Of course this is premature. Superior has a ways to go in reducing its debt before it can consider taking over another company. However it would be in their best interest to consider looking at Canexus. The price tag would be steep, but then they would viturally own all the specialty chemical producers in Canada. Own all the propane and then all the speciality chemicals. (practically a monopoly in two areas)
As i have stated before
1.) They now have had a full year of profitablity (first in awhile)
2.) Their payout ratio is between 56-65%, with the bump up a possible one time tax expense (Ballard)
3.) As their stock is growing they are giving out less drip shares (that are worth more) so a declining growth in shares where they have to pay more dividends.
4.) 50 million reduction in convertable debentures (savings of around 3 million a year) When went over their reports they have been paying around 80 million in interest a year. In the recent year, this had dropped almost 10 million.
5.) Bound to get a credit rating upgrade soon, as their debt is decreasing.
6.) Within the next year or 14 months, two of their speciality chemical plants which had upgrades to double their capacity (70,000 to 140,000 liters per batch) will go online. Also they will now be able to produce Hydrochloric Acid, which is more profitable than chloroalkoli.
7.) Still The golden age of refining? Remember in 2008 the price of a barrel of oil was $150, a price per liter in Canada was $1.50 (In the states it was around 4 dollars a gallon) Now the price of a barrel is around $93 dollars a barrel. Fuel is $1.15 a liter and in the states the price is around $3.35-3.45 (east coast) Do you see the disconnect. Price per barrel drops almost 40% in the states and yet the price at the pump drops 15%?!?!!? I have noticed this for the last few years. So who is making this money, Interesting that Superior owns a small refinery in the states, and margins have been good.
9.) Not to mention the economy is improving....