Canadian Oil Sands Ltd, Q1-2012 Financial Results, Increase Dividend with 17%

Dear PGM CAPITAL Blog readers,
Today Monday, April 30 2012, after the bell Canadian Oil Sand Ltd (TSX: COS),
(ISIN CA13643E1051), reported its financial results for the three months period ended March 31, 2012.


  • Cash flow from operations was $454 million ($0.94 per Share) in the first quarter of 2012, down five per cent from cash flow from operations of $478 million ($0.99 per Share) recorded during the 2011 first quarter. The decrease was due mainly to lower sales volumes and higher Crown royalties, partially offset by a higher sales price and lower operating expenses.
  • Operating expenses in the first quarter of 2012 decreased by a significant 17 per cent to $321 million, or $32.68 per barrel, from $387 million, or $35.53 per barrel, in the same period of 2011. The decline primarily reflects decreased purchased energy costs due to lower natural gas prices in 2012.
  • Increasing the quarterly dividend to $0.35 per share from $0.30 per share, payable on May 31, 2012 to shareholders of record on May 25, 2012.

“The increase in the dividend to $0.35 per share reflects confidence in our business fundamentals and the commitment to delivering excess cash to our investors,” said Marcel Coutu, President and Chief Executive Officer.

All figures are in Canadian Dollar (CAD)


We have placed Canadian Oil Sands Ltd, on our watch list early October 2011 and based on its fundamentals, P/E ratio of 9.20 and dividend yield of 6.41% (based on today’s closing price of CAD 21.83 a share and dividend hike of 17%) we have a BUY rating on the company.

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

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