Keyera's Marketing Unit Outperforms Again in Second Quarter

Keyera’s second-quarter results were strong, and the company once again raised its 2022 guidance as a result of the higher marketing profits. Marketing profits are expected to now be a midpoint of CAD 395 million compared with last quarter’s guidance of CAD 320 million. The improved numbers were due to strong commodity prices and record iso-octane margins, the result of strong gasoline pricing and octane demand. Our forecast already incorporates the higher marketing profits, so we expect to maintain our fair value estimate and no-moat rating.