tiprankstipranks
Trending News
More News >
Tidewater Renewables Ltd. (TSE:LCFS)
TSX:LCFS
Advertisement

Tidewater Renewables Ltd. (LCFS) AI Stock Analysis

Compare
34 Followers

Top Page

TSE:LCFS

Tidewater Renewables Ltd.

(TSX:LCFS)

Rating:50Neutral
Price Target:
C$2.50
▼(-9.09%Downside)
The overall stock score of 50 reflects Tidewater Renewables Ltd.'s challenging financial performance and concerning valuation metrics, which are major drawbacks. Technical analysis shows slight positive momentum, providing some support. The recent negative corporate event regarding trade inquiry adds further uncertainty.

Tidewater Renewables Ltd. (LCFS) vs. iShares MSCI Canada ETF (EWC)

Tidewater Renewables Ltd. Business Overview & Revenue Model

Company DescriptionTidewater Renewables Ltd. (LCFS) is a Canadian energy company focused on producing low-carbon fuels and renewable energy solutions. Operating within the renewable energy sector, the company primarily engages in the production of renewable diesel, hydrogen, and other clean energy products aimed at reducing carbon emissions. Tidewater Renewables leverages its strategic infrastructure and partnerships to deliver sustainable energy solutions that meet the evolving needs of the energy market.
How the Company Makes MoneyTidewater Renewables Ltd. generates revenue through the production and sale of low-carbon fuels and renewable energy products, including renewable diesel and hydrogen. The company capitalizes on its existing infrastructure and strategic location to access feedstock and deliver its products efficiently. Revenue streams include sales contracts with fuel distributors, partnerships with other energy companies, and government incentives or credits for producing low-carbon fuels. Additionally, the company benefits from participating in carbon credit markets, allowing it to monetize reductions in carbon emissions. These diverse revenue streams enable Tidewater Renewables to maintain a robust financial foundation while contributing to a sustainable energy future.

Tidewater Renewables Ltd. Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q3-2024)
|
% Change Since: 3.77%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Negative
The earnings call highlighted significant asset sales and debt reduction, strong operational performance at the HDRD Complex, and progress on a sustainable aviation fuel project. However, these positives were overshadowed by a significant decline in adjusted EBITDA, weak emission credit markets, and challenges related to trade remedies against U.S. imports.
Q3-2024 Updates
Positive Updates
Asset Sale and Debt Reduction
Completed a significant transaction with Tidewater Midstream, selling key assets for $122 million, which was used to reduce outstanding debt on the senior credit facility.
HDRD Complex Performance
The HDRD Complex achieved a 95% utilization rate in Q3 2024, producing and selling over 140 million liters of renewable diesel since November 2023.
Sustainable Aviation Fuel Project Progress
Continued progress on the front-end engineering design for a 6,500-barrel per day sustainable aviation fuel project, fully funded through BC LCFS credits.
Negative Updates
Decline in Adjusted EBITDA
Adjusted EBITDA fell to $13.6 million in Q3 2024, down from $29.6 million in Q2 2024, due to the sale of EBITDA-generating assets and termination of take-or-pay contracts.
Weak Emission Credit Market
The demand and price for emission credits remain weak, impacting the company’s ability to compete with subsidized U.S. producers.
Trade Remedy Challenges
Engaged in trade remedy complaints against U.S. renewable diesel imports, which are unfairly priced and affect competitiveness. The outcome and timeline of this complaint are uncertain.
Company Guidance
During the Q3 2024 earnings call for Tidewater Renewables, the company provided significant guidance on its operations and financial performance. The company completed the sale of key assets to Tidewater Midstream, generating $122 million in cash proceeds, which were used to reduce debt. Tidewater Renewables also secured $7.7 million in BC LCFS credits from this transaction. The HDRD Complex achieved a 95% utilization rate, producing over 140 million liters of renewable diesel. The company reported adjusted EBITDA of $13.6 million for Q3, down from $29.6 million in Q2, primarily due to the asset sale. The first lien credit facility was reduced to $30 million and extended to February 2026. In addition, Tidewater Renewables is pursuing a trade remedy complaint against U.S. imports, anticipating potential duty relief by late Q2 2025. The company remains optimistic about policy support to create a level playing field with U.S. producers and continues to advance its sustainable aviation fuel project, funded by BC LCFS credits.

Tidewater Renewables Ltd. Financial Statement Overview

Summary
Tidewater Renewables Ltd. is facing financial headwinds with negative profitability and cash flow metrics. The income statement shows a challenging situation with a negative net income trend and declining gross profit margins. Cash flow analysis indicates negative free cash flow growth, impacting future investments and financial health. The balance sheet shows moderate stability but with increasing leverage.
Income Statement
40
Negative
The income statement shows a challenging financial situation with a negative net income trend and declining gross profit margins. Revenue growth is inconsistent, with significant fluctuations over the years. Despite a positive EBIT margin, the negative EBITDA highlights ongoing operational challenges.
Balance Sheet
55
Neutral
The balance sheet reflects moderate financial stability with a manageable debt-to-equity ratio. However, a declining equity ratio suggests increasing leverage. Return on equity metrics are negative due to consistent net losses, which is a concern for long-term sustainability.
Cash Flow
35
Negative
Cash flow analysis indicates negative free cash flow growth and a decreasing operating cash flow to net income ratio. This suggests that the company is struggling to generate cash from its operations, which could impact future investments and financial health.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue426.54M97.68M76.10M23.05M4.17M
Gross Profit118.15M44.05M46.13M8.93M-1.78M
EBITDA-409.47M-17.12M62.30M12.11M-4.01M
Net Income-357.85M-41.02M25.94M2.76M-12.70M
Balance Sheet
Total Assets406.53M1.09B993.32M730.99M73.30M
Cash, Cash Equivalents and Short-Term Investments44.00K105.00K11.38M1.02M-25.35M
Total Debt192.98M345.60M219.37M81.86M25.35M
Total Liabilities248.75M573.57M443.20M215.40M33.38M
Stockholders Equity151.27M506.63M543.63M515.60M39.92M
Cash Flow
Free Cash Flow30.60M-180.02M-177.13M-24.62M-8.01M
Operating Cash Flow54.65M22.78M67.44M6.36M-4.43M
Investing Cash Flow129.08M-136.04M-194.50M-213.15M-3.02M
Financing Cash Flow-183.79M101.98M137.41M207.81M7.45M

Tidewater Renewables Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.75
Price Trends
50DMA
2.58
Positive
100DMA
2.68
Positive
200DMA
1.90
Positive
Market Momentum
MACD
0.03
Negative
RSI
56.11
Neutral
STOCH
56.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LCFS, the sentiment is Positive. The current price of 2.75 is above the 20-day moving average (MA) of 2.63, above the 50-day MA of 2.58, and above the 200-day MA of 1.90, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 56.11 is Neutral, neither overbought nor oversold. The STOCH value of 56.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LCFS.

Tidewater Renewables Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
C$17.30M7.0873.47%371.84%
60
Neutral
C$5.15B-25.04-19.26%3.77%12.02%-69.08%
56
Neutral
C$3.25B303.180.67%2.09%-16.63%-87.78%
54
Neutral
C$66.69M3.3843.72%-37.73%
50
Neutral
C$100.13M-107.29%97.32%-2916.07%
50
Neutral
C$70.09M-24.89%-13.68%-1548.28%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:LCFS
Tidewater Renewables Ltd.
2.65
-5.50
-67.48%
TSE:BLX
Boralex Inc Cl A
31.59
-1.00
-3.07%
TSE:WEB
Westbridge Energy
0.66
-0.20
-23.26%
TSE:GIP
Green Impact Partners Inc
3.51
-0.24
-6.40%
TSE:REVV
ReVolve Renewable Power Corp
0.26
-0.10
-27.78%

Tidewater Renewables Ltd. Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Tidewater Renewables Announces AGM Results and Strategic Decisions
Neutral
May 28, 2025

Tidewater Renewables Ltd. announced the results of its annual general meeting, where 82.431% of outstanding shares were voted. Key outcomes included the election of four directors, re-appointment of Deloitte LLP as auditors, and approval of the executive compensation approach. These decisions are pivotal for the company’s governance and strategic direction as it continues to focus on renewable energy solutions.

The most recent analyst rating on (TSE:LCFS) stock is a Hold with a C$5.00 price target. To see the full list of analyst forecasts on Tidewater Renewables Ltd. stock, see the TSE:LCFS Stock Forecast page.

Private Placements and FinancingM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Tidewater Renewables Reports Q1 2025 Results and Strategic Developments
Neutral
May 8, 2025

Tidewater Renewables Ltd. reported its first-quarter 2025 results, highlighting a strategic sale of its interest in Rimrock Renewables Limited Partnership, which helped reduce debt. The company faced a decline in net income and Adjusted EBITDA compared to the previous year, attributed to asset sales and contract terminations. The Government of British Columbia’s amendments to the Low Carbon Fuels Act, increasing renewable fuel requirements, are seen as beneficial for the company and the broader Canadian biofuels sector. Additionally, Tidewater Renewables successfully refinanced its credit facilities, providing more financial flexibility. Despite a minor fire incident at its renewable diesel complex, operations resumed swiftly with minimal impact. The Canadian International Trade Tribunal’s decision to terminate an inquiry into alleged subsidized U.S. imports marks a significant development for the company.

Legal ProceedingsBusiness Operations and StrategyRegulatory Filings and Compliance
Tribunal Ends Inquiry into Tidewater Renewables’ Trade Complaint
Negative
May 6, 2025

The Canadian International Trade Tribunal has terminated its preliminary injury inquiry into Tidewater Renewables Ltd.’s complaint regarding countervailing and anti-dumping duties on U.S. renewable diesel imports. Despite disappointment, Tidewater Renewables remains committed to advocating for fair trade in Canada’s renewable diesel market, as it believes that U.S. imports have caused significant harm to its operations as the sole Canadian producer. The company is reviewing its options and may consider filing a new complaint.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 16, 2025