CRH plc (CRH) of Ireland whose primary listing is in London reported on its 2016 results in euros under International Financial Reporting Standards before the opening. The global cement and aggregates firm reported sales up 15% y/y to euros 27.1 bn, boosted by two acquisitions during the year of LH and CR Laurence. The cement industry is consolidating and YTD it bought another 8 companies. So sales and profit figures are not strictly comparable from 2015.

CRH plc before tax profits for the year rose 69% to euros 1.74 bn ($2.1 bn), or euros 150.2/sh, also up 69%. It forecast that its earnings before interest, taxes, depreciation and amortization would top euros 3 bn when it reported on its H1 and in fact it beat that number with EBITDA of euros 3.13 bn. This was nearly 50% over prior year EBITDA. More importantly its EBITDA margin last year was 11.5% vs year-earlier 9.4% so were are also talking about integrating new operations profitably. CRH's return on assets in 2016 hit 9.7% vs 7.6% in 2015, another good omen.

Analysts have been down on CRH and of the seven who cover it, only one rates it a buy, alongside 7 holds and one sell). The main reason is first debt, and secondly the p/e ratio. CRH chopped debt back by euros 1.3 bn to 5.3 bn last year, a decent cut. And its trailing p/e ratio of 26x earnings is not that high given its earnings growth.

CEO Albert Manifold said “returns were ahead of last year in every division” boosted by “momentum in the Americas and also in Europe”, particularly in the northern and eastern part of the continent where CRH is active. The share is up 4.25%+.

*Veresen (FCGYF), the Canadian gas pipeline and processing firm, and the possible building of a liquefaction plant in Oregon for shipping surplus Canadian gas to Asia, yesterday after the close reported its results for 2016. Its “distributable cash” came to C$356 mn or C$1.15/sh, up 14% over its initial guidance and 8% over prior year. Its Q4 result was also well over guidance at C$80 mn and 25 loony cents/sh. Its new model Alliance pipeline generated C$200 mn in distributable cash, up 20% from 2015, mainly because of favorable market trends and cost controls.

FCGYF invested C$1.15 bn of which half was its own money and the rest from partners for the Veresen Midstream construction at Sunrise, Tower, and phase II Saturn processing facilities. They are coming on below budget and on schedule and the first two will be in service by the end of this year.

It also sold its power generation business with 3 deals producing C$1.18 bn, substantially over the carried valuation. The money will be used to fund equity in another $1.5 bn of projects currently in the works, without the need to borrow, and for new projects. These include Cutback Ridge Partnership and Encana plus a stake in Montney, plus $200-$400 mn per year in run-rate capex for Veresen Midstream.

Martin Ferrera who covers this stock for us calls the results “reasonable”. He adds that while the Jordan Cove LNG project was not mentioned in the results it sounded like there is money in the till to build it if the US Federal Energy Regulatory Commission lifts its ban. Martin guesses it will be built starting 2019 and go into service in 2024 and may serve more non-Japanese utility customers.