Business Briefs: Aurora selling off assets but not yet its empty local facility
By MEDICINE HAT NEWS on February 11, 2022.
https://www.medicinehatnews.com@MedicineHatNews Aurora Cannabis sold facilities in Cremona, Alta., Saskatoon, South America and Europe in late 2021, but not its massive incomplete marijuana growing greenhouse in Medicine Hat. The Edmonton-based cannabis producer outlined the transactions in its quarter financial results on Thursday. Overall, the medical and recreational cannabis company recorded a $9-million loss in the final three months of 2021, though revenue increased and the company says it is on track for between $60 million and $80 million in costs this fiscal year. “We’re very pleased with our results,” said CEO Miguel Martin, who says the company is focused on turning a profit to begin the next fiscal year. In non-recurring income Aurora company reported a $4.4-million loss on the $1-million net sale of a consumer cannabis greenhouse it owned in Uruguay, and other sale of a “semi-complete” Aurora Nordic facility in Denmark for $7.5 million. Smaller facilities in Saskatoon and Cremona – also shuttered as the company “realigned” production – were sold. In Medicine Hat, the company spent more than $250 million building the still incomplete 1.6-million square-foot facility and initial processing “Aurora Sun” facility in northwest Medicine Hat starting in late 2018. In early 2020 it announced that work to complete it would completely halt as Aurora sought to slash costs and align production by closing or slowing most of its production facilities in Canada. Filings released this week suggest the company values the local facility at about $32.5 million for its accounting purposes. IPC poised to grow Benefiting from higher oil and gas prices in Canada, IPC Canada more than doubled its revenue in last quarter of 2021, to $215 million, compared to late 2020, and posted a gross profit of $210 million for the years, compared to a $77-million loss in 2020. A 2022 capital program worth US$127 million will focus on initial work on Black Rod extraction field in the Alberta oilsands region, and enhanced oil recovery at Suffield as well as further gas optimization on its southeast Alberta assets. The global producer’s capital market’s day presentation, also held Tuesday, shows oil production at Suffield/Alderson fields has returned to about 8,000 barrels per day after shut-ins from 2020 were brought back online. Gas production, which makes up one-third of the company’s global output, has remained steady following an increased well-swabbing program. About 12,000 swabs were conducted in 2021, more than double the number performed before IPC purchased the field in 2018. 14-13
