...In 1967, Suncor pioneered commercial development of Canada's oil sands – one of the largest petroleum resource basins in the world. Since then, Suncor has grown to become a globally competitive integrated energy company with a balanced portfolio of high-quality assets, a strong balance sheet and significant growth prospects. Constructed by the British American Oil Company in 1951 at a cost of $8 million, the Edmonton refinery produced about 12,000 barrels of refi need product per day. Through the years, the plant experienced several changes, including being purchased by Gulf Canada and later Petro-Canada in 1986. Suncor Energy is a Canadian integrated energy company based in Calgary, Alberta. It specializes in production of synthetic crude from oil sands. Suncor ranks number 134 in the Forbes Global 2000 list. Until 2010, Suncor marketed products and services to retail customers in Ontario through a downstream network of 280 Sunoco-branded retail sites, and 200 customer-operated retail and diesel...
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...John Molson School of Business, Concordia ACCO 310: Section AA Fall 2012 Annual Report Project Husky Energy Inc. Vs. Suncor Energy Inc. Presented by: Brittany Weekes - 6323677 Victoria Zillic - 9235477 Kwun Chung - 6290337 Ye Zhang - 5894352 Submitted to: Professor M. Sellors Date: November 27, 2012 Table of Contents Introduction 1 The Companies 2 Husky Energy Inc. 2 Investments 2 Suncor Energy Inc. 3 Investments 3 The Industry 4 Stock Performance 6 Ratio Analysis 8 Risk Factors 10 Commodity price risk 10 Regulatory risk 10 Sovereign risk 11 Earnings per Share (EPS) 12 Conclusion 14 References 16 Appendices 17 Appendix 1: Husky's Production - December 31st, 2011 17 Appendix 2: Suncor's Production – December 31st, 2011 18 Appendix 3: Ratio Interpretation 19 Appendix 4: Husky’s Basic EPS – December 31st, 2011 20 Appendix 5: Suncor’s Basic EPS – December 31st, 2011 20 Appendix 6: Husky's Financials 21 Appendix 7: Suncor's Financials 24 Introduction The purpose of this report is to carry out a financial analysis on Husky Energy Inc. and Suncor Energy Inc, to determine which of these two companies make up the appropriate energy-related exposure for our client’s stock portfolio. Thus, a financial analysis evaluation will be presented for the above mentioned companies as well as a reasoned investment recommendation to support our proposal. Acting as financial analysts, our team will reveal the macro and micro...
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...of the corporations business and ensure implementation and monitoring of systems to effectively manage these risks. Functions of the audit committee Suncor’s audit committee receives a score of 3. The reason for this is that their committee is composed of entirely independent auditors, they have a long list of standards to be followed specifically for internal and external controls, and lastly they also set out guidelines in which the audit committee should provide them with their Financial reports and public disclosure those guidelines are put in place in order for financial information set out to the public is accurate and timely and most importantly reliable. Imperial Oil also receives a score of 2. due to the fact that like Suncor they’re committee is composed of independent auditors. audit committee oversees the work of internal and external...
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...required will be significant in order to realize the true value associated with Lean principles. Poor planning will almost certainly result in disappointment and leave a strong negative association with any future Lean attempts along with a big investment with little to no return. With a focus on continuous improvement and continuous flow, manufacturing based on pull rather than push demand will assist organizations in becoming Lean. While Lean is a long journey, it can be one that returns significant value to an organization. What follows is a view of the history of Lean, some of the tools such as Value Stream Mapping, Kaizen, etc, along with the expected benefits, potential barriers, critical success factors, and a quick view of Lean at Suncor. Table of Contents 1.1. Introduction 4 1.2. Concepts, Theories, Tools and Techniques 5 1.2.1. The Toyota Production System 5 1.2.2. The Toyota Way 5 1.2.3. Continuous Flow – Pull versus Push 5 1.2.4. Mudda and the...
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...Investment Objective The investment objective for our group is “growth”. We have selected a long-term investment for the intent of wealth building. Growth stocks are intended to appreciate in value, as these companies have historical growth above average earnings, excellent cash flows to service their debts and high operating margins. Barrick Gold Corp. Barrick Gold Corp. is the gold industry leader. They have the largest un-hedged gold production and gold reserves in the industry. We chose to invest in Barrick Gold Corp. based on their target for growth, “A” rated balance sheet and their vision for being the best gold mining company through safe, profitable and socially responsible practices. Their income is generated from the finding, acquiring, developing and producing of quality gold reserves. In 2010, Barrick produced 7.8 million ounces of gold at a total cost of $457 per ounce and is targeting to grow to an annual production of 9.0 million ounce of gold within 5 years. The company also has exploration and developments projects that include proven and probable reserves of copper and silver. Stock Analysis On Feb.2, 2011, we purchased 423.01 of Barrick’s shares for $47.28 each. Their share price fluctuated from the purchase date till Mar.18. The share price was at its lowest the week of Feb.11. It increased by $4.00 by the end of week Feb.18, at the time the company declared a quarterly dividend of $0.12...
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...Subsequent to that situation, The Alberta Energy Regulator have taken a stand and opened an investigation in regards to the pollution caused by the mining companies. Syncrude, Suncor, Imperial Oil, Shell, Teck Resources, Total E&P, Canadian Natural Resources have all come together and invested a $90 million budget into restoring the oil...
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...could meet 16% of North America’s demand for oil. – Providing a secure sizable source of oil for Canada and the USA. * At a local scale, mining, processing and its multipliers generate around 100,00 jobs in Northern Alberta Environmental costs: * The Alberta Energy Research Institute says that processed tar sands are a large source of greenhouse gas emissions due to their energy intensive production * The environmental impact of mining Canada’s tar sands includes the removal of trees, shrubs and soul. 470 km2 of forest have been removed and lakes of toxic wastewater cover 130 km2 Key players: * Local residents of Alberta, Canada * National government * Albertas Oil sands cooporation, Shell Canada limited and Suncor Energy are all the production compnays involved. * Canadian...
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...BUSINESS PROFFESIONALETHICS COMM 332 Individual Assignment Discuss in your paper the three companies you researched and describe briefly their ethical dilemmas. Then compare the issues that they faced using the discussions, theories and relative case studies from the course. Discuss in your opinion how they could have avoided their ethical dilemma. Illiès Boussaha Student number: 230106913 Due Date: November 7, 2012 Word count: 2057 Maple Leaf Food is a Canadian food processing company that is located in Canada, the U.S, U.K and Asia. Its 100 facilities operates in the food and beverage sector, hiring 23.500 employees around the globe, of whom 1.100 temporary foreign workers. The company was created in 1963 and was originally named Canada Bread Company, Limited. It was, and still is the largest food processor of the country. A few years later, McCain Capital Corporation and the Ontario Teachers Pension Plan Board acquired most of the shares. They are still the main shareholders today. Moreover, the company acquired Olivieri™ Fresh Pasta and Sauces in 1988 and merged with Canada Packers Inc. In 1991. The company bought Canada's largest rendering company, Rothsay, the services provided by Rothsay are linked to environmental sustainability (collecting, processing and recycling animal products). Therefore, Maple Leaf Food seems to be environmentally friendly and thus has accomplished...
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...CHAPTER 6: CASH, TEMPORARY INVESTMENTS, ACCOUNTS RECEIVABLE and NOTES RECEIVABLE PROBLEM SOLUTIONS Assessing Your Recall Cash: Probable Future Value – The probable future value in cash is the ability of the cash to be exchanged for goods and services in the future. Ownership – Ownership is evidenced by possession of currency and by the right to control bank accounts. Temporary Investments: Probable Future Value - The probable future value in temporary investments is the cash payments that will be received from the investments in the future. These payments take the form of dividends in the case of shares and interest in the case of debt as well as the ultimate sales price of the securities when they are sold. Ownership – Ownership is evidenced by share or debt certificates although sometimes these documents are not distributed to the owners but a record is kept by the brokerage house that handles the investments for the company. Account Receivable: Probable Future Value – The probable future value in accounts receivable is that they represent the right to receive cash at some (usually fixed) date in the future. The cash, in turn, has value in the ability to be exchanged for goods and services in the future. Ownership – Ownership is evidenced by contracts either written or implied between the buyer and the seller. Invoices and shipping documents usually provide the necessary evidence of proof that a receivable exits. Notes Receivable: Probable Future Value –...
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...Canada's Top Employers 2014 3M Canada Company Aboriginal Peoples Television Network Inc. Accenture Inc. Aecon Group Inc. Agriculture Financial Services Corporation Agrium Inc. Air Canada Alberta-Pacific Forest Industries Inc. Bank of Canada Bayer Canada BC Public Service BDC / Business Development Bank of Canada Bennett Jones LLP Cameco Corporation Canadian National Railway Company / CN Canadian Security Intelligence Service Cape Breton District Health Authority Carswell, a division of Thomson Reuters Canada Limited Catholic Children's Aid Society of Toronto Cementation Canada Inc. Ceridian Canada Ltd. CIBC College of Physicians and Surgeons of British Columbia ConocoPhillips Canada Dalhousie University Deeley Harley-Davidson Canada Deloitte LLP Department of Finance Canada Desjardins Group / Mouvement des caisses Desjardins DIALOG Diavik Diamond Mines Inc. EllisDon Corporation Enbridge Inc. ERM Rescan Fairmont Hotels & Resorts General Electric Canada / GE General Motors of Canada Limited Georgian College Golder Associates Ltd. Great Little Box Company Ltd. Hospital for Sick Children, The HP Advanced Solutions Inc. ISM Canada Ivanhoé Cambridge Inc. Knight Piésold Ltd. KPMG LLP L'Oréal Canada Inc. Labatt Breweries of Canada Loblaw Companies Limited Lundbeck Canada Inc. Manitoba Hydro Manulife Financial Corporation Mars Canada Inc. McCarthy Tétrault LLP Medtronic of Canada Ltd. Merck Canada Inc. Monsanto Canada Inc...
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...concern for the work force in the provinces of Alberta, Saskatchewan and offshore Newfoundland and Labrador; all of which are the major producers of oil and gas in Canada. Alberta for example, which holds the lion’s share of oil reserves in Canada, provides 239,000 jobs to Albertans as well as its oil industry affects the jobs of 112,000 people outside the province. Overall, the entire Canadian industry provides jobs for 550,000 Canadians! Presently, the industry is thriving due to the dependence on oil by consumers as there is no cheaper alternative available, but it is on the verge of peaking in a few years. As of 2013, an average of 544.71 Quadrillion barrels per day are consumed worldwide; 44.17 in North America alone. Companies such as Suncor Energy Inc., Imperial Oil Ltd.**, and Husky Energy Inc. who are Canada’s 3 largest oil and gas producers are able to each net over 1,800 million ($). Nevertheless, these numbers are expected to drastically drop as U.S oil production increases. In an article from the NY Times and from the Dallas Business Journal, U.S is expected to become the top oil producer in the world by 2017 having already hit a 57 year high in oil exports in July 2014.As of 2012 U.S imported 25% of its oil from Canada and due to the growing independency of the U.S oil industry, oil exports from Canada to the U.S will indefinitely be further reduced, drastically cutting the Canadian oil industry’s revenue and weakening the security of its jobs. In order to cope with...
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...BUEC 563 – Energy Industries and Markets: Syllabus Instructor: Richard Dixon Email: rjdixon@ualberta.ca Phone: (780) 248-1650 ------------------------------------------------- Prerequisite: BUEC 502 – Managerial Microeconomics (or equivalent) COURSE OBJECTIVES While part of the Natural Resources, Energy and Environment specialization this introductory course is an overview to the resource and energy industries and markets. Students gain a basic understanding of the evolving nature and structure of energy industries and markets, including market, technological, environmental and other strategic issues. Second, there is a strong emphasis on students' proficiency levels in verbal and written business communication. Of particular interest is the ability to do and convey critical analysis and thinking in a variety of business formats (e.g. briefing note, strategic scenarios, business case, oral presentation, etc.). LEARNING GOALS Critical Thinking Students will be exposed to current issues and ideas concerning energy and its development in the 21st Century and this will help to develop their ability to analyze problems, situations and issues in a clear-minded, rigorous intellectual manner. At the end of the course the student will have more tools to critically think about current energy issues. Energy Fundamentals Students will enhance and develop a better understanding and awareness of the energy sector and its fundamentals from an economics, management and business...
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...Ethical Issues in Mergers and Acquisitions MERGERS AND ACQUISITIONS-AN OVERVIEW: The phrase mergers and acquisitions (M&A) refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company (in a given industry) grow rapidly without having to create another business entity. In legal terminology, mergers and acquisitions can be defined as follows: • Merger: A full joining together of two previously separate corporations. A true merger in the legal sense occurs when both businesses dissolve and fold their assets and liabilities into a newly created third entity. This entails the creation of a new corporation. • Acquisition: Taking possession of another business, also called a takeover or buyout. It may be share purchase (the buyer buys the shares of the target company from the shareholders of the target company. The buyer will take on the company with all its assets and liabilities. ) or asset purchase (buyer buys the assets of the target company from the target company). Although they are often uttered in the same breath and used as though they were synonymous, the terms merger and acquisition mean slightly different things. A purchase deal will also be called a merger when both CEOs agree that joining together is in the best interest of both of their companies. But when the deal is unfriendly - that is, when the target company does not want...
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...Company Analysis: Teck Resources Limited | November 9 2011 | Submitted by Amit Chaudhuri | BSEN-777 | Table of Contents 1. Company Profile ----------------------------------------------------------------------------- 3 2. Recent History ------------------------------------------------------------------------------- 3 3. Business Description ------------------------------------------------------------------------ 4 4. Financial Analysis --------------------------------------------------------------------------- 5 5. Strategy & Leadership ----------------------------------------------------------------------- 7 6. Future Outlook--------------------------------------------------------------------------------- 8 7. References-------------------------------------------------------------------------------------- 10 Company Profile Teck Resources Limited, formerly known as Teck Cominco Limited, was formed in 2001 following the merger of Cominco and Teck Corporation. It is a Canadian based integrated mining, mineral processing and metallurgical company. Seven years ago in 2001(1) when the Teck Cominco merger was completed, two strong Canadian companies with a tradition of excellence in mining and metal refining were brought together. In October of 2008 (1), the management of the company announced the launch of a simplified brand name, Teck, and the formation of five business units specializing in copper, metallurgical coal, zinc...
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...Payoff Diagrams (16p) Draw the gross payoff (not net-payoff/profit) diagram as a function of MLM stock for the following portfolios consisting of: (Strike values are given in parentheses) (a) one long position in the stock and two short positions in the same put option (K). (b) two long positions in the stock, two short call options (2K), and one long position ina put (K). (c) two short positions in the stock, two long call options (2K), and one short put option(3K). (d) one long position in the stock, two short call options (2K), two short call options (3K),and one short put option (2K). For this question, take into account the net profit only for the stock. You can assume that the stock is purchased at a price of K. Binomial Model (27p) Chevron Corporation has stakes in various oil development projects in Yemen and is considering to bid on a development of a new oil platform in Yemen in the future. However, due to ongoing civil war in Yemen and the instability of the Yemeni Currency (YER), Chevron wants to be hedged against two possible scenarios: * First scenario: The country becomes stable in the future and Chevron decides to go on with the bid and the bid is accepted, in that case Chevron would need Yemeni Rial (YER). * Second scenario: The country’s situation deteriorates and Chevron is forced to liquidate its current assets, in that case Chevron would want to exchange Yemeni Rial for USD and would want to be hedged against a possible depreciation...
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