Santos Ltd (ASX: STO) this week reported what broker UBS described as a “strong” first-half result, beating market expectations in a period the company is describing as a transition year.

Profit down but stronger second half expected

The oil and gas major reported first-half revenue of US$2620 million, up 2% on the same period the previous year, and net profit of US$355 million, down 19%.

Santos Managing Director Kevin Gallagher said the company was entering the second half in a stronger position.

He added:

The first half marked an important step forward for Santos. We brought the Pikka project online safely and continued to progress Barossa through commissioning towards steady-state production, while the base business continued to perform strongly. Pikka achieved first oil in May, moved to continuous production in June and we lifted our first crude oil cargo last week. Production is expected to build towards the 80,000 bbl/d gross plateau late in the third quarter, and our drilling program is consistently beating technical limits, reducing the time and cost to drill a well. Barossa is safely progressing through commissioning to steady state production, with current production around 550 mmscf/d and planned to increase further to around 600 mmscf/d by end of the quarter. At steady state production the current cargo cadence is one approximately every eight days, while Darwin LNG delivered 100 per cent plant reliability in the first half.

Mr Gallagher said with the major development of Barossa and Pikka complete, the company was expecting second-half production to be 20% to 30% higher than the first half, “supporting stronger free cash flow and returns for shareholders”.

Mr Gallagher said the Papua LNG project would be a focus in the second half and was on track for a final investment decision in the fourth quarter of 2026.

He added:

Project financing continues to progress well, with at least 60 per cent targeted to be funded through project financing facilities. Strong performance from the base business and continued capital discipline are funding investment in the next generation of low-cost, high-margin production growth opportunities in our deep portfolio.

Santos shares a buy, but looking fully valued

UBS said in a note to clients following Santos’ financial report that the company’s strong dividend of US11.6 cents stood out, indicating the board had confidence in the second-half outlook.

They said the company was well-leveraged to higher oil prices.

They added:

STO has 80% of its LNG sales indexed to oil and/or Japan/Korea Marker on an approx 3 month lag, and so the spike in oil & LNG prices arising from the Middle East conflict carries stronger cashflows though to at least ~Nov-26. We expect STO will qualify for its new higher div payout (lifting from 40% of FCF ex growth to >60% of all-in FCF) when Pikka and Barossa reach plateau production, expected within the next 40 days turning on stronger cash returns from the Feb-27 result onwards.

UBS has a buy rating on Santos shares with a price target of $8.30, compared to $8.31 currently.

The post Are Santos shares a buy following their half year results? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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.

The WCM Global Growth Ltd (ASX: WQG) share price is in focus after the company posted a full-year net operating profit after tax of $66.7 million for FY2026 and announced a boost to its final fully franked dividend.

What did WCM Global Growth report?

• Net operating profit after tax: $66.7 million (down from $69.5 million last year)
• Pre-tax NTA per share: up from $2.02 to $2.18
• After-tax NTA per share: up from $1.80 to $1.94
• Portfolio return: 16.58% in FY2026 (vs benchmark’s 18.26%)
• Final fully franked dividend: increased to 2.35 cents per share (cps)
• Total FY2026 dividends paid: 8.52 cps

What else do investors need to know?

The board has revised its progressive quarterly dividend policy upwards, reflecting the company’s robust financial position. Shareholders can expect increasing fully franked quarterly dividends over the next financial year, with a total of 12.45 cps anticipated in the next 14 months.

The company’s portfolio continues to deliver strong long-term returns, outperforming its benchmark over three, five years, and since inception. Since listing in 2017, a $10,000 investment has grown to over $40,000 (before expenses and taxes, after fees and dividend reinvestment).

What’s next for WCM Global Growth?

Looking ahead, the board intends to keep lifting quarterly fully franked dividends, with payments of up to 2.60 cps forecast for Q4 FY2027. Management remains focused on long-term growth and maintaining robust performance above the benchmark.

The investment manager, AGP International Management Limited, will continue to raise WCM’s market profile to enhance share price performance and liquidity. The board sees the progressive dividend policy as a key way to add value and reward shareholders.

WCM Global Growth share price snapshot

Over the past 12 months, WCM shares have risen 15%, outperforming the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

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The post WCM Global Growth earnings: Profit lifts dividend and outlook appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Transurban Group (ASX: TCL) share price is trading lower today despite the toll road company revealing that it has been selected as the best value proposer to deliver Tennessee’s I-24 Choice Lanes project, in partnership with Ferrovial and Tikehau Star Infra. The 26-mile project has an estimated construction value of US$9.2 billion and a total concession value of around US$24.8 billion.

What did Transurban Group report?

• Transurban, with partners Ferrovial and Tikehau Star Infra, will design, build, finance, operate, and maintain the I-24 Choice Lanes in Tennessee, USA.
• The project covers 26 miles between Nashville and Murfreesboro, aiming to ease congestion and improve travel reliability.
• Estimated construction value: US$9.2 billion, with a total concession value of US$24.8 billion.
• Transurban’s equity share to be funded from existing balance sheet capacity over time.
• Financial close is expected by mid-2027, subject to finalisation of government funding.

What else do investors need to know?

This major win supports Transurban’s ongoing North American expansion and highlights its expertise in large-scale transport infrastructure. The project could strengthen the company’s global portfolio and long-term earnings outlook. However, the final capital and funding structure are yet to be finalised, with some details relying on government approvals and available concessional funding.

The project is designed to deliver more reliable travel choices for customers and potentially reduce congestion on one of Tennessee’s busiest corridors. The consortium approach with established partners Ferrovial and Tikehau Star Infra should also help manage project risk and execution.

What did Transurban Group management say?

Commenting on the news, Transurban’s CEO, Michelle Jablko, said:

The I-24 Choice Lanes Project represents an important opportunity to bring Transurban’s proven capabilities to Tennessee. The project is aligned with our strategy of pursuing disciplined, value-accretive growth opportunities in North America.

Our focus is always on the customer and creating journeys they can rely on. Together with our partners, we look forward to working with the state of Tennessee to deliver a project that transforms everyday connectivity and provides stress-free, reliable travel choice for decades to come.

What’s next for Transurban Group?

Transurban’s next steps include finalising the capital structure and securing government funding, with financial close targeted for mid-2027. The business expects to fund its share through existing balance sheet capacity over time.

This announcement furthers Transurban’s goal of disciplined growth while enhancing customer journeys in North America. Investors will be watching for updates on financial arrangements and project milestones as the I-24 Choice Lanes progresses toward construction and operation.

Transurban Group share price snapshot

The Transurban share price is trailing the S&P/ASX 200 index (ASX: XJO) slightly over the past 12 months with a decline of around 2%.

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The post Transurban Group chosen for landmark US$24.8bn Tennessee toll road project appeared first on The Motley Fool Australia.

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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 positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.