Category: Stock Market

Shares in Betmakers Technology Group Ltd (ASX: BET) were placed in a trading halt by the company before the market open today pending an announcement.

The move follows media reports that News Corporation (ASX: NWS) has joined a consortium that intends to launch a new online sports betting company in Australia.

According to the Wall Street Journal, owned by News Corp, unnamed sources familiar with the matter say the consortium intends to use Betmakers technology to power the new business.

Before the news broke, the Betmakers share price rose by almost 5% yesterday to finish the day at 65 cents. Betmakers will remain in a trading halt until either the announcement is made or Friday’s market open.

Just in time for Spring carnival racing

The report said a Las Vegas digital sports gambling investment company Tekkorp Digital (NASDAQ: TEKKW) and Australian industry executive Matthew Tripp are working with News Corp to establish the new business. It has a working name of BetR.

The consortium is apparently preparing to announce the new company this week. They hope to launch the product in time for the Australian Spring horse racing season, which starts in late August.

Betmakers share price summary

As my Fool colleague James reported yesterday, Betmakers is currently among the top 10 most shorted shares on the ASX. Investors appear to be concerned over its valuation and cash burn.

The Betmakers share price is down 22% year to date and 48% over the past 12 months.

The post Betmakers share price halted amid reports of major News Corp deal appeared first on The Motley Fool Australia.

More reading

• The Betmakers share price is surging 6% on Tuesday. Could this be why?
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• Why is the Betmakers (ASX:BET) share price having such a lousy week?

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Big River Gold Ltd (ASX: BRV) share price is skyrocketing today after the company announced an all-cash takeover offer from multinational mining company Aura Minerals Inc (TSE: ORA).

Big River Gold is a minerals explorer whose main focus is its 100%-owned Borborema Gold Project in Brazil. The mine has a resource of 2.43Moz of gold.

Aura is offering to buy Big River Gold for 36 cents per share. That’s a 33% premium on yesterday’s closing price of 27 cents. ASX gold investors have wasted no time bidding up the company’s shares this morning to cash in on the arrangement. While it’s not a done deal yet, all Big River Gold directors and two major shareholders representing almost 40% of the vote have declared they’ll be voting yes to the buyout.

At the time of writing, the ASX gold share is trading at 34.5 cents, up 27.78%.

‘Vote yes’, says Big River Gold management

So first, here’s the nitty-gritty. Big River Gold has executed a binding scheme implementation deed with Aura proposing that Aura subsidiary Aura BidCo will acquire 100% of Big River Gold by way of a scheme of arrangement between the ASX gold share and its shareholders.

Big River Gold’s independent board committee is recommending shareholders vote in favour of the deal unless a superior offer is made, subject to an independent expert confirming it’s in the best interests of investors.

The key highlights are as follows:

• The offer of 36 cents per share represents a premium of 30% to the 30 trading day VWAP [volume weighted average price] of 27.7 cents per share; 42.3% to the 60 trading day VWAP of 25.3 cents per share; and 44% to the 90 trading day VWAP of 25 cents per share
• The scheme consideration values Big River’s diluted equity at approximately $91.7 million
• Each Big River Gold director intends to vote in favour of the deal
• The deal is subject to various conditions, including approval from ASIC and shareholders

Major shareholders give the thumbs up

Two major investors in the ASX gold share have indicated their intention to vote in favour of the buyout.

Canadian investment company Dundee Resources Limited (voting power 19.3%) plans to vote yes and will likely receive unlisted shares in Aura BidCo in lieu of the cash consideration.

Australian private investment company Copulos Group (voting power 18.8%) has signed a voting intention statement saying it will vote in favour of the takeover, subject to certain conditions.

The scheme meetings are expected to be held in early to mid-July, with implementation to follow in July or August.

If the scheme proceeds, Big River Gold will become a subsidiary of Aura. It will be delisted from the ASX and held under a joint venture between Aura and Dundee.

Big River Gold has appointed NextLevelCorporate as its financial advisor and MinterEllison as its legal
advisor. Shareholders will receive a scheme booklet in June and will likely vote on the takeover in July.

Big River Gold share price recap

The ASX gold share has a 52-week high price of 42 cents per share. It was swapping hands at that level back in May last year. The share price has drifted down over the past 12 months by almost 18%.

The post This ASX gold share is surging 27% on takeover news appeared first on The Motley Fool Australia.

More reading

• Why has the Newcrest share price gained 11% in a month?
• Why are ASX 200 travel shares taking off on Wednesday?
• Why are Webjet shares still among the most shorted on the ASX
• Here’s why the Soul Patts share price is getting whacked today
• Faults and financials: Why is the AGL share price getting zapped 6% today?

Motley Fool contributor Bronwyn Allen 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 Bruce Jackson.

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The Newcrest Mining Ltd (ASX: NCM) share price has surged in the last month, nearing its 52-week high of $29.27.

Since 20 March, the gold miner’s shares have gained around 10.8%, making it one of the best performers across the sector. In comparison, the share price of fellow miner Northern Star Resources Ltd (ASX: NST) increased by 5.8% across the same timeframe.

At the time of writing, Newcrest shares are taking a slight breather to swap hands at $28.77, down 0.24%.

What’s driving the Newcrest share price higher?

It seems the acceleration in the price of gold has boosted investor sentiment. Traditionally, investors flock to the yellow metal as a safe-haven asset when there is uncertainty in the market.

While the world is slowly moving past COVID-19, the war between Russia and Ukraine has sparked a gold rush.

Last month, the price of gold soared above the US$2,000 barrier but has since fallen a touch under. At the time of writing, gold is fetching US$1,946 an ounce.

Compared to 20 March, the precious metal had been priced at around US$1,920. This represents an increase of about 1.3% over the 30-day period.

Accordingly, Newcrest shares have also risen from $25.97 a month ago to today’s price of $28.77.

It’s worth noting that the price of gold spiked to an all-time high of US$2,072.90 on 7 August 2020. Newcrest shares closed at $33.27 on the day.

You may be wondering why the company’s share price is nowhere near the level it was in 2020, given the price of gold is almost the same.

This is because of other macroenvironmental factors, such as the United States Federal Reserve’s intent on lifting interest rates this year. It noted that inflation accelerated to 6.9% in the US, the highest rate in nearly four decades.

Following its lead, the Reserve Bank of Australia signalled its move with two expected rate hikes for 2022.

Rising interest rates can drag down the price of precious metals and it appears investors are mixed on these impacts for the moment.

What do the brokers think?

A number of brokers rated the Newcrest share price with different price points in late March.

The team at UBS cut its outlook on the company’s shares to “neutral” from “buy”. However, the broker raised its 12-month price target by 2.3% to $27.10.

Based on the current share price, this implies a potential downside of 6% for investors.

On the other hand, Morgan Stanley analysts reduced their rating on Newcrest shares by 1% to $33.70. They believe the company’s shares still have some room to bounce higher.

This implies a potential upside of 17% from where Newcrest shares trade today.

The post Why has the Newcrest share price gained 11% in a month? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX mining companies by market cap
• How is the Newcrest share price tracking in 2022?
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• Yield curve inversion is bad news for ASX shares except for this sector

Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

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ASX 200 travel shares are climbing today after US travel shares rallied overnight.

The Flight Centre Travel Group Ltd (ASX: FLT) is up 2.53% at the time of writing, while Webjet Limited (ASX: WEB) is 2.41% in the green. Meanwhile, the Qantas Airways Limited (ASX: QAN) share price is 0.74% higher.

Let’s take a look at what could be impacting ASX travel shares today.

US travel shares rebound

ASX 200 travel shares are following in the footsteps of their US counterparts today. The Delta Air Lines, Inc (NSE: DAL) share price climbed 2.16%, American Airlines Group Inc (NASDAQ: AAL) surged 5.66% while United Airlines Holdings Inc (NASDAQ: UAL) jumped 4.5% in the US on Tuesday.

These shares surged after a Florida court struck down the mask mandate on planes. Airlines were quick to respond to the ruling, although it is still subject to a possible appeal from the US government.

Falling oil prices may also have impacted both ASX 200 and US travel shares. Fuel is a major operating cost for airlines. WTI crude oil prices dropped 5.2% overnight and Brent crude oil dropped 5.1%.

However, oil prices are now recovering, with Brent Crude up 1.04% to US$108.37 a barrel while WTI crude oil is 0.92% higher to US$103.50 a barrel.

Closer to home, travel rules have recently been relaxed for overseas arrivals. As of Monday 18 April, international arrivals into Australia are no longer required to undertake a COVID-19 test before their departures. Cruise ships are also now able to arrive in Australia.

An Easter holiday travel boom saw the Gold Coast at its busiest since 2019, the ABC reported.

Gold Coast holiday apartment manager Marion Simon told the publication:

It’s got that vibe again — the restaurants are full, the people are happy, the guests have been absolutely amazing. We are literally 100 per cent full.

New Zealand opened its borders to Australian travellers last week, providing another boost for ASX 200 travel companies.

ASX travel share recap

Flight Centre shares have surged 24% in the past year, while Webjet shares have jumped 15%. In the last year, Qantas shares have also risen 8%.

In comparison, the benchmark  S&P/ASX 200 Index (ASX: XJO) has climbed about 8% in a year.

The post Why are ASX 200 travel shares taking off on Wednesday? appeared first on The Motley Fool Australia.

More reading

• Why are Webjet shares still among the most shorted on the ASX
• Qantas share price slides following Easter travel woes
• Here are the 5 best performing ASX travel shares of 2022 so far
• The Webjet share price has dropped 9% in six months. Is now the time to pounce?
• These are the 10 most shorted ASX shares

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 Flight Centre Travel Group Limited and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Webjet Limited (ASX: WEB) share price has continued to move in circles since the start of 2022.

This follows the company’s relatively quiet period with its last price-sensitive announcement reporting its half year results.

While the online travel agent’s company’s shares have risen 14% year to date, it’s still down from November 2021 levels.

At the time of writing, Webjet shares are up 1.55% to $5.90.

Webjet shares in top 10 open ASX short positions

The negative investor sentiment on the Webjet share price can be attributed to the sluggish recovery of the travel market. This has ultimately attracted a large number of short-sellers to the company’s registry.

Short-selling is a common trading strategy that aims to profit from the fall in the price of a security. The goal is for an investor to borrow shares and sell the shares, and then buy them back at a lower price for a profit.

On 11 April, the Australian Securities & Investments Commission (ASIC) released its short position report revealing the level of short interest within companies.

As such, Webjet remained in the top 10 list with 10.54% of its shares being heavily shorted by investors.

In comparison, the government body had a short interest of 7.87% in Webjet at the start of the calendar year.

Given the large increase in short positions being taken up, it appears investors believe the company’s performance could be underwhelming.

Webjet is scheduled to release its FY22 full year results within the next five weeks.

What do the brokers think?

A couple of brokers have rated the company’s share price with varying price points over the last week.

The team at Citi raised its view on the company’s outlook to “buy” from “neutral” on Webjet shares. It also lifted its 12-month price target by 0.6% to $6.50. This implies a potential upside of 10% for investors.

On the other hand, analysts at Macquarie put out a more bearish tone, slashing its rating by 4.9% to $5.80. It seems the broker considers that the company’s shares are overvalued for the time being. Based on the current Webjet share price, this implies a downside of around 2%.

Webjet share price summary

Over the past 12 months, the Webjet share price has risen by about 14%.

In comparison, the Flight Centre Travel Group Ltd (ASX: FLT) share price has gained 22% across the same time frame.

Webjet presides a market capitalisation of about $2.24 billion and has approximately 380.51 million shares outstanding.

The post Why are Webjet shares still among the most shorted on the ASX appeared first on The Motley Fool Australia.

More reading

• Here are the 5 best performing ASX travel shares of 2022 so far
• The Webjet share price has dropped 9% in six months. Is now the time to pounce?
• These are the 10 most shorted ASX shares
• These were the best performing ASX 200 shares last week
• ASX 200 travel shares had a super day. What’s happening?

Motley Fool contributor Aaron Teboneras 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 Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It’s been a rather pleasant day of trading for the S&P/ASX 200 Index (ASX: XJO) so far this Wednesday. At the time of writing, the ASX 200 is up a pleasing 0.34% or so at just under 7,600 points. But that sentiment is seemingly not filtering through to the Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), or Soul Patts, share price.

Soul Patts shares are currently well in the red today, despite the green of the broader market. At the present time, this ASX 200 conglomerate is trading at $28.55 each, a good 0.87% down from the $28.82 price the company closed at yesterday.

Soul Patts share price falls as company trades ex-dividend

So why are Soul Patts shares underperforming the market so convincingly today? Well, the answer is simpler and more pleasant than one might think. Today marks the occasion of Soul Patts’ latest ex-dividend date. Yes, the company has just traded ex-dividend for its upcoming interim shareholder payment.

This means that from today, no new Soul Patts investors are eligible to receive the company’s latest dividend. Because this payment is now effectively lost for new investors, its value has left the Soul Patts share price. That is almost certainly why we are seeing the company’s shares seemingly bucking the markets today.

Any investor who bought into Soul Patts before today’s trading though can look forward to the company’s latest interim dividend, which will be paid out on 13 May. This dividend will be worth 29 cents a share, fully franked.

This represents a healthy 11.5% rise on last year’s interim dividend of 26 cents per share. But this might not come as a surprise to any long-term investor in Soul Patts. This company is famous for its two-decade-long streak of giving investors an annual dividend pay rise. Indeed, Soul Patts has been increasing its annual dividend like clockwork every year since 2000.

At the current Soul Patts share price, this ASX 200 share has a dividend yield of 2.28%.

The post Here’s why the Soul Patts share price is getting whacked today appeared first on The Motley Fool Australia.

More reading

• Keen to bag the Washington H Soul Pattinson dividend? Read this
• 2 defensive ASX dividend shares for long-term income
• Top ASX dividend shares to buy in April 2022
• Why has the Washington H. Soul Pattinson share price leapt 13% in 3 weeks?
• These are 2 of the most diversified ASX 200 shares

Motley Fool contributor Sebastian Bowen owns Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The lights are low on the AGL Energy Limited (ASX: AGL) share price today after news of an outage at the Loy Yang power station.

Following the announcement this morning, shares are down the most of any company in the S&P/ASX 200 Index (ASX: XJO). In specific terms, the AGL share price is down 6.2% to $8.25 as we head into the afternoon.

Outage creates a headache for more than just shareholders

Prior to the market opening this morning, one of Australia’s largest energy retailers announced that a problem had occurred at the Loy Yang A power station in Victoria. This is a coal-fired power station responsible for supplying around 30% of the south-eastern state’s electricity.

According to the release, one of the generators at Loy Yang has been taken out of service due to an electrical fault. The details surrounding the cause of the fault are currently under investigation by the company.

At this stage, AGL is uncertain of how long the generator may be out of action. However, the utility giant has made the Australian Energy Market Operator aware that it could be until 1 August 2022. Although, a caveat was given that this estimate is subject to change as the situation develops.

While the immediate pain is being felt by shareholders, with the AGL share price falling today, the fault could create an issue for Victoria’s electricity supply.

Losing the generator means the Loy Yang power station is down a quarter of its typical capacity. With the winter peak period just around the corner, mitigating the shortfall in electricity supply could present its own challenge.

What else could be hurting the AGL share price?

Recently, AGL Energy completed a seven-year-long endeavour to upgrade the systems at Loy Yang A. This undertaking required $60 million to ensure the power station is equipped to see out the rest of its tenure.

In February, the company made its intentions clear that it wants to close Loy Yang A earlier than previously guided. In turn, the coal-powered plant is now slated for shutdown no later than 2045. Yet, that date remains more than 20 years into the future.

Ultimately, today’s electrical fault could have shareholders nervous about the capital needed to keep Loy Yang A operational in future years. As such, market participants are going cold on the AGL share price today.

Lastly, the company stated it will provide an update with any financial impact once more is known.

The post Faults and financials: Why is the AGL share price getting zapped 6% today? appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Ramsay rockets and Rio Tinto disappoints
• Why is the AGL share price having such a stellar start to the week?
• AGL share price in the green amid ‘virtual battery’ deal
• What was the highest ever AGL Energy share price?
• Rain or sunshine for ASX renewable shares in the March quarter?

Motley Fool contributor Mitchell Lawler 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 Bruce Jackson.

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The Petratherm Ltd (ASX: PTR) share price is storming ahead today on a major discovery.

The ASX miner’s shares are currently swapping hands at 16 cents, a 146% gain. In earlier trade, the company’s shares shot 192% higher to 19 cents. In contrast, the  S&P/ASX 200 Index (ASX: XJO) is up 0.34% at the time of writing.

Let’s take a look at what this company discovered.

Rare earth discovery

Drilling at Petratherm’s Comet Project led to a “major high value rare earth discovery”.

The project is located on a 1,885km landholding at the Northern Gawler Craton in South Australia.

The company uncovered “significant rare earth element (REE) mineralised clay intersections” from drilling at 44 holes. Petratherm said the REE intercepts in clays can be compared to similar rare earth deposits in China.

Out of these 44 holes, 23 returned Total Rare Earth Oxides (TREO) of more than 1,000 parts per million (ppm).

Petratherm said a further 111 drill holes contain evidence of elevated REEs. These are now undergoing further analysis.

Commenting on the results, exploration manager Peter Reid said:

The results provide strong evidence that the Northern Gawler Craton of South Australia is fertile for ionic clay hosted rare earth mineralisation.

The company is planning a 10,000-metre rotary air blast (RAB) drilling program in three weeks to test for the extent of mineralisation. Within six months, the company hopes to define the JORC resource.

Co-funding from a South Australian government Accelerated Discovery Initiative grant helped support this project.

Petratherm snapshot

The Petratherm share price has ascended 83% in the past 12 months and is up 263% this year to date.

In contrast, the benchmark ASX index has returned about 8% in the past year.

This ASX miner has a market capitalisation of about $31.8 million.

The post This ASX miner just made a major rare earths discovery, and its share price is surging 146% appeared first on The Motley Fool Australia.

More reading

• Why is the Zip share price underperforming today?
• The APA share price just powered to a 52-week high
• ASX 200 midday update: Ramsay rockets and Rio Tinto disappoints
• Missed out on Shiba Inu? This crypto could hit $1 million by 2030
• Nearmap share price falters following record quarter

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 Bruce Jackson.

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After posting a small gain yesterday, the Zip Co Ltd (ASX: Z1P) share price is back in negative territory.

This follows eight consecutive market days in the red from 5 April to 14 April, shedding around 21%.

At the time of writing, the buy now, pay later (BNPL) company’s shares are trading at $1.22, down 2.8%.

Below, we look at what could be weighing down the company’s share price.

What’s going on with the Zip share price?

Zip shares have been in the spotlight in recent times as pressure continues to mount on the BNPL market.

Despite the company recording impressive figures across its global operations, investors have focused on its bottom line.

In its half-year results, Zip registered a loss of $153.6 million compared to the $139.8 million in H1 FY21.

The company acknowledged a shift in the external environment, arguably quicker and more severe than first forecasted. In response, management refined its strategy but it is still too early to tell if this will pay off.

Not helping matters is the fall of the S&P/ASX All Technology Index (ASX: XTX), which has sunk 17% year to date.

However, today’s delisting of BNPL rival Zebit Inc (ASX: ZBT) could be the reason why investors are offloading Zip shares.

With Zebit falling victim to the overcrowded BNPL market on the ASX, it appears investors may be concerned about Zip.

Recently, the Reserve Bank of Australia signalled two rate hikes this year to slow down the rising price of goods.

What this means is that consumers are less likely to spend on discretionary items when interest rates are picking up.

The cost of debt – such as credit cards and personal loans – will require extra payments, affecting consumer spending habits.

What are the brokers saying?

After reporting its financial scorecard, a couple of brokers rated the company with varying price points.

Analysts at UBS downgraded Zip shares to a sell rating, and cut its 12-month price target by a massive 81% to $1. Based on the broker’s assessment, this implies a downside of around 20%.

Following suit, the team at Ord Minnett also reduced its stance on Zip shares by 33%, but with a price target of $4. Regardless of the diminished outlook, this implies a potential upside of 220% from where it trades today.

About the Zip share price

Over the past 12 months, the Zip share price is down 86%. Year to date Zip shares are down more than 70%.

It’s worth noting that the company’s shares reached an all-time high of $14.53 in mid-February 2021, before plummeting to multi-year low levels.

Based on the current Zip share price, the company has a market capitalisation of $856.57 million.

The post Why is the Zip share price underperforming today? appeared first on The Motley Fool Australia.

More reading

• Is there more bad news in store for BNPL shares like Zip, with Macquarie analysts ‘becoming more cautious’?
• These are the 10 most shorted ASX shares
• These were the worst performing ASX 200 shares last week
• Why has the Zip share price sunk to new multi-year lows every day this week?
• Why Bank of Queensland, Iluka, New Hope, and Zip shares are falling today

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ZIPCOLTD FPO. 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 Bruce Jackson.

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The APA Group (ASX: APA) share price has been climbing to reach another 52-week high. It’s currently up 1%.

Over the last month, the APA share price has risen by more than 10%. In the last six months, the business has gone up by 33%.

APA says that it has 15,000 kilometres of natural gas pipelines that connect sources of supply and markets across mainland Australia. It operates and maintains networks connecting 1.4 million Australian homes and businesses to natural gas. The business owns or has interests in, gas storage facilities, gas-fired power stations and renewable energy generation (wind and solar farms).

What has happened recently with APA?

Earlier this week, APA and Cooper Energy Ltd. (ASX: COE) announced that a transition agreement in relation to the Orbost gas processing plant has been extended to 30 June 2022. The two businesses are advancing discussions regarding long-term commercial arrangements.

A couple of months ago, APA said that it achieved “solid” financial results in the first half of FY22, with revenue up 4.3%. Every operating segment contributed to this growth. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 4.5% and free cash flow went up 22.6%.

The first half distribution was increased by 4.2% to 25 cents per security. The FY22 distribution guidance of 53 cents per security has been retained – this will represent a 3.9% increase on FY21.

APA pointed to a positive outlook. It notes that it’s favourably exposed to rising inflation with almost 100% of contracted revenue linked to inflation indices. This could be helpful for the APA share price. It is being widely reported that inflation is rising in Australia.

The post The APA share price just powered to a 52-week high appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares hopping to new 52-week highs today
• Does APA Group have a dividend reinvestment plan?
• Here’s what happened to the APA share price in March
• 2 defensive ASX dividend shares offering reliable income
• Why did the APA (ASX:APA) share price just ink a new 52-week high?

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 owns and has recommended APA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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