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Highlights

  • Superior Plus Corp. sealed an order worth USD 54.0 million with Hexagon Agility in Mobile Storage Units (MSUs) in Q2 2023.
  • SPB paid a dividend of CAD 0.18 per common share in October 2023 for the third quarter.
  • The company’s net revenue decreased to CAD 581.5 million in the reporting period, against CAD 628.6 million in Q2 2022.

One of the leading North American companies, Superior Plus Corp. (TSX: SPB) is involved in distribution and marketing of propane, distillates, and similar offerings. It provides its services to about 936,000 customer locations across the USA and Canada.

Recently, Superior Plus sealed an order worth USD 54.0 million with Hexagon Agility in Mobile Storage Units (MSUs). The MSU deployment will facilitate transportation of hydrogen, RNG, and CNG. This will boost the company’s EBITDA as well as offer vital utility backup for surging demand and pipeline outages.

Superior Plus has also completed the acquisition of Certarus, which posted a record pro forma Adjusted EBITDA of CAD 41.5 million in the second quarter, approximately 58% higher than the  previous corresponding period.

SPB paid a dividend of CAD 0.18 per common share in October 2023 for the third quarter, to its shareholders as recorded on September 29, 2023. Furthermore, the stock had a healthy dividend yield of 7.73%, at the last closing price of CAD 9.55 as on November 1, 2023.

The company’s net revenue decreased to CAD 581.5 million in the reporting period, against CAD 628.6 million in Q2 2022. The decline in revenue was mainly due to a drop in revenue from the Wholesale Propane, U.S. Propane and Canadian Propane segments.

However, the gross profit of the company stood at CAD 268.9 million for Q2 2023, versus CAD 194.5 million in the previous corresponding period. The surge can be attributed to the contribution from Certarus as well as increased U.S. Propane gross profit. The higher gross profit led to a drop in its loss before taxes to CAD 71.5 million, against a loss of CAD 119.5 million in Q2 2022.

Top 10 Shareholders

Around 22.95% of the total shareholding in the company is held by its top ten shareholders. While Marquard & Bahls AG is the biggest shareholder with a  stake of about ­­9.57%, the Vanguard Group, Inc. is the second-biggest shareholder with over 2.15% shareholding in SPB.

 

Stock Price Performance

SPB’s stock price has gained over 1.81% in the last one week. It has declined by approximately 3.53% in the past one month. The stock’s 52-week high and low price stand at CAD 11.62 and CAD 9.10, respectively.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 1, 2023. The reference data in this report has been partly sourced from EODHD/Others.