Canadian Oil Sands Ltd, Q3-2011 Financial Results & Dividend Declaration

Dear PGM CAPITAL Blog readers,
On Thursday, October 27 2011, after the bell Canadian Oil Sand Ltd (TSX: COS),
(ISIN CA13643E1051), reported its Q3-2011 financial results.

Highlights:

  • Cash flow from operations increased 123% to CAD 512 million (CAD 1.06 per Share) in the third quarter of 2011 from the prior year period. Year-to-date, cash flow from operations totalled CAD 1,534 million (CADn3.16 per Share), up 84% from the same period in 2010.
  • Canadian Oil Sands realized a selling price of CAD 97.89 per barrel during the third quarter of 2011, the year-to-date realized selling price has averaged CAD 100.20 per barrel.
  • Operating expenses averaged CAD 37.19 per barrel during the third quarter of 2011, and CAD 36.56 per barrel for the nine months ended September 30, 2011.
  • Sales volumes averaged 109,000 barrels per day in the third quarter of 2011 and 111,000 barrels per day year-to-date.
  • The company declared a dividend of CAD 0.30 per share, payable on November 30, 2011 to shareholders of record on November 25, 2011.

We have placed Canadian Oil Sands Ltd, on our watch list early October 2011 and based on its fundamentals, P/E ratio of 10.10 and dividend yield of 4.99% (based on the closing price of Friday October 28 2011 of  CAD 24.03 a share) we have a BUY rating on the company.

Disclosure:
Since mid October 2011, we have start adding Canadian Oil Sands to our own portfolio and those of our clients.

Last be but not least, before following any investing advice, always take your investment horizon and risk tolerance into consideration and keep in mind that the price of Commodities as well as the stocks of their producers can be very volatile and that sharp corrections might happen in the short term.

Yours sincerely

Eric Panneflek
Chairman

Leave a Reply

Your email address will not be published.