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Should you watch these Canadian energy stocks in Q2 2023?

Published 2023-03-16, 12:47 a/m
© Reuters.  Should you watch these Canadian energy stocks in Q2 2023?
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Highlights

  • Some market experts are of the view that the energy demand will probably stay the same in 2023.
  • Brookfield Renewable registered a revenue of US$ 1,196 million in Q4 2022.
  • Enbridge (TSX:ENB), an energy infrastructure provider, is a blue-chip stock known for its assets.
The state of the economy thus far hasn't been as bad as many had anticipated. Some market experts are of the view that the energy demand will probably stay the same in 2023.

It is important to note that energy prices are very volatile, so investors should only explore stocks after proper analysis and research. At least they must look into businesses that have the resources to weather a downturn.

Here, in this article, we'll concentrate on two big energy companies in Canada and see how they have performed fundamentally:

Brookfield Renewable Partners L.P. (TSX: BEP.UN) Some are of the view that the demand for renewable energy may expand due to the ongoing shift to green energy, more investment in the industry, and supportive governmental policies.

In its financial statement for Q4 2022, the company said, "Securing contracts for more than 11,000-gigawatt hours of annual generation and continuing our strategy of working globally with the biggest corporate buyers of green power were advanced as key business targets."

In 2022, the company's cash and cash equivalents inched up to US$ 998 million from US$ 900 million in 2021. Meanwhile, the value of the total assets increased to US$ 64.08 billion from US$ 55.86 billion.

Brookfield Renewable registered a revenue of US$ 1,196 million in Q4 2022, up from US$ 1,091 million in Q4 2021. Also, the net income jumped to US$ 60 million, significantly higher than US$ 33 million in the previous corresponding period (pcp).

On March 14, the BEP.UN stock surged by 2.3 per cent during the trading session, closing at C$ 39.86 apiece.

Enbridge Inc. (TSX: TSX:ENB) Enbridge (TSX:ENB), an energy infrastructure provider, is a blue-chip stock known for its assets. In 2022, the company generated C$ 11.23 billion as cash from operating activities, up from C$ 9.25 billion in 2021.

The energy company is known for paying regular dividends, and it last paid a dividend of C$ 0.88 per unit and as on 15 March 2023 it had a dividend yield of 6.78 per cent.

In the last three years, the company's dividend grew by 5.02 per cent and 7.4 per cent in the last five years. As of writing, the market cap of Enbridge was US$ 105.9 billion.

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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