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Research: Energy & Resources
Canacol Energy released its 2022 ESG Report on 9 August. It highlights the company’s desire for a 50% reduction in Scope 1 and 2 emissions by 2035, to achieve carbon neutrality by 2050 and to have no methane emissions by 2026. This reflects Canacol Energy’s position as a top decile upstream performer in the S&P Global Corporate Sustainability Assessment.
Written by
Peter Hitchens
Canacol Energy |
2022 ESG report highlights new goals |
ESG update |
Oil and gas |
18 August 2023 |
Share price performance
Business description
Analyst
Canacol Energy is a research client of Edison Investment Research Limited |
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Canacol Energy released its 2022 ESG Report on 9 August. It highlights the company’s desire for a 50% reduction in Scope 1 and 2 emissions by 2035, to achieve carbon neutrality by 2050 and to have no methane emissions by 2026. This reflects Canacol Energy’s position as a top decile upstream performer in the S&P Global Corporate Sustainability Assessment.
Year end |
Revenue (US$m) |
EBITDAX* |
Cash flow |
Net debt |
Capex |
Yield |
12/22 |
336 |
198 |
185 |
438 |
(180) |
8.5 |
12/23e |
351 |
218 |
190 |
481 |
(150) |
8.5 |
12/24e |
364 |
217 |
197 |
503 |
(160) |
8.5 |
12/25e |
530 |
365 |
301 |
486 |
(180) |
8.5 |
Note: *Earnings before interest, tax, depreciation, amortisation and exploration write-off.
Canacol highlighted the progress it is making on becoming a leading sustainable natural gas producer in the Americas. It has greenhouse gas (GHG) emission intensities that are 50% lower than its gas focused peers in North and South America and 80% lower than its oil focused peers. The company is now a top decile performer according to S&P’s Corporate Sustainability Assessment and has received an A ESG rating from MSCI. The group is also committed to empowering its people as well as running a transparent and ethical business. Canacol Energy was certified as a 2022 Great Place to Work by the Best Places to Work Organization. ESG is an important area for the group, with short- and long-term executive compensation tied into ESG metrics and performance.
Canacol Energy is committed to improving its environmental performance and has put in place some very stringent decarbonisation targets. The company wants to be methane neutral by 2026. It wants to reduce by 50% its Scope 1 and 2 emissions by 2035. Scope 1 emissions are produced directly, while Scope 2 are produced indirectly (such as electricity from another generator). Canacol also aims to be carbon neutral by 2050. The group maintained its commitment to a Zero Waste Certification by 2024. Canacol has also entered an agreement with the Wildlife Conservation Society to help with reforestation.
2022 was generally an improved year for Canacol. The group has achieved a 10% year-on-year decline in methane emissions through continuous leak detection and repair as well as better flare efficiency/reductions. The group recycled 15% of the water used and increased the use of recycled water by 53% compared to the previous year. There was a pickup in the Scope 1 emissions, but this was more due to the addition of further compression at its gas processing facilities rather than a change in the underlying trend of falling Scope 1 emissions we have seen. As with previous years, the company had no reported hydrocarbon spills. Outside of the environment, the company performs well on the safety front, having logged five million work hours without a fatal accident.
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Research: Financials
CoinShares International (CS) levererade ytterligare en solid uppsättning kvartalsresultat, med EBITDA på 12,8 miljoner GBP under andra kvartalet 2023 jämfört med 8,4 miljoner GBP under första kvartalet 2023. Kapitalförvaltningsverksamheten genererade avgiftsintäkter på 10,6 miljoner GBP (ned från 14,2 miljoner GBP under andra kvartalet 2022, men upp från 9,2 miljoner GBP under första kvartalet 2023) när det totala förvaltade kapitalet ökade till 2,14 miljarder GBP i slutet av juni 2023 från 1,44 miljarder GBP i slutet av 2022. Verksamheten inom kapitalmarknadsinfrastruktur (CSCM) redovisade en vinst på 10,0 miljoner GBP under andra kvartalet 2023, främst tack vare aktiviteter inom räntebärande tillgångar, staking och decentraliserad finansiering (DeFi). CS fortsätter att utveckla sin aktiva kapitalförvaltningsverksamhet och börjar med att köra sin första strategi för att generera ett track record före den formella lanseringen i slutet av 2023.