By Robb M. Stewart
Cameco aims to sharply lift its dividend in the coming years on the back of improved cash flow generation and rising market prices for uranium.
The Canadian uranium producer on Thursday boosted its revenue target for the year on the back of stronger output of the fuel, and following a jump in revenue for the third quarter with a rise in production.
Cameco's third-quarter net earnings fell sharply to 7.4 million Canadian dollars ($5.3 million), or C$0.02 a share, from C$148.1 million, or C$0.34, a year earlier. On an adjusted basis, Cameco swung to per-share loss of C$0.01, against earnings of C$0.26 expected by analysts polled by FactSet.
Revenue for the three months was 25% higher at C$720.6 million, missing the C$772.1 million mean forecast of analysts.
Cameco's uranium operations produced 4.3 million pounds, up from 3 million in the same period last year.
With increased output expected from its McArthur River/Key Lake operations in northern Saskatchewan, Cameco is now looking to produce up to 23.1 million pounds from its owned and operated properties this year, where it previously expedited 22.4 million pounds. Revenue for 2024 is forecast to come in at between C$3.01 billion and C$3.16 billion, including C$2.55 billion to C$2.68 billion from uranium, where the company previously anticipated C$2.85 billion to C$3 billion in overall revenue.
The company said it was recommending a dividend growth plan to its board under which it would at least double last year's payout of C$0.12 a share to C$0.24 over 2023 through 2026. That would mean annual increases of at least C$0.04 a share. It comes after Cameco's board in 2022 raised the dividend by 50% to reflect an improved financial performance.
Cameco's board declared a 2024 annual dividend of C$0.16 a share, payable on Dec. 13 to shareholders of record on Nov. 27.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
November 07, 2024 08:12 ET (13:12 GMT)
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