will come into force Jan. 1, 2024, and is expected to generate $2.1 billion in revenues for the federal government over five years.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300A welcome email is on its way.
The announcement comes in the middle of quarterly earnings for the energy sector. While energy prices have climbed down from their 2022 highs following Russia’s invasion of Ukraine, global supplies have remained tight and oil and gas companies have continued to rake in significant profits this quarter.Article content
Cenovus Energy Inc., Imperial Oil Ltd. and Canadian Natural Resources Ltd. all reported higher earnings in the third quarter of 2022 compared to the the same period last year — amounting to nearly $10 billion in profit. Each of the companies have spent significantly this year on share buyback programs, with Imperial announcing this week a $1.5-billion substantial issuer bid to buy back shares from investors.
Canadian oil and gas companies emerged from a protracted downturn in energy prices in 2021 with a renewed focus on shareholder returns in a bid to attract investment, with most companies eschewing spending on new projects in favour of debt repayment, dividends and share buybacks — a pattern that has become entrenched as investors reward companies committed to shareholder returns, while simultaneously punishing organizations that have increased capital spending.
It’s not yet clear how companies will react to the new policy, though some experts predict a deluge of share buybacks between now and when the tax comes into effect in January 2024.
Trudeau will be out of office with any luck in 2023