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CCO and SCL: Why you should not ignore these energy stocks

Published 2023-05-17, 04:23 a/m
© Reuters.  CCO and SCL: Why you should not ignore these energy stocks
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Kalkine Media - Summary

  • Rising oil and natural gas have made the sector desirable for many investors.
  • Cameco (TSX:CCO), a global leader in uranium production, reported net income of CA$ 118.97 million during Q1 2023.
  • Shawcor has pipeline and pipe services and manufacturing and service facilities sprawled across the globe.
The rising prices of oil and natural gas have made this the correct time to invest in the sector. Even as most countries have shifted composition to renewable sources of energy, oil and gas products remain largely in demand across the world.

These products largely remain indispensable resources for the global economy and power operations across many other sectors. On that note, here are two energy stocks that should not be ignored in May 2023:

Cameco Corporation (TSX: CCO)

The company is a global leader in uranium production, and it operates facilities that help in uranium conversion and fabrication. Its flagship McArthur River mine in Saskatchewan covers 50% of output and it may restart some of its shut mines.

Image Source: Pexels

The company announced its results for Q1 2023, showing net income of CA$ 118.97 million. Meanwhile, the company’s operating revenue during Q1 2023 was CA$ 686.98 million, which was 26.65% higher on a year-on-year basis. The gross profit during Q1 2023 was CA$ 167.18 million.

Cameco recently signed a nuclear fuel agreement for supporting the diversification efforts of Bulgaria. Under the agreement that will run through 2033, Cameco will deliver around 5.7 million pounds of uranium concentrate.

Shawcor Ltd. (TSX: SCL)

The energy company has pipeline and pipe services that serve various sectors of infrastructure, energy and transport. The firm majorly operated with the help of a global network of manufacturing and service facilities.

Shawcor reported total revenue of CA$ 345.46 during Q1 2023 and an operating revenue of CA$ 345.46 million. For Q1 2023, the gross profit was CA$ 108.3 million while the adjusted EBITDA was CA$ 55 million.

Image Source: Pexels

The company recently invested in two composite system facilities that would help enhance its production capacity and proficiency.

Please note, the above content constitutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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