| Thursday | ||||
TD Securities analyst… TD Securities analyst Sean Steuart lowered the firm's price target on Resolute Forest to $16 from $17.50 and keeps a Buy rating on the shares. He lowered target prices for seven of the 10 companies in his coverage universe, including Resolute Forest, noting that forest product equities remain under pressure as investors discount an increasingly negative macroeconomic outlook, but he reiterates an Overweight bias on the sector given that balance sheets are in significantly better shape than was the case entering previous recessions and he believes current valuations "assume an overly negative outlook." | ||||
| Over a month ago | ||||
Resolute Forest Products… Resolute Forest Products announced ratification of a four-year collective agreement by Unifor union members at seven of the company's pulp and paper mills in Canada, following an agreement-in-principle reached on May 15. The collective agreements cover approximately 700 hourly employees represented by Unifor at Resolute's Dolbeau; Gatineau; Kenogami; Saint-Felicien and currently indefinitely idled Amos and Baie-Comeau pulp and paper facilities in Quebec; and the Thunder Bay operation in Ontario. The seven mills account for about 50% of the company's total pulp and paper production capacity. | ||||
Reports Q1 revenue $945M,… Reports Q1 revenue $945M, consensus $1.26B. "We further strengthened the balance sheet with significant cash generation and improved the competitiveness of our business with two tuck-in acquisitions," said CEO Remi Lalonde. "Our earnings and cash position reflect favorable pricing momentum in all of our segments, but the transportation network improvements were slower than expected, which led to lower sales volume and higher inventory levels. With our strong balance sheet and liquidity well over $1 billion, we benefit from enhanced flexibility to generate long-term value for shareholders and to drive sustainable economic activity in the communities where we operate. I am also pleased to confirm we surpassed our 30% absolute greenhouse gas emissions (scope 1 and 2) reduction target, cutting them by 34% compared to 2015 levels." | ||||
| Over a quarter ago | ||||
Resolute Forest Products… Resolute Forest Products Inc. (RFP) announced that it has completed the previously announced acquisition of the 50% equity interest of Louisiana-Pacific Corporation (LPX) in Resolute-LP Engineered Wood Larouche Inc. and Resolute-LP Engineered Wood St-Prime Limited Partnership located in Quebec. In connection with the closing, Resolute entered into agreements with Louisiana-Pacific for it to serve as the exclusive distributor of the engineered wood products produced at the two operations. | ||||
Boralex announces an… Boralex announces an agreement for the sale of the 34.5 MW Senneterre power plant, the last remaining biomass power generation asset in its portfolio. The power plant has been purchased by Resolu Forest Products Canada, an Abitibi-Temiscamingue-based company that has been a supplier of by-product for the Power plant for the past two years. As laid out in its updated 2025 Strategic Plan, Boralex is looking to accelerate its growth in the wind, solar and storage sectors while optimizing its hydroelectric facilities. The sale of the Senneterre Power Plant is consistent with that ambition. From the outset, Boralex focused particular attention to the sustainability of the Power Plant and the associated jobs. For Boralex, it was important that the Power Plant's operations be assumed by a company particularly familiar with the local environment, for the benefit of the plant's employees, customers and suppliers as well as the town of Senneterre. The Power Plant has a power purchase agreement with Hydro-Quebec and employees will be transferred to the purchaser. The transaction will be finalized following completion of all customary closing conditions, including receipt of Hydro-Quebec's consent. | ||||
Resolute Forest Products… Resolute Forest Products (RFP) announced two separate transactions to grow and improve the competitiveness of its wood products business. Resolute reached an agreement with Louisiana-Pacific (LPX) to acquire the latter's 50% equity interest in two joint ventures that produce I-joists in the Lac-Saint-Jean region of Quebec for $50M, subject to customary adjustments. Resolute-LP Engineered Wood Larouche Inc. and Resolute-LP Engineered Wood St-Prime Limited Partnership are located in Larouche and Saint-Prime, respectively, and are equity method investments in which Resolute has a 50% interest in each entity. Resolute operates the facilities and its joint-venture partner, Louisiana-Pacific, sells the products. Resolute will enter into agreements with Louisiana-Pacific to continue to serve as the exclusive distributor of the engineered wood products manufactured at the two operations. In a separate transaction, Resolute also announced an agreement signed on February 11 with Boralex for the purchase of a cogeneration facility in Senneterre, Quebec. The acquisitions, subject to regulatory approvals and certain closing conditions, are expected to close in the first half of 2022. Resolute intends to pay for the purchases with cash on hand. | |
Resolute Forest is down… Resolute Forest is down -21.2%, or -$3.01 to $11.21. | |
Resolute Forest is down… Resolute Forest is down -19.9%, or -$2.83 to $11.39. | |
Resolute Forest is down… Resolute Forest is down -17.2%, or -$2.45 to $11.77. | |
CIBC analyst Hamir Patel… CIBC analyst Hamir Patel upgraded Resolute Forest to Outperformer from Neutral with a price target of $19, up from $14, citing a forecast for significant free cash flow generation in a stronger lumber market. |
