Tidewater Renewables Face Challenges From Carbon Credit Questions -- Market Talk

Dow Jones
2024/11/16

1153 ET - Tidewater Renewables still faces challenges from low carbon fuel standard credits, which could be a problem for shares. CIBC's Robert Catellier says strong operational performance hasn't been enough to offset the uncertainty of the LCFS credit market, which have been pummelled by large volumes of subsidized U.S. renewable diesel moving to the British Columbia market, reducing margins and creating liquidity issues for the Tidewater Renewables. Combined with a tight liquidity situation, the risk of shareholder dilution remains very high, Catellier says. The risk becomes one which is highly contingent on government intervention to enact market reforms to stabilize the British Columbia LCFS credit market. Shares are down 86% year-to-date at C$1.15. (adriano.marchese@wsj.com)

 

(END) Dow Jones Newswires

November 15, 2024 11:53 ET (16:53 GMT)

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