA (NEWS 1130) — Statistics Canada says the economy in the first quarter had its worst showing since 2009 as steps taken to slow the spread of COVID-19 forced businesses across the country to close their doors and lay off workers.

Statistics Canada says gross domestic product fell at an annualized rate of 8.2 per cent in the first three months of 2020.

The collapse came as gross domestic product for March fell 7.2 per cent as restrictions by public health officials began rolling out during the month, including school closures, border shutdowns and travel restrictions.

Ontario teachers’ strike and rail blockades in February, as well as a drop in oil prices had made for a rocky start in the first part of the quarter, according to Statistics Canada before the COVID-19-related shutdowns.

Household spending was down 2.3 per cent in the first quarter of 2020, the steepest quarterly drop ever recorded.

The average economist estimate had been for a nine per cent drop in gross domestic product for March, while the average estimate for the first quarter as a whole is for a GDP pullback at an annualized pace of 10 per cent, according to financial markets data firm Refinitiv.

The current April to June quarter is expected to be worse.

Meanwhile, shares at Canopy Growth Corp. are tanking after a reported loss of $1.3 billion in its fourth quarter due to impairment and restructuring charges as the cannabis company said it would reset its strategic focus.

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First-quarter GDP worst showing since 2009: Statistics Canada – CityNews Toronto

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Statistics Canada says the economy in the first quarter had its worst showing since 2009 as steps taken to slow the spread of COVID-19 forced businesses across the country to close their doors and lay off workers.

Statistics Canada says gross domestic product fell at an annualized rate of 8.2 per cent in the first three months of 2020.

The collapse came as gross domestic product for March fell 7.2 per cent as restrictions by public health officials began rolling out during the month, including school closures, border shutdowns and travel restrictions.

Events earlier in the quarter also had a drag on GDP with Statistics Canada pointing to the Ontario teachers’ strike and rail blockades in February, as well as a drop in oil prices.

Household spending was down 2.3 per cent in the first quarter of 2020, the steepest quarterly drop ever recorded.

The average economist estimate had been for a nine per cent drop in gross domestic product for March, while the average estimate for the first quarter as a whole is for a GDP pullback at a annualized pace of 10 per cent, according to financial markets data firm Refinitiv.

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Gulf Keystone Petroleum Gave Away Crude Oil For Free In April – OilPrice.com

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Gulf Keystone Petroleum Gave Away Crude Oil For Free In April | OilPrice.com

Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.

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KRG oil

If you were wondering how those negative crude oil prices in April played out in the physical market, now we know.

As the price of WTI fell below the $0 mark last month, Gulf Keystone Petroleum Ltd., a seller of Shaikan crude oil produced in northern Iraq, gave its oil away last month for free according to Bloomberg, as the price of its oil pumped from the Shaikan field traded more than $21 under Brent prices.

Brent traded at an average of $21.04 for the month of April.

The recipient of the month’s worth of free crude was the Kurdish regional government. It’s unclear if they had to make up the 4-cent difference per barrel—but at any rate, that $43,000 price tag for more than a million barrels of oil is still quite the bargain.

Gulf Keystone Petroleum produces 36,000 barrels a day of the Shaikan crude, according to the company’s website. Gulf Keystone made the Shaikan 1 discovery in 2009, before selling domestically in November 2010.

GKP’s full-year after tax profit for 2019 was $43.5 million.

Oil managed to stay out of the red in May, with the price of a Brent crude barrel on Thursday reaching over $35 per barrel, as the supply outlook has improved with significant OPEC cuts, and oil demand has improved since April. Brent topped $65 at the beginning of the year.

But oil prices are not expected to make a drastic recovery overnight. Lingering lockdowns in the world’s largest demand center, the United States, is stymying any recovery on prices, even as OPEC, Russia, and the United States have managed to cut production by millions and millions of barrels per day.

By Julianne Geiger for Oilprice.com

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