An analyst from National Bank, Patrick Kenny, has adjusted the price target for Tidewater Midstream & Infrastructure (TWMIF, Financial), reducing it from C$0.15 to C$0.10. Despite the change in the price target, the shares retain an Underperform rating.
TWMIF Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tidewater Midstream and Infrastructure Ltd (TWMIF, Financial) announced an agreement to purchase the North segment of Pembina Western pipeline, which is expected to provide a reliable and lower-cost source of feedstock.
- The company has made significant progress in marketing its diesel and gasoline volumes, transitioning to in-house marketing after the expiration of a previous offtake agreement.
- Tidewater Midstream and Infrastructure Ltd (TWMIF) completed the sale of the BRC roadway network for $24 million, using $22.5 million to repay outstanding debt, aiding in deleveraging efforts.
- The company is seeing positive demand for processing capacity at the Brazil River Complex and anticipates potential announcements regarding increased volumes.
- Tidewater Midstream and Infrastructure Ltd (TWMIF) has built up a significant inventory of BCL CFS credits, providing leverage for liquidity management.
Negative Points
- The company reported a consolidated net loss attributable to shareholders of $31.8 million in Q1 2025, significantly higher than the $11.3 million loss in Q1 2024.
- Consolidated adjusted EBITDA was negative $3.7 million in Q1 2025, a sharp decline from $39.8 million in Q1 2024, primarily due to lower refined product sales and margins.
- The Prince George Refinery throughput was 20% lower than the first quarter of 2024, affected by third-party facility and pipeline maintenance.
- The Canadian International Trade Tribunal terminated its preliminary injury inquiry regarding Tidewater Renewables' complaint about imports of renewable diesel from the United States, a setback for the company.
- The Brazil River Complex experienced lower throughput due to an outage and discontinuation of sour gas processing, impacting overall performance.
