Category: Stock Market

The Viva Energy Group Ltd (ASX: VEA) share price is in focus as the company welcomes an update to government support for its Geelong Refinery, lifting the critical Fuel Security Services Payment (FSSP) Margin Marker cap and collar by 3.6 cents per litre.

What did Viva Energy report?

• The Federal Government has increased the Geelong Refinery FSSP Margin Marker cap and collar by 3.6 Australian cents per litre (Acpl), equivalent to A$5.7 per barrel.
• FSSP support will now kick in when the average Geelong Refining Margin Marker drops below 10 Acpl (A$15.9/bbl) over a calendar quarter.
• The maximum support rate remains at 1.8 Acpl (A$2.9/bbl) on key transport fuel output.
• Viva Energy has invested roughly $500 million in refinery and storage projects since FSSP began, bolstering fuel security.
• Additional fuel storage infrastructure has been completed in Perth and South Australia.

What else do investors need to know?

The latest boost to the FSSP means support for the Geelong Refinery will better reflect today’s higher operating and capital costs. This follows extensive consultation with the government to ensure local refining remains viable and continues supplying about 20% of Australia’s fuel needs.

Viva Energy completed major investments over recent years, including an upgrade to produce low sulphur petrol and the construction of new diesel storage. These projects help meet stricter environmental standards and strengthen supply chains for both Victoria and the nation.

What did Viva Energy management say?

CEO and Managing Director Scott Wyatt said:

Today’s announcement underscores the important role that domestic refining plays in strengthening Australian energy security. Viva Energy is proud to own and operate one of the two refineries, that together produce approximately 20% of the country’s fuel requirements. Viva Energy’s refinery at Geelong produces approximately 50% of Victorian fuel requirements and holds a significant proportion of the country’s oil and fuel reserves. We welcome the Federal Government’s continued support for domestic refining.

What’s next for Viva Energy?

With the revised FSSP in place until at least the decade’s end, Viva Energy’s Geelong Refinery gains more stable financial backing. This allows the company to focus on further improvements, potentially advancing sustainability and energy security goals as part of its long-term strategy.

Investors can expect Viva Energy to maintain its investments in storage infrastructure and cleaner fuels, consolidating its role as a cornerstone of Australia’s fuels supply network.

Viva Energy share price snapshot

Over the past 12 months, Viva Energy shares have risen 42%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Viva Energy welcomes government boost to refinery support 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.

Ampol Ltd (ASX: ALD) shares are on the move on Friday morning.

At the time of writing, the ASX 200 stock is up 4% to $34.29.

Why is this ASX 200 stock rising today?

The fuel supplier’s shares are pushing higher following the release of an announcement outlining changes to the Fuel Security Services Payment (FSSP) and an update on its fuel supply operations.

According to the release, Ampol has welcomed amendments to the FSSP, which is a government support scheme designed to help maintain domestic fuel refining in Australia.

The key change is an increase in the collar, which is the level at which payments begin, from 6.4 cents per litre to 10.0 cents per litre. There is also a favourable adjustment to how refinery margins are calculated for Ampol’s Lytton refinery.

Management believes these changes will help reduce earnings volatility and better reflect the higher costs involved in refining fuel.

In simple terms, the FSSP acts as a safety net for refineries when profit margins are weak.

Under the revised structure, Ampol may receive financial support when refining margins fall below certain levels. This support is based on how much fuel is produced.

Ampol estimates this could provide up to $108 million per year in support for its Lytton refinery during periods of low margins.

Supply chain update

The ASX 200 stock also provided an update on fuel supply conditions, particularly in light of ongoing disruption in global oil markets.

Ampol noted that conflict in the Middle East has impacted global supply chains, especially in Asia where much of Australia’s imported fuel originates.

However, the company said it was well prepared, with sufficient crude oil and fuel inventories and confirmed supply orders at the start of the disruption.

To further support domestic supply, Ampol has delayed maintenance at its Lytton refinery. This is expected to increase local fuel production by around 300 million litres.

Commenting on the news, the ASX 200 stock’s CEO, Matt Halliday, said:

We welcome the adjustments made to the FSSP, which effectively increase the level at which payments under the scheme will commence. The important role Australian refineries play in supporting the resilience of our domestic fuel supply is being reinforced in the current global oil market environment. The amendments recognise the significant cost increases, and capital investment made, since the scheme began in 2021 and the importance of maintaining an economically viable domestic oil refining capability in Australia for the medium term by providing support when refiner margins do not cover the cost of production.

The amendment of the collar to 10 Acpl and the favourable adjustment to the Government’s refiner margin calculation, will also assist in reducing the volatility in Lytton earnings over time. “We look forward to continuing the dialogue with the Federal Government in the months ahead on the long-term prospects for transport fuels refining in Australia.

The post This ASX 200 stock is charging higher on big news appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

The Ampol Ltd (ASX: ALD) share price is in focus today as the company welcomes amendments to the Fuel Security Services Payment (FSSP), including raising the scheme’s support “collar” to 10.0 Acpl and deferring major refinery maintenance to boost domestic fuel supply.

What did Ampol report?

• FSSP collar increased from 6.4 to 10.0 Acpl; cap remains at 1.8 Acpl
• Favourable amendment to the Government Margin Marker calculation for Lytton refinery (+0.62 Acpl)
• Planned Turnaround & Inspection (T&I) at Lytton refinery deferred to August 2026
• Additional ~300 million litres of domestic fuel production enabled during deferral
• Scheme may provide up to $27 million support per quarter for Lytton’s operations at low margins

What else do investors need to know?

Ampol will engage in a second phase of the FSSP review in 2026, targeting longer-term fuel supply resilience and refining in Australia. Any material changes to the FSSP will depend on the outcome of this second-phase review.

The global oil market has been impacted by Middle East events and a reduction in Chinese fuel exports. Despite some disruptions in Asia, Ampol had strong inventory and confirmed orders at the outset of the conflict, helping ensure ongoing supply for its customers in Australia and New Zealand.

Ampol’s proactive deferral of its T&I maintenance at Lytton will help meet increased local demand, while a temporary easing of fuel standards by the government allows even more locally produced petrol to be sold domestically.

What did Ampol management say?

Matt Halliday, Managing Director and CEO, said:

We welcome the adjustments made to the FSSP, which effectively increase the level at which payments under the scheme will commence. The important role Australian refineries play in supporting the resilience of our domestic fuel supply is being reinforced in the current global oil market environment. The amendments recognise the significant cost increases, and capital investment made, since the scheme began in 2021 and the importance of maintaining an economically viable domestic oil refining capability in Australia for the medium term by providing support when refiner margins do not cover the cost of production.

The amendment of the collar to 10 Acpl and the favourable adjustment to the Government’s refiner margin calculation, will also assist in reducing the volatility in Lytton earnings over time. We look forward to continuing the dialogue with the Federal Government in the months ahead on the long-term prospects for transport fuels refining in Australia.

What’s next for Ampol?

Ampol will continue working with the Federal Government on the FSSP’s phase two review during 2026, which is expected to shape Australia’s future fuel resilience and refining sector.

In the short term, Ampol remains focused on maintaining reliable supply for customers, taking advantage of regulatory changes and operational flexibility to help meet domestic needs amid current global supply challenges.

Ampol share price snapshot

Over the past 12 months, Ampol shares have risen 35%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Ampol welcomes stronger refinery support and domestic supply boost appeared first on The Motley Fool Australia.

More reading

• Viva Energy welcomes government boost to refinery support
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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.

Flight Centre Travel Group Ltd (ASX: FLT) shares are marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) travel stock closed yesterday trading for $11.54. In early morning trade on Friday, shares are changing hands for $11.62 apiece, up 0.7%.

For some context, the ASX 200 is down 0.2% at this same time.

That’s today’s price action for you.

Now here’s how the company is pursuing growth opportunities in the United Kingdom.

Flight Centre shares higher amid UK acquisition

Flight Centre shares are catching investor attention today after the company announced it has acquired Fresh Approach Holdings Limited.

Fresh Approach is a UK brand-experience, creative and meetings and events (M&E) agency. The company was founded in 2004 and employs about 65 people. Fresh Approach CEO Lee Harris and his leadership team will continue to run the business, which has offices in Manchester and Edinburgh.

The company did not divulge how much it is paying to acquire Fresh Approach, but reported it is not material to the company. The ASX 200 travel stock will use cash reserves to fund the acquisition.

Flight Centre shares could catch longer-term tailwinds, with Fresh Approach forecast to deliver about 18 million pounds (AU$34.2 million) in turnover and 1.2 million pounds in earnings before interest, tax, depreciation and amortisation (EBITDA) during the 2026 financial year (FY 2026).

Flight Centre said the acquisition will deliver a more seamless customer experience and expand its addressable markets beyond traditional travel management into M&E and professional services.

What did management say?

Commenting on the acquisition that could offer longer-term support for Flight Centre shares, managing director Graham Turner said, “Fresh is a quality business, with a strong market reputation and blue-chip client roster, that elevates our position in an attractive sector and gives us broader capability to support our corporate customers.”

Turner continued:

With Fresh’s addition, we can deliver a fully integrated M&E offering in the UK, reduce reliance on external suppliers and capture more value within the group.

This acquisition helps us deepen relationships with our corporate clients by offering more of the services they need in one place – creative, production and travel management delivered seamlessly.

Fresh unlocks meaningful growth opportunities on both sides of the relationship, from cross-selling into our UK corporate customer base to supporting Fresh’s clients with our global travel capabilities.

Fresh Approach CEO Lee Harris added, “Our capabilities will work in unison to remove the friction between planning and creation, all underpinned by strategic thinking and world class creative.”

With today’s intraday gains factored in, Flight Centre shares remain down 18.7% over 12 months.

The post Flight Centre shares lift amid latest UK acquisition news appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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 Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Premier Investments Ltd (ASX: PMV) shares are racing higher on Friday morning.

At the time of writing, the retail conglomerate’s shares are up 8% to $13.55.

This follows the release of its half-year results before the market open.

Premier Investments shares jump on results day

For the six months ended 24 January, the company reported a 0.5% decline in Premier Retail sales to $452.8 million. This reflects a 4.9% increase in Peter Alexander sales to $312.3 million, which was offset by a 10.7% decline in Smiggle sales to $140.5 million.

During the half, four new Peter Alexander stores were opened and four were either expanded or relocated with further investment in fit out and customer experience. Management notes that over 15 further opportunities have been identified for both new and larger format stores in existing markets to better showcase a wider product offering.

Smiggle sales were down partly due to an 8.7% reduction in store numbers to 282 stores as the brand continues its focus on operational efficiencies. Smiggle’s wholesale channel delivered growth in first half driven by long term agreements in the Middle East and Indonesia.

To address this decline, following a major review, the company has “set a clear strategic objective to reclaim the 6-12 year core customer market through innovative product, marketing and visual merchandising, utilising Smiggle’s existing multichannel formats to drive sustainable sales and profit growth.”

First-half underlying Premier Retail EBIT came in at $119.3 million, which is largely in line with its guidance for “circa $120 million.”

On the bottom line, net profit after tax was $101.7 million. This was slightly stronger than the $99.3 million that UBS was forecasting for the half.

This has allowed the company to declare a fully franked interim dividend after skipping one last year due to its demerger and capital return. It revealed a payout of 45 cents per share. Based on its last close price, this equates to a generous 3.6% dividend yield.

Management commentary

Commenting on the half, the company’s chair, Solomon Lew, said:

Peter Alexander performed strongly again in 1H26 and continues to consolidate its position as the country’s leading sleepwear and gifting brand. The Brand’s priorities in the second half are driving further engagement from a loyal customer base and continuing local and global expansion of the brand footprint.

Smiggle maintains strong brand fundamentals and a well-established multi-channel footprint. The strategic review has quickly identified growth opportunities available to Smiggle and we will be working on product repositioning, simplification and brand elevation over the second half and beyond with a clear plan to bring this brand back to growth in FY27. We look forward to keeping our stakeholders updated on this.

Outlook

A strong second half is expected for the Peter Alexander brand, with its performance ahead of expectations after the first seven weeks.

And while Smiggle’s struggles are expected to continue in the near term, a return to growth is expected in FY 2027.

In light of this, subject to current trading conditions continuing, the company expects Premier Retail FY 2026 Underlying EBIT to be around $183 million. This will be down from $195.4 million in FY 2025.

The post Premier Investments shares jump 8% on results and big interim dividend 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Furniture company Koala is aiming to raise $20 million in new capital and list on the ASX, with the profitable company on track to substantially grow revenue this year.

The company will issue $20 million worth of new shares as part of the initial public offer while existing shareholders will sell $48.1 million worth of shares, for a total of $68.1 million available to new investors.

The company will be valued at $305.3 million on listing following the capital raise.

Company growing strongly

The prospectus says the company was founded in 2015 and experienced early success selling its Koala mattress, “quickly becoming a leading Australian mattress brand”.

The company launched in Japan in 2017, and in 2018 launched its first sofa product in Australia, with that range also subsequently expanding to Japan.

 The prospectus says further:

In November 2023, Koala launched in the US market with a targeted expansion and disciplined investment, delivering significant early growth. In 2025, Koala expanded its international footprint further with the launch into the UK market.

Chair Michael Gordon said the company was well-placed for growth.

As a furniture company, Koala is exposed to the global furniture market, which benefits from tailwinds including the growth of e‑commerce, increased time spent at home due to the shift to remote work, a desire to maximise the utilisation of living spaces, a growing emphasis on convenience, premiumisation, and the demand for more sustainable products. The business has a significant opportunity before it to grow in Koala’s established markets, scale its presence in newer markets and enter into additional markets over time to grow the business. The global furniture market has shown relatively steady and consistent rates of moderate growth in Koala’s key categories. Koala’s ability to enter new markets and scale is driven by its capital‑light business model and in‑house innovation capabilities, which enables the team to promptly adapt to changing consumer needs and market trends.

Chief executive officer and cofounder Dany Milham said in the prospectus the company was dedicated to providing quality, durable furniture.

He said the company’s success internationally, “reflects a broad appeal for Koala’s Australian design, innovation, and brand”.

Koala trading profitably

The prospectus shows that the company generated revenue of $276.7 million in FY25, and made a net profit of $6.6 million.

The company is forecasting FY26 revenue of $332 million and net profit of $12.3 million.

The company will be named The Koala Company Ltd and trade under the ticker KOA.

The offer period for new shares closes on March 24, with the shares expected to start trading on the ASX on 31 March.

The post Which fast-growing Aussie furniture brand is about to list on the ASX? 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 cybersecurity industry is being tipped by analysts to grow very strongly over the next decade as cyber threats increase and more infrastructure shifts to the cloud.

One way that investors could gain exposure to this trend is with the ASX cybersecurity stock in this article.

That’s the view of analysts at Bell Potter, who have just named it as a buy.

Which ASX cybersecurity stock?

The stock that Bell Potter is recommending to clients is Infotrust Ltd (ASX: ITS).

Infotrust, which was previously named Spirit Technology Solutions, is a leading provider of cyber security solutions and secure managed technology services to both small and medium businesses and enterprise customers in Australia.

Bell Potter highlights that the ASX cybersecurity stock provides its products and services across a wide range of sectors, including healthcare, utilities, education and government, and has over 1,000 customers nationally.

New acquisition

The broker appears pleased with news that Infotrust is acquiring Catalyst Cyber for $5 million. It notes that it is consistent with management’s target of being Australia’s leading cyber first technology services provider. It said:

Infotrust announced the acquisition of Catalyst Cyber for initial consideration of c.$5.0m, comprising approximately $3.5m in cash and $1.5m in Infotrust shares. The consideration equates to around 5x EBIT. The acquisition is expected to contribute approximately $1.3m revenue and $0.3m underlying EBITDA in 2HFY26. (For reference, Infotrust recently provided guidance for underlying EBITDA of >$3m in 2HFY26 so this is around a 10% uplift in H2.)

Catalyst Cyber is a Canberra-based cyber security consultancy focused on Federal Government customers and has deep capability across security advisory, security engineering, incident response and assurance services. The acquisition is consistent with Infotrust’s strategic vision to be Australia’s leading cyber first technology services provider.

In response to the news, Bell Potter has boosted its earnings estimates. It now expects underlying EBITDA of $3.8 million in FY 2026, $6.9 million in FY 2027, and then $8 million in FY 2028.

Major upside

According to the note, the broker has retained its buy rating with an improved price target of 62 cents (from 60 cents).

Based on its current share price of 43 cents, this implies potential upside of 44% for investors over the next 12 months.

Commenting on its recommendation, Bell Potter concludes:

We have reduced the multiple we apply in our EV/EBITDA valuation from 15x to 12.5x and increased the WACC we apply in the DCF from 9.4% to 9.7% given the continued sell-off in technology stocks since we last updated our target price. The net result is still a modest 3% increase in our TP to $0.62 which has all been driven by an increase in the DCF. This TP is >15% premium to the share price so we maintain our BUY recommendation.

Note we expect Infotrust to make further acquisitions in the cyber security sector given the much strengthened Balance Sheet following the sale of the Cloud & Communications business and these are likely in the near term. Like this acquisition, we expect future acquisitions to be earnings accretive and so provide an uplift to our forecasts as well as strengthen the company’s position as a sovereign cyber security provider.

The post Why Bell Potter is bullish on this ASX cybersecurity stock with 44% upside appeared first on The Motley Fool Australia.

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The Atlas Arteria Group (ASX: ALX) share price is in focus after the company announced a new distribution of 20 cents per security (unfranked), for the six months to 31 December 2025.

What did Atlas Arteria report?

• Distribution declared: 20 cents per security, unfranked
• Ex-dividend date: 25 March 2026
• Record date: 26 March 2026
• Payment date: 9 April 2026
• Distribution includes $0.19 foreign dividend and $0.01 conduit foreign income

What else do investors need to know?

The distribution relates to the second half of the 2025 financial year and is made up of two components: a $0.19 per security distribution from Atlas Arteria International Limited (ATLIX) and a $0.01 per security distribution from Atlas Arteria Limited (ATLAX), classified as conduit foreign income. This entire payout is unfranked, meaning investors will not receive franking credits on this distribution.

Further tax component details will be available on the Atlas Arteria investor centre website. Investors should also note that dividend plans are not offered for this payment.

What’s next for Atlas Arteria?

Atlas Arteria remains focused on delivering stable distributions to its securityholders. The company will provide further commentary and detailed financial results with the full-year 2025 report. Investors are encouraged to refer to upcoming disclosures for updates on the group’s outlook and strategy.

Atlas Arteria share price snapshot

Over the past 12 months, Atlas Arteria shares have declined 9%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Atlas Arteria announces 20 cent unfranked dividend for H2 FY25 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 energy sector has been performing strongly this year as oil prices surge.

But if you thought it was too late to invest in this side of the market, think again.

That’s because Bell Potter believes one ASX energy stock could rise 50%.

Which ASX energy stock?

The stock that Bell Potter is recommending to clients with a high tolerance for risk is Strike Energy Ltd (ASX: STX).

It is an onshore Perth Basin gas exploration and development company with material discoveries across three advanced projects. These are the 100% owned Walyering and South Erregulla projects and the West Erregulla project, which is co-owned with Hancock Prospecting.

Bell Potter notes that the company has made an increase to its reserves and contingent resources. It said:

STX has announced updated Reserves, Contingent Resources and Prospective Resources across its West Erregulla and Erregulla Deep projects. At West Erregulla, 2P Reserves have increased 20% to 251PJ (net to STX). At Erregulla Deep, an initial 2C Contingent Resource of 38PJ and 2U Prospective Resource of 117PJ has been booked.

The estimates are independently certified by Houston-based Miller & Lents, Global Oil and Gas Consultants. The update incorporates results from the Erregulla Deep-1 well (September 2024) and a Natta 3D seismic survey acquired in May 2025. This announcement was a potential value catalyst; the modest upgrade is a positive.

Big potential returns

According to the note, the broker has retained its speculative buy rating and 15 cents price target on the ASX energy stock.

Based on its current share price of 9.9 cents, this implies potential upside of just over 50% for investors over the next 12 months.

To put that into context, a $2,000 investment would turn into approximately $3,000 by this time next year if Bell Potter is on the money with its recommendation.

Commenting on its positive view of the stock, the broker said:

STX is leveraged to the Western Australia energy market where electricity and gas prices are expected to remain supportive. Walyering provides supplementary cash flow while the South Erregulla Peaking Gas Power Project is being developed (online 4Q 2026). Potential exploration success (Walyering West, Ocean Hill) remains a value catalyst. While the West Erregulla timing and development scenario remain uncertain, this asset will potentially be a large source of energy supply.

The post This ASX energy stock could rise 50%, says Bell Potter 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 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.

Genesis Energy Ltd (ASX: GNE) was placed in a trading halt today, as the company moves ahead with a major capital raising program, including a NZ$400 million entitlement offer and placement.

What did Genesis Energy report?

• Announced a NZ$400 million capital raising via a placement and pro rata rights offer
• The placement aims to raise approximately NZ$100 million
• Pro rata, renounceable rights offer to raise around NZ$300 million
• New Zealand government to maintain a 51% stake post-raising
• Placement and rights offer (excluding the Crown) fully underwritten by Jarden Partners and Jarden Securities

What else do investors need to know?

Genesis Energy requested the trading halt to allow for the completion of the shortfall bookbuild process, where eligible shareholders and institutional investors can apply for additional shares not taken up in the rights offer. This aims to ensure a fair and transparent market for all participants, as some information may otherwise reach select investors ahead of the market.

The halt is expected to remain in place until the results of the shortfall bookbuild are announced, or normal trading resumes on 24 March 2026. Genesis plans to inform the market of the outcome as soon as it is finalised, highlighting the company’s focus on transparency.

What’s next for Genesis Energy?

Genesis Energy is expected to announce the final results of its entitlement offer, including details of the shortfall allocation, within the trading halt window. The capital raised will likely strengthen Genesis’s balance sheet and support future growth initiatives, while the continued Crown stake keeps a stable ownership structure.

Investors should keep an eye out for further updates regarding the allocation and any potential impact on the Genesis Energy share price as trading resumes.

Genesis Energy share price snapshot

Over the past 12 months, Genesis Energy shares have declined 9%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Genesis Energy launches $400 million equity raising, announces trading halt appeared first on The Motley Fool Australia.

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