Month: May 2022

The S&P/ASX 200 Index (ASX: XJO) may have slipped today, but the CSL Ltd (ASX: CSL) share price had a better day.

CSL shares jumped 0.84% to $270.40. In comparison, the benchmark index dropped 1.18% today.

So what is happening at CSL?

How is the CSL share price performing?

Shares in the global biotech company jumped 2.15% in earlier trade to $273.95 before retreating to the current share price. For perspective, the S&P/ASX 200 Health Care Index (ASX: XHJ) also leapt more than 1% in early trade from 40,260 to 40,683 points before pulling back.

Analysts at Wilsons have recently named CSL as one of four “defensive growth” shares to buy in turbulent times.

In a memo to clients, Wilsons recommended it was “sensible” to have an above-average allocation to defensives including CSL:

Our picks are healthcare, insurance and telco.

Sectors like healthcare and consumer staples, along with utilities, have performed well against a backdrop of higher uncertainty around the US Fed’s and RBA’s hiking expectations and the impact this will have on the economy.

Wilsons also recommended Insurance Australia Group Ltd (ASX: IAG), Telstra Corporation Ltd (ASX: TLS) and Healthco Healthcare and Wellness REIT (ASX: HCW).

Meanwhile, Macquarie has also recently named CSL as a share to buy during market volatility. My Foolish colleague Brendon reported that CSL is considered by Macquarie to be a COVID-recovery share.

Share price snapshot

The CSL share price has fallen nearly 2% in the past 12 months while it has descended 7% year-to-date.

In comparison, the benchmark ASX 200 has returned less than 1% over the past year.

CSL has a market capitalisation of nearly $130 billion based on today’s share price.

The post How did the CSL share price escape the carnage today? appeared first on The Motley Fool Australia.

More reading

• Macquarie picks ASX 200 shares to buy in this volatile environment
• 4 ‘defensive growth’ ASX shares to buy in turbulent times: Wilsons
• The CSL share price has tumbled 8% this year. Here’s why these top brokers still have faith
• 2 strong blue chip ASX 200 shares to buy after the market selloff according to analysts
• Broker names 3 ‘champion’ ASX 200 shares to buy and hold

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Bubs Australia Ltd (ASX: BUB) share price has dropped by more than 29% over the last month.

It has declined much further than the S&P/ASX 200 Index (ASX: XJO), which has fallen by around 5%.

There has been a lot of volatility on the ASX share market. Inflation and interest rates are firmly in investor minds. But, Bubs has also recently released a quarterly update which may be factoring into investor thoughts.

Quarterly recap

On 26 April 2022, Bubs told investors how it had performed in the three months to 31 March 2022.

It said that gross revenue was up by 49% to $17.6 million. This was the third consecutive quarter of growth compared to the prior year. Bubs revealed that it’s seeing “positive growth momentum” across all of its key business pillars – domestic, China and international. Could this growth help the Bubs Australia share price?

Domestic retail infant formula sales more than doubled, up 108% on the previous corresponding period. It has reached a market share record, according to Bubs, with 4.2% of the overall infant formula category, and 40% scan sales growth. It claims to now be the number one goat infant formula brand with 42.1% of the total domestic goat segment.

While Chinese sales (daigou and cross-border e-commerce) were only up 8% year on year, while international gross revenue rose by 153%. International sales now account for approximately a third of sales in the last quarter.

The company continues to expand its bricks and mortar retail footprint in the United States, with 254 Smart & Final supermarkets in California and 130 Buy Buy Baby stores across 37 states. This is in addition to the ranging at Ralphs Supermarkets and an online presence on Amazon.com, Walmart.com, Thrive.com and others.

Bubs expects to deliver half-on-half revenue growth in the second half of FY22, partly thanks to the rollout of the new Bubs Supreme A2 beta-casein infant formula product range in the fourth quarter.

Lockdowns in China

One thing that investors may be keeping their eyes on is the lockdowns in China. The Chinese market is an important segment for the company – direct sales accounted for 40% of quarterly sales.

Lockdowns continue in China as authorities seek to stamp out COVID-19 there. Regarding that situation, Bubs said:

Due to renewed concerns regarding an increased number of COVID cases, authorities in China have implemented a range of measures including lockdowns. Bubs is working with its partners to ensure that consumers are able to access our products. Whilst there continue to be new challenges and issues to work through, the unique restructure of supply chain and logistics over the last two years have enabled the business to maintain and accelerate the growth momentum.

Is the Bubs share price an opportunity?

The broker Citi thinks so, with a price target of 59 cents. That implies a potential upside of around 60%.

However, Citi did acknowledge that the quarterly update wasn’t as good as expected and thinks the lockdowns in China may impact the current quarter. Citi suggests Bubs Australia will need to invest some money into launching its new products.

The post Bubs share price sinks 29% in a month. Top broker tips 60% upside appeared first on The Motley Fool Australia.

More reading

• 2 great ASX growth shares to buy in May 2022: experts
• Bubs share price sinks 7% despite quarter of ‘exceptional growth’

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Monday has been a rough day on the ASX. The benchmark All Ordinaries Index (ASX: XAO) ended the day recording a 1.47% slump. Though, not all All Ordinaries shares were in the red.

In fact, some were boasting gains of more than 15% this afternoon.

So what pushed these All Ords constituents to outperform today? Let’s take a look.

3 ASX All Ordinaries shares that traded higher on Monday

BrainChip Holdings Ltd (ASX: BRN)

BrainChip was the best performing ASX All Ordinaries share on Monday.

As of Monday’s close, the artificial intelligence computing company’s share price was $1.21, 14.15% higher than it was at the end of Friday’s session.

It’s impossible to say what has caused the stock to surge today. Though, some eagle-eyed market watchers recently noticed a mention of a partnership between BrainChip and UK-based semiconductor company, Arm, reports The Motley Fool Australia’s James Mickleboro.

The partnership doesn’t appear to have been officially announced. However, BrainChip has outlined the partnership on its website, saying that the companies will work to create faster, smarter, and safer sensor products.

Westpac Banking Corp (ASX: WBC)

The Westpac share price is also among the All Ordinaries gainers today.

The bank’s stock closed 3.23% higher on Monday, at $24.60. The move followed the release of Westpac’s earnings for the first half of financial year 2022.  

Its revenue slipped 8% and its cash earnings tumbled 12% over the first half. Though, that appears to be a better outcome than the market had hoped for.

Additionally, the bank increased its dividend slightly, promising shareholders 61 cents per share for the period.  

Domino’s Pizza Enterprises Ltd. (ASX: DMP)

Finally, the Domino’s Pizza share price also outperformed the ASX All Ordinaries today.

It finished the day trading at $67.60, 1.98% higher than it ended last week. That’s despite no news having been released by the pizza chain operator.

However, the Domino’s share price tumbled nearly 4% on Friday. Today’s increase could be a slight rebalance following last week’s sell-off.

The post 3 ASX All Ordinaries shares that managed to post decent gains on Monday appeared first on The Motley Fool Australia.

More reading

• Why BrainChip, PolyNovo, TPG, and Westpac shares are pushing higher
• Why is the BrainChip share price racing 8% higher today?
• These ASX shares pay you to own them
• ASX 200 midday update: Westpac result impresses, AVZ halted
• Westpac share price charges higher on earnings beat and improving costs outlook

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In late trade, the S&P/ASX 200 Index (ASX: XJO) looks set to record a disappointing decline. At the time of writing, the benchmark index is down 1.4% to 7,102.9 points.

Four ASX shares that are falling more than most are listed below. Here’s why they are tumbling lower:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is down 5% to a multi-year low of $3.99. This morning analysts at Bell Potter downgraded the struggling infant formula company’s shares to a hold rating and slashed their price target by a third to $4.75. The broker highlights that industry data is pointing to a difficult period for the company.

Imugene Limited (ASX: IMU)

The Imugene share price is down a further 10% to 16.3 cents. Investors continue to sell this biotech company’s shares following the termination of a supply agreement with Merck. This afternoon, Imugene revealed that the ASX has been quizzing it around its continuous disclosures. The ASX highlighted a sizeable 14% decline in its share price the trading day before the announcement. Imugene stressed that it is complying with listing rules.

Liontown Resources Limited (ASX: LTR)

The Liontown Resources share price is down 8% to $1.27. This follows broad market weakness, which is being felt hardest among shares that are higher up the risk curve. Liontown wasn’t the only lithium share tumbling today, the industry was a sea of red with heavy declines being recorded across the board.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is down 9% to $15.67. This morning the fund manager revealed that it has offloaded its stake in Guzman y Gomez. Magellan has agreed to sell its 11.6% stake for $140 million, which represents a $34 million profit on its original investment. Magellan made the sale to focus on its core funds management business. Some investors appear to believe the company should have held onto its stake.

The post Why A2 Milk, Imugene, Liontown, and Magellan shares are tumbling lower appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Monday
• A2 Milk share price sinks to multi-year low following broker downgrade
• Low charge: Is the party over for ASX lithium stocks?
• ASX 200 midday update: Westpac result impresses, AVZ halted
• Magellan share price sinks following $140 million Guzman sale

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Bank of Queensland Limited (ASX: BOQ) may not be a member of the ASX big four banks. That honour is still reserved for the likes of Commonwealth Bank of Australia (ASX: CBA). But Bank of Queensland shares are still ASX banking shares – a corner of the ASX from which investors typically expect big dividends.

So is this the case with the Bank of Queensland? Does this ASX bank square its dividend bite with the bark of income investors?

Well, the answer is yes. Bank of Queensland shares do currently pay a dividend. In fact, this ASX bank share has been a fairly consistent dividend payer over the past ten years. It did miss a dividend in 2020 as a result of the emergence of the pandemic. But that is nothing unique in the banking space –Westpac Banking Corp (ASX: WBC) also skipped a 2020 dividend.

How do Bank of Queensland shares stack up with dividends?

But last year saw Bank of Queensland dividends come roaring back. It ended up giving investors an annual total of 21 cents per share in dividends last year. Last week, Bank of Queensland actually traded ex-dividend for its upcoming interim dividend. This investors will receive on 26 May. It is to be a fully franked payment of 22 cents per share, a nice increase on last year’s interim dividend of 17 cents. 

Together with Bank of Queensland’s final dividend last year, this will give the bank a forward dividend yield of 5.8% on current pricing. With the full franking credits, this already solid yield grosses up to 8.29%. 

That happens to be above the dividend yields of all four of the major banks right now.

However, the Bank of Queensland share price hasn’t exactly been too kind to investors in recent years. Over the past five years, shareholders are still underwater by almost 35%. Indeed, back in 2010, Bank of Queensland shares were going for over $11. Today, they are priced at $7.58 at the present time. 

At this current Bank of Queensland share price, it has a market capitalisation of $4.87 billion. 

The post What is the current dividend yield on Bank of Queensland shares? appeared first on The Motley Fool Australia.

More reading

• Why is the Bank of Queensland share price slipping again on Thursday?
• Why is the Bank of Queensland share price sliding today?
• Why did the Bank of Queensland share price tank 7% in April?
• Hoping to bag the Bank of Queensland dividend? Read this
• The Bank of Queensland share price has lost 30% in 5 years. Have the dividends been worth it?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Investing in an era of rising interest rates will be brand new territory for some ASX investors.

Last week the Reserve Bank of Australia (RBA) bumped the official cash rate from the historic low 0.1% to 0.35%. And multiple more hikes are forecast in the months ahead.

This follows on from moves by the United States Federal Reserve and other leading central banks to increase their nations’ interest rates, with most banks hiking rates for the first time in a decade or longer.

Investing with higher interest rates may require some reallocation

Rates, as you’re likely aware, are heading upwards to fend off fast-rising inflation figures.

Australia’s most recent consumer price index (CPI) indicated inflation levels of 5.1%. That’s well above the RBA’s 2% to 3% target range.

Things are even more dire in the US, where the world’s biggest economy is enduring inflation of 8.5%. At that rate, inflation will see the cost of living in the US double in just over eight years.

Hence rates are going up and are likely to continue on an upward trajectory at least into next year.

And successfully investing with interest rates forecast to keep climbing requires a different strategy than investing in a year with falling interest rates.

For example, in 2022 as investors have come to grips with the reality of rising rates, the S&P/ASX 200 Index (ASX: XJO) has fallen 6.2%.

Tech shares, often dependent on distant earnings, have fared much worse. This is witnessed by the 31.3% year-to-date decline in the S&P/ASX All Technology Index (ASX: XTX).

ASX financial shares have also lost ground, but less than most of their blue-chip peers. The S&P/ASX 200 Financials (ASX: XFJ) is down 1.1% year to date.

So, what’s an investor to do?

Look beyond the noise and do not panic

Adrian Frinsdorf is a director at William Buck Wealth Advisory.

As The Australian reports, Frinsdorf says that investing with higher interest rates offers “both challenges and opportunities”, with no real changes to the underlying fundamentals of investing.

According to Frinsdorf:

It’s important to remember that wealth can be generated in this new environment. After all, one of the reasons for the rate rise in the first place was the strong performance of the economy.

An objective, patient and well-informed approach focusing on quality assets is the key to long-term wealth creation. It’s important that investors look beyond the noise and do not panic.

Of course, higher debt loads will become more costly with the rate hikes. Something to keep a close eye on.

“For those who have borrowed to invest, rising inflation and higher interest rates can have counter impacts,” Frinsdorf says. “So it may also be timely to review your debt position and strategy.”

In it for the long haul, or time to cut and run

Your investment horizon is another critical factor to consider when looking at investing with higher interest rates ahead.

“Those with a long-term outlook may not feel the need to adjust their portfolio, given that this is a cycle and they are looking 15-20 years ahead,” says eToro market analyst Josh Gilbert (quoted by The Australian).

“On the other hand, the assets that investors purchased in 2021 may not have the same outlook now that rates are starting to rise, so now is a great time for investors to reassess their portfolios,” Gilbert adds.

Investors may want to revisit shares with strong balance sheets and high profiles, according to Gilbert.

And, as we looked at above, financial shares tend to outperform when interest rates are rising.

“Banks and financials tend to perform well in rate hike cycles, this is because higher interest rates are generally beneficial to banks since they allow them to earn more net interest income,” Gilbert says.

The post ‘Do not panic’: Experts explain how to stay calm and carry on investing amid rising interest rates appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Monday
• Macquarie share price tumbles 4% to 9-week low. Is it time to pounce?
• The Lynas share price has plunged 6% today! What’s going on?
• ASX 200 midday update: Westpac result impresses, AVZ halted
• Why is the ANZ share price sliding on Monday?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Beach Energy Ltd (ASX: BPT) shares sit among the S&P/ASX 200 Index (ASX: XJO)’s energy giants but does the company stack up when it comes to paying out dividends?

The $3.78 billion oil and gas explorer and producer has been paying out dividends to its shareholders for many years now. Its dividend yield, however, leaves plenty to be desired.

At the time of writing, the Beach Energy share price is trading at $1.67, 0.3% higher than its previous close.

In comparison, the ASX 200 has had a shocker, slipping 1.29% today.

Let’s take a closer look at the details of the energy company’s dividends.

The lowdown on Beach Energy’s dividends

Beach Energy shares do pay dividends. Though, the company’s dividends are small compared to those of its peers.

Over the last 12 months, Beach Energy has paid out 2 cents of dividends.

It handed investors a 1 cent dividend for the financial year 2021 and another 1 cent dividend for the first half of financial year 2022.

It’s worth noting that both dividends were fully franked. That means some shareholders might receive additional value from the payouts come tax time.

Still, at its previous closing price, Beach Energy’s stock was trading with a dividend yield of 1.2%.

For comparison, shares in fellow ASX 200 energy stock, Santos Ltd (ASX: STO) offered a dividend yield of 2.4% at Friday’s close. Meanwhile, those of Woodside Petroleum Limited (ASX: WPL) boasted a 5.9% yield.

Still, Beach Energy’s recent 1 cent payouts are among the highest in the company’s dividend-paying history.

There have been only a handful of times the company has paid out more than 1 cent for any six-month period — the last time being eight years ago. At the time, it handed out a final and special dividend valued at a combined 2 cents for the financial year 2014.

Beach Energy share price snapshot

The Beach Energy share price has been performing well lately.

It has gained 27% since the start of 2022. It’s also 24% higher than it was this time last year.

The post Do Beach Energy shares pay dividends? appeared first on The Motley Fool Australia.

More reading

• Why did the Beach Energy share price beat the ASX 200 in April?
• 5 things to watch on the ASX 200 on Friday
• Why are ASX 200 energy shares leaping higher today?
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a disappointing decline. At the time of writing, the benchmark index is down 1.3% to 7,112.9 points.

Four ASX shares that have not let that hold them back are listed below. Here’s why they are pushing higher:

BrainChip Holdings Ltd (ASX: BRN)

The BrainChip share price has jumped 14% to $1.21. This appears to have been driven by the appearance of semiconductor giant, Arm, on BrainChip’s list of partners. On its website, BrainChip commented on the unannounced partnership, saying: “BrainChip is partnering with Arm, the leading technology provider of processor IP [intellectual property], to provide the most advanced solutions to make sensor products faster, smarter, and safer.”

PolyNovo Ltd (ASX: PNV)

The PolyNovo share price is up 4% to 93.5 cents. This follows news of more insider buying at the heavily shorted medical device company. As we reported here on Friday, the company’s chair, David Williams, picked up 500,000 shares through an on-market trade on 5 May. He has then followed this up with a purchase of ~1 million shares on 6 May. A fellow insider picked up shares with him on both days.

TPG Telecom Ltd (ASX: TPG)

The TPG share price is up 2% to $5.68. This morning the telco announced a binding agreement to sell 100% of its passive mobile tower and rooftop infrastructure to OMERS Infrastructure Management for $950 million. These funds are expected to be used by TPG to pay down its existing debt.

Westpac Banking Corp (ASX: WBC)

The Westpac share price is up 3% to $24.55. This follows the release of the banking giant’s half-year results, which came in ahead of expectations. Westpac reported an 8% decline in revenue to $10,230 million, a 12% reduction in cash earnings to $3,095 million, and a 61 cents per share interim dividend. The Visible Alpha consensus estimate was for first-half cash earnings of $2.8 billion and an interim dividend of 59 cents per share. Westpac also reiterated its bold cost cutting target despite its peers recently abandoning their own targets.

The post Why BrainChip, PolyNovo, TPG, and Westpac shares are pushing higher appeared first on The Motley Fool Australia.

More reading

• Down 40% in 2022, this ASX 200 share is climbing amid insider buying action
• Why is the BrainChip share price racing 8% higher today?
• These ASX shares pay you to own them
• ASX 200 midday update: Westpac result impresses, AVZ halted
• Westpac share price charges higher on earnings beat and improving costs outlook

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended POLYNOVO FPO. The Motley Fool Australia has recommended TPG Telecom Limited and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is unfortunately yet again falling this Monday. The ASX 200 has gotten up on the wrong side of the bed this morning, since it is, at the time of writing, down a nasty 1.15% at just over 7,100 points

But rather than focusing on this misfortune, let’s instead take a look at the ASX 200’s share volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Monday

Liontown Resources Limited (ASX: LTR)

Lithium hopeful Liontown Resources is our first ASX 200 share to take a look at today. So far, a notable 14.25 million Liontown shares have swapped hands as it currently stands. This doesn’t appear to be the result of anything out of the company itself. Liontown has made no ASX announcements today.

So we can probably lay the blame for this high volume at the feet of the Liontown share price movements we are witnessing. So far this Monday, Liontown shares have given up a depressing 7.25% of their value and are now being priced at $1.28 each. With a slide like that, no wonder so many shares have been bouncing around.

Telstra Corporation Ltd (ASX: TLS)

ASX 200 telco Telstra is our next share to take a glance at this Monday. So far today, a notable 15.19 million Telstra shares have been bought and sold on the markets.

There hasn’t been any news or announcements out of Telstra today, save for the now-routine share buyback notice. So it’s probably the results of these ongoing buybacks, as well as Telstra’s 0.13% loss so far today to $3.97 a share, that is responsible for this elevated volume.

Pilbara Minerals Ltd (ASX: PLS)

Pilbara Minerals is last up today. This ASX 200 lithium producer had watched 17.67 million of its shares find a new home so far. Here, we have a more obvious smoking gun. Like with Telstra, Pilbara hasn’t had anything to tell the markets directly this Monday.

However, the lithium stock has lost a painful 5.13% so far in today’s trading, and is now back to $2.59 a share. It’s this steep fall we can probably thank for the elevated trading volumes we are seeing.

The post Here are the 3 most heavily traded ASX 200 shares on Monday appeared first on The Motley Fool Australia.

More reading

• Is the Telstra share price a defensive buy during times of market uncertainty?
• Low charge: Is the party over for ASX lithium stocks?
• Macquarie share price tumbles 4% to 9-week low. Is it time to pounce?
• The Lynas share price has plunged 6% today! What’s going on?
• ASX 200 midday update: Westpac result impresses, AVZ halted

Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Fortescue Metals Group Limited (ASX: FMG)’s green hydrogen focused leg, Fortescue Future Industries (FFI), could provide a major alternative energy source for Europe.

That would allow the continent – and the world – to ease its dependence on Russian energy commodities and block the Kremlin from “conduct[ing] war games”, says Fortescue Metals and FFI founder and chair, Dr Andrew ‘Twiggy’ Forrest.

And Forrest says FFI already has the agreements in place to replace much of Europe’s gas with green hydrogen. Let’s take a look at how FFI could overhaul the European energy sector.

Could FFI green hydrogen replace Russian fossil fuels?

Green hydrogen could help combat Russian-born conflicts, and FFI’s agreements in Germany, the United Kingdom, and France could be part of the solution, Forrest recently told ABC Radio.

“People all over Europe [and] North America are just sick to the back teeth that they have to buy their fuel from wars in the Middle East and wars in Eastern Europe,” Forrest said.

“They’re saying, ‘why can’t we just get all our fuel, get all our critical energy … from nations like us nations who are democratic, nations who believe in the freedom of humanity?’

“And the answer is you can. In fact, you must, because there’s a real practical viable alternative and that’s green hydrogen.”

Forrest noted FFI’s multibillion-dollar deal with German energy network operator, E.ON could see FFI sending 5 million tonnes of green hydrogen to Germany each year.

That’s enough calorific energy to replace a third of the nation’s Russian gas imports.

“Green hydrogen … can replace everything which Russia produces in fossil fuel. That, of course, interrupts the Kremlin’s ability to conduct war games,” Forrest told ABC Radio.

FFI has also inked a similar agreement that could see it shipping 1.5 tonnes of green hydrogen to the United Kingdom each year. That would make the green energy producer the UK’s major hydrogen suppler.

Finally, FFI has shaken on a deal with France-based aircraft manufacturer, Airbus. The deal is expected to see zero-emissions aircraft taking to the sky.

Fortescue share price snapshot

The Fortescue Metals share price is struggling on the ASX today.

It’s currently down 6% on its previous close and almost 2% lower than it was at the start of 2022.

It has also fallen around 15% since this time last year.

The post Could Fortescue Future Industries’ green hydrogen help Europe ditch Russian energy? appeared first on The Motley Fool Australia.

More reading

• Why is the Fortescue share price sinking 6% on Monday?
• Which ASX 200 mining shares were the worst-performing on Friday?
• The Fortescue share price is down 8% in May. Is now the time to buy?
• ASX 200 mining shares slump, dragging index into the red
• Leading brokers name 3 ASX shares to sell today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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