The St Barbara Ltd (ASX: SBM) share price is heading south today despite the S&P/ASX 200 Index (ASX: XJO) tracking higher.

The gold miner released a trading update for the third quarter, but has failed to appease investors.

At the time of writing, St Barbara shares are down 2.61% to $1.305 apiece.

For context, the benchmark index is up 1.06% to 7,338.1 points following a rebound on Wall Street overnight.

Let’s take a look below and see how St Barbara performed for the March quarter.

How did St Barbara perform in Q3 FY22?

For the three months ending 31 March, St Barbara produced 61,819 ounces of gold at an all-in sustaining cost (ASIC) of $2,290 per attributable ounce. This was 6% lower than the 65,523 ounces of gold achieved at an ASIC of $1,587 in the prior quarter.

Management attributed the fall in group gold production to its subpar performance at Atlantic and Leonora.

The former was hindered by lower grades from the Touquoy pit and more severe than usual winter weather conditions. Leonora, on the other hand, was impacted by lower grade and lower third-party ore volumes.

Although production dropped at both sites, this was largely offset by the resumption of production at Simberi.

Operating cash flow stood at $2 million for the period. However, after growth capital, corporate costs and tax payments, net cash contribution was negative $18 million.

St Barbara sold 56,303 ounces of gold at an average price of $2,475 per ounce. This was noticeably lower than the 76,546 ounces sold at A$2,423 per ounce in Q2 FY22.

The gold miner ended the quarter with cash on hand of $79 million, down from $94 million on 31 December. Total debts remained unchanged which included a syndicated facility of C$80 million (A$88.61 million) and $50 million.

While the report failed to match the performance of the prior quarter, investors have headed for the exits. This has sent the St Barbara share price into negative territory, with now four days of consecutive losses.

What did the head of St Barbara say?

St Barbara managing director and CEO, Craig Jetson commented:

St Barbara remains positioned to deliver on our updated full year guidance and growth opportunities, despite marginally lower quarter on quarter production achieved in the March period.

Our Leonora Operations were impacted by ongoing skilled labour shortages in Western Australia which the team has done a great job managing but we remain conscious that it is an evolving landscape which requires constant management.

At Simberi our return to operations were interrupted by a COVID-19 outbreak on the island which temporarily raised operating costs and lowered production.

FY22 outlook

Looking ahead, St Barbara is expecting to achieve its updated production guidance for FY22.

Management is forecasting consolidated gold production of between 275,000 ounces and 290,000 ounces. This is assumed at an AISC of between $1,750 and $1,870 per ounce.

About the St Barbara share price

Since the start of September 2021, St Barbara shares have moved in circles despite the price of gold accelerating.

Its shares are down 30% over the past 12 months, with losses of 10% so far in 2022.

The company’s share price reached a multi-year low of $1.208 in late January.

Based on valuation metrics, St Barbara commands a market capitalisation of roughly $1.06 billion.

The post Here’s why the St Barbara share price is trailing the ASX 200 today appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why is the Woolworths share price missing out on the ASX party today?
• ASX 200 midday update: Coles, Fortescue, and Pilbara Minerals release quarterly updates
• ‘No risk, no reward’: Exit ASX shares if you can’t stomach volatility, say experts
• 5 things to watch on the ASX 200 on Thursday

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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Shares in Silver Lake Resources Ltd (ASX: SLR) are tracing lower today and now rest 7% down at $1.85 apiece.

The company also released its quarterly activities report for the three months ending 31 March 2022 today, leaving investors to digest the outcome.

Silver Lake withdraws guidance

Key takeouts from the company’s performance last quarter include:

• Quarterly production of 53,822 ounces gold and 262 tonnes copper (55,052 ounces gold equivalent)
• Sales of 55,390 ounces gold and 246 tonnes of copper at an average sales price of A$2,493/oz
• All-in sustaining cost (AISC) of A$1,634/oz
• Cash and bullion of $287.3 million, excluding $17.7 million of gold in circuit and concentrate on hand
• Withdrew FY22 guidance due to Covid-19 related pressures on the labour market and supply chain interruptions

What else happened last quarter for Silver Lake?

The company notes that it was impacted by West Australian Government measures used to tackle the pandemic.

“March quarter operating results from Silver Lake’s Western Australian operations reflect the implications of the Western Australian Government response to COVID-19,” it said.

In particular, a combination of supply chain constraints, related definitions and treatment protocols have adversely impacted the availability of appropriately skilled professional, operational and maintenance personnel which has resulted in unavoidable disruptions to operations, an inflationary cost environment and heightened operational risk.

On that note, sales for the quarter were tilted towards the Deflector site. They came in line with the top end of the previous guidance, Silver Lake says.

However both the Deflector and Mount Monger sites saw a down-step in production this period whilst AISC remained relatively flat.

Meanwhile, gold bullion sales were down around 2% from the last quarter, whilst overall gold production was down by 4%.

Silver Lake also completed the acquisition of Harte Gold in February, taking control of operations as well from this date.

What’s next for Silver Lake Resources?

The company withdrew guidance today due to ongoing uncertainties surrounding Covid-19, and what this might mean for global supply chains and the domestic labour market.

“Whilst Silver Lake’s year to date operating performance has it positioned to meet FY22 group guidance,
the severe disruption of COVID-19 related labour shortages in March and April has exacerbated the already tight labour market and supply chain constraints,” it remarked.

Along the same lines, it continued:

As a result of the prolonged and continued uncertainty regarding Western Australian’s response to COVID19 and the implementation of a proportionate response to any future variants, Silver Lake believes it is unlikely to see an influx of international and interstate skilled workers returning to the Western Australian mining sector in the foreseeable future in preference to employment opportunities closer to home. Should these conditions and associated uncertainty continue, it will impact Silver Lake’s ability to provide robust guidance based on first principles assumptions and planning with an acceptable level of risk.

Accordingly, with the continuation of restrictions and isolation requirements on labour during Q4 FY22 and continued supply chain constraints, Silver Lake is withdrawing FY22 sales guidance as it cannot predict Q4 operating performance with an acceptable level of confidence for stakeholders to rely on.

Silver Lake Resources share price snapshot

In the last 12 months, the Silver Lake Resources share price has curled up by around 8%, and is surging more than 4% higher this year to date.

Over the past month however, it has slipped 15% into the red, and is down around 13% for the previous week of trade.

The post What just caused the Silver Lake share price to dive 7%? appeared first on The Motley Fool Australia.

More reading

• Why Cettire, Newcrest, Silver Lake, and Whispir shares are tumbling lower
• ASX 200 midday update: Coles, Fortescue, and Pilbara Minerals release quarterly updates

Motley Fool contributor Zach Bristow 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 S&P/ASX 200 Index (ASX: XJO) is bouncing back from a multi-day slump on Thursday. These shares are helping to drive it upwards with each one hitting a new 52-week high.

Right now, the index is recording a 1.07% gain.

Here’s what is driving these ASX 200 shares to trade at their highest point in more than a year.

3 ASX 200 shares climbing to long-forgotten highs

Ampol Ltd (ASX: ALD)

The share price of ASX 200 fuel and convenience retailer, Ampol, surged 4% to an intraday high of $33.55 on Thursday – a new post-COVID high.

The company has been quiet today. Though, it provided an update on its acquisition of Z Energy Ltd (ASX: ZEL) earlier this week.

The takeover was given the green light by the New Zealand High Court on Tuesday.

On the back of the thumbs up, trading of Z Energy shares will cease when the market closes tonight. The company will be delisted from the ASX on 10 May. Ampol is expected to take the reins that same day.

Orora Ltd (ASX: ORA)

ASX 200 materials share, Orora is also reaching for the stars on Thursday. It rose 4.5% to trade at $3.96 in intraday trade. That’s the highest the stock has been in more than two years.

The packaging company’s investor day presentation appears to be the catalyst for today’s gains. In it, the company revealed its outlook for financial year 2022. It noted its operating and earnings momentum has continued beyond the release of its half-year results. It’s still expecting its earnings before interest and tax (EBIT) for this financial year to increase on that of financial year 2021.

The company also believes its upcoming final dividend will be at the top end of its targeted 60% to 80% payout range. Its recent eight-cent interim dividend was the highest ever offered by Orora.

Finally, Orora noted it is well placed to explore strategic acquisitions in the near-term.

Viva Energy Group Ltd (ASX: VEA)

Another ASX 200 energy share joins today’s list. The Viva Energy share price reached an intraday high of $2.79 on Thursday – the highest it’s been since 2019.

There’s been no news out of the fuel provider to explain its share price gains today.

Right now, it’s the third-best performing S&P/ASX 200 Energy Index (ASX: XEJ) stock, trailing Ampol and Whitehaven Coal Ltd (ASX: WHC).

The post 3 ASX 200 shares smashing new 52-week highs today appeared first on The Motley Fool Australia.

More reading

• 3 ASX All Ordinaries shares scaling new multi-year peaks today
• 3 ASX 300 shares smashing new multi-year highs on Wednesday
• ASX 200 lunch update: GrainCorp jumps on earnings upgrade, Pro Medicus signs $32m deal
• Ampol share price nears a new 52-week high following milestone approval
• Budget fuel excise cut: Which ASX shares could benefit?

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 Bruce Jackson.

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In some sweet relief, the S&P/ASX 200 Index (ASX: XJO) is rebounding strongly today after the savage selloff we saw earlier in the week. At the time of writing, the ASX 200 is up by a healthy 1.14% at just over 7,340 points.

So let’s dig deeper into these gains and have a look at the shares currently topping the ASX 200’s volume charts, according to investing.com.

The 3 most-traded ASX 200 shares by volume this Thursday

Paladin Energy Ltd (ASX: PDN)

Paladin Energy is first up today. This ASX 200 uranium share has had a hefty 31.7 million of its shares change hands as it currently stands. Paladin is under pressure today after the release of its quarterly report for the three months ending 31 March.

As my Fool colleague Bernd covered, Paladin reported that its Langer Heinrich Mine remains in limbo. This seems to have spooked investors, who have sent the Paladin share price down by more than 5% today. These two events have likely resulted in the high trading volumes we are witnessing.

AVZ Minerals Ltd (ASX: AVZ)

ASX 200 lithium stock AVZ Minerals is our next cab off the rank today. AVZ has watched a notable 35.37 million of its shares trade on the markets thus far. This follows the release of the company’s own quarterly activities report this morning.

Investors mustn’t have liked what they saw, seeing as the AVZ share price is currently down by a nasty 4.46% at 96 cents a share, bucking the positive trend we see across some other ASX lithium stocks. It’s this sharp move downward that is probably behind this elevated trading volume we see. 

AMP Ltd (ASX: AMP)

Financial services provider and former ASX 200 blue-chip AMP is our final and most traded share of the day thus far. At the time of writing, a whopping 45.09 million AMP shares have been bought and sold so far today. We don’t have to look too far for this one.

As we covered this morning, AMP has just reported that it has found a buyer for its Collimate Captial international infrastructure equity business in DigitalBridge. AMP is set to receive $699 million for this asset. Investors clearly approve, seeing as the AMP share price is currently up an impressive 14.63% so far today at $1.148 a share. No wonder so many AMP shares have found a new home today. 

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

More reading

• Why AMP, Fortescue, Pilbara Minerals, and Sandfire shares are racing higher
• Why is the Woolworths share price missing out on the ASX party today?
• AMP share price surges 11% as $699m Collimate deal confirmed
• ASX 200 midday update: Coles, Fortescue, and Pilbara Minerals release quarterly updates
• Paladin Energy share price dips as investors await restart of uranium mine

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 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 Kogan.com Ltd (ASX: KGN) share price is in the red on Thursday amid a probe into online retail marketplaces.

The Australian Competition and Consumer Commission (ACCC) has highlighted concerns about competition and privacy across Australia’s major marketplace platforms.

The competition watchdog’s review focused on Australia’s 4 largest online marketplaces: Kogan, Amazon Australia, Catch, and Ebay Australia.

In light of its findings, the ACCC is considering introducing more regulatory framework regarding digital platform services.

At the time of writing, the Kogan share price is $4.53, 2.58% lower than its previous close.

For context, both the All Ordinaries Index (ASX: XAO) and the S&P/ASX 200 Index (ASX: XJO) are in the green. Right now, they’ve gained 1.12% and 1.16% respectively.

Let’s take a closer look at what has concerned ACCC.

Kogan slumps as ACCC ponders new regulation

The Kogan share price is slumping amid concerns of marketplaces’ use of algorithms, consumer data, and dispute processes.

After concluding its probe, the ACCC believes the industry needs more consumer protections. Particularly, surrounding platforms’ control and involvement with transactions.

“Online marketplaces have an important role in connecting Australian consumers and sellers, and make up a growing share of consumer sales,” said ACCC chair Gina Cass-Gottlieb. “But we are concerned about their impact on both consumers and third-party sellers who rely on online marketplaces to reach their customers.”

The watchdog is also concerned over the use of ranking algorithms, which impact consumers’ purchasing decisions.

How much data platforms collect from consumers, as well as what that data is used for, also sparked worries.

Finally, a continued lack of dispute resolution processes has pushed the regulator to once again recommend the establishment of an ombudsman scheme to resolve complaints.

Following the probe, the ACCC is calling for platforms to offer consumers and sellers more information and control over how ranking algorithms work and what marketplaces are doing with their data.

The competition watchdog is also considering if Australia would benefit from new regulatory framework addressing competition and consumer concerns with digital platform services more broadly.

“Any such framework should be able to be applied to an online marketplace if it reaches a position where it could exercise a certain level of market power or, potentially, act as a gatekeeper between businesses and consumers,” said Cass-Gottlieb.

Kogan share price snapshot

This year has been rough on the Kogan share price.

It has tumbled 49% since the start of 2022. It is also nearly 58% lower than it was this time last year.

The post Kogan share price dips amid ACCC online marketplace probe appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares to consider amid the share market sell-off
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• Why is the Kogan share price slipping to a 4-week low on Tuesday?
• These are the 10 most shorted ASX shares

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 positions in and has recommended Amazon and Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended eBay and has recommended the following options: short April 2022 $62.50 calls on eBay. The Motley Fool Australia has positions in and has recommended Kogan.com ltd and Wesfarmers Limited. The Motley Fool Australia has recommended Amazon. 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 Nickel Mines Ltd (ASX: NIC) share price is leaping today following the release of the company’s quarterly results. The ASX nickel producer’s share price is currently $1.22, a 5.8% gain. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 1.17% today.

Let’s take a look at the news Nickel Mines has for ASX investors today.

Nickel Mines share price jumps on quarterly results

Highlights included:

• Record US$81.7 million EBITDA from operations, up 18.7% on the December quarter
• 11,166 tonnes of 100% nickel produced, up 10.7%
• Record Rotary Kiln Electric Furnace (RKEF) EBITDA of US$72.8 million, up 19.7%
• US$7,386 per tonne of nickel sold, a 22.5% increase on the US$6,028 per tonne sold in the December quarter
• Sales revenue increased 4.4% to $195.4 million
• Underlying cash generation from operations of US$81.3 million, up 19.9%
• Hengjaya Mine production down 4.3% to 1,073,525 wet metric tonne (wmt)
• Final dividend of $0.02 per share declared.

What else happened during the quarter?

Underpinning this result were record sales from the Hengjaya and Ranger Nickel projects in Indonesia. A total of 10,089 tonnes of nickel was sold from these projects alone.

Nickel Mines is also exploring the Angel Nickel project, where sales are expected to start in the June quarter.

The revenue increase was driven by an US$823 per tonne jump in the realised price of nickel. Higher nickel prices were due to rising nickel ore costs and strong demand from the global stainless steel market. The Russia-Ukraine conflict and a global nickel short squeeze created supply issues.

The company signed its biggest ever Nickel pig iron (NPI) contracts in March and April from the Hengijaya Nickel and Ranger Nickel projects.

Operating cash costs at Hengjaya Nickel and Ranger Nickel fell during the third quarter. This was in stark contrast to the previous five quarters when prices increased.

Nickel Mines commissioned three Angel RKEF lines during the third quarter.

Nickel Mines also completed the take-up of a 10% interest in the Oracle Nickel Project.

Management comment

Commenting on the results, managing director Justin Werner said:

The March quarter was a milestone quarter for both the Company’s RKEF and mining operations with numerous production and financial records set.

With increasing production from both our RKEF and mining operations, underpinned by strong and stable operating margins, we are well positioned to deliver an exceptionally strong financial performance for our shareholders over the next 12 months.

What’s next?

Nickel Mines also advised the ASX today that the Australian Foreign Investment Review Board has no objection to Shanghai Decent owning up to 22% of Nickel Mines.

Nickel Mines predicts production and EBITDA will more than triple in the next twelve months.

The company described Indonesia, where the company’s flagship projects are located, as the “epicentre of new nickel supply”.

Nickel Mines share price snapshot

The Nickel Mines share price has leapt by 13% in the past 12 months. It has fallen 16% year to date. For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned about 4% over the past year.

Nickel Mines has a market capitalisation of about $3 billion based on the current share price.

The post Nickel Mines share price lifts following record quarter appeared first on The Motley Fool Australia.

More reading

• What’s happening to ASX nickel shares today?
• How has the Nickel Mines share price been performing since the big squeeze?
• All that glitters isn’t gold: Here are the worst performing ASX mining shares of the quarter
• These 3 ASX 200 shares are topping the volume charts on Wednesday
• These were the worst performing ASX 200 shares in March

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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Looking for dividends shares for you income portfolio? If you are, you may want to check out the two listed below.

Here’s what you need to know about these ASX dividend shares:

Baby Bunting Group Ltd (ASX: BBN)

The first ASX dividend share that could be in the buy zone is Baby Bunting. It is the leading baby products retailer with a strong (and growing) presence through its national superstores and online business.

Citi is a fan of the company and has a buy rating and $6.22 price target on its shares. The broker highlights that the retailer has a strong position in a less discretionary category. It expects this to support strong growth in the coming years.

Citi explained: “We see Baby Bunting well placed to outperform the broader small cap retail sector this year given the non-discretionary nature of its category. While the FY22 PE multiple of 24x (or 29x when adjusted for transformation costs) is not cheap, we forecast a FY21 to FY24 EPS CAGR of 17%.”

In respect to dividends, Citi has pencilled in fully franked dividends per share of 16 cents in FY 2022 and 19 cents in FY 2023. Based on the current Baby Bunting share price of $4.59, this will mean yields of 3.5% and 4.1%, respectively.

Harvey Norman Holdings Limited (ASX: HVN)

Another ASX dividend share that could be in the buy zone is Harvey Norman. It is of course one of Australia’s largest retailers with stores across the country and internationally.

The team at Goldman Sachs is very positive on the retail giant and has a buy rating and $5.80 price target on its shares.

Goldman highlights that Harvey Norman “has a greater preference within the boomer generation and a higher exposure to regional Australia.” The broker believes this shields it from online disruption.

As for dividends, the broker is forecasting fully franked dividends of 43.3 cents per share in FY 2022 and 39.6 cents per share in FY 2023. Based on the current Harvey Norman share price of $5.04, this will mean yields of 8.6% and 7.9%, respectively.

The post Here are 2 top ASX dividend shares analysts are tipping as buys appeared first on The Motley Fool Australia.

More reading

• Here are the ASX retail share winners and losers of the last quarter
• Brokers name 2 ASX dividend shares to buy
• Buy these ASX shares with huge upside: experts
• Brokers name 2 ASX 200 dividend shares to buy now
• 2 ASX dividend shares analysts have named as buys

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 Harvey Norman Holdings Ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia has recommended Baby Bunting. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is back on form and on course to record a strong gain. At the time of writing, the benchmark index is up 1.1% to 7,342.2 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling lower:

Cettire Ltd (ASX: CTT)

The Cettire share price is down 7% to 68.5 cents. Investors have been selling this online luxury goods retailer’s shares following the release of its quarterly update. Although Cettire reported strong growth in its gross revenue, there were a few metrics that appear to have spooked investors. For example, conversion rates and average order size both fell year on year and compared to the average during the first two quarters of FY 2022.

Newcrest Mining Ltd (ASX: PLS)

The Newcrest share price is down 2% to $26.50. This follows the release of the gold miner’s quarterly update. That update revealed a 10% increase in gold production to 480,000 ounces. And with an all-in sustaining cost (AISC) of $1,008 per ounce, Newcrest enjoyed an AISC margin of $809 per ounce. This appears to have been overshadowed by a pullback in the gold price overnight.

Silver Lake Resources Limited (ASX: SLR)

The Silver Lake share price has slumped 6% to $1.88. This morning the gold miner released its quarterly update and reported production of 53,822 ounces of gold. While this left it positioned to meet its FY 2022 production guidance, management warned that COVID-19 related labour shortages could disrupt its operations. As a result, it is withdrawing its guidance.

Whispir Ltd (ASX: WSP)

The Whispir share price has sunk over 15% to $1.24. Yesterday this communications workflow platform provider avoided the tech selloff after investors responded positively to the release of its quarterly update. That positivity has faded very quickly, with a broker note out of Wilsons potentially to blame. This morning its analysts slashed their price target by 22% to $3.05. Though, this is still meaningfully higher than current levels.

The post Why Cettire, Newcrest, Silver Lake, and Whispir shares are tumbling lower appeared first on The Motley Fool Australia.

More reading

• Why AMP, Fortescue, Pilbara Minerals, and Sandfire shares are racing higher
• ASX 200 midday update: Coles, Fortescue, and Pilbara Minerals release quarterly updates
• Pilbara Minerals share price climbs as lithium prices surge
• Cettire share price surges higher as revenue rockets 178%
• Here are the 3 most heavily traded ASX 200 shares on Wednesday

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 Cettire Limited and Whispir Ltd. The Motley Fool Australia has recommended Cettire Limited and Whispir 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 Woodside Petroleum Limited (ASX: WPL) share price is currently down 0.2% to $30.89. Today, it has been as high as $31.59 and as low as $30.67. That’s a swing of almost 3% in just five hours of trading.

Other oil and gas producers, like Santos Ltd (ASX: STO) and Beach Energy Ltd (ASX: BPT), have seen a similar pattern with their share prices – they were higher earlier today and then those gains faded.

During this week, Woodside released its quarterly update for the three months to 31 March 2022.

First-quarter update

Woodside said that its delivered production was 22.3 million barrels of oil equivalent (MMboe) for the quarter. This was down 1% from the fourth quarter of 2021.

Its sales volume was 25.5 MMboe, which included a 2% increase in the produced LNG sales volume from the 2021 fourth quarter.

The average realised price increased to $93 per barrel of oil equivalent. This was an increase of 3% from the 2021 fourth quarter.

While the price per barrel increased, the sales revenue of $2.36 billion was down 17% from the fourth quarter of 2021 due to lower trading activity.

Highlights included the commencement of processing Pluto gas at the Karratha Gas Plant. This followed the start-up of the Pluto-KGP interconnector pipeline.

Outlook for Woodside and its share price

Woodside said that it’s expecting to see the continued benefits of stronger pricing in the second quarter, reflecting the oil price lag in many of its LNG contracts.

The ASX oil share pointed to the implications of Russia’s invasion of Ukraine which exacerbated the energy markets, which were already “tight”, particularly for LNG. It has driven prices higher.

Woodside continues to make progress toward the merger with the BHP Group Ltd (ASX: BHP) petroleum business. Why are they merging? Woodside CEO Meg O’Neill explains:

We believe the case for the proposed merger with BHP Petroleum is compelling. It will bring together the best of two successful organisations and deliver the increased scale, diversity and resilience to provide value to shareholders and ensure Woodside better navigates the energy transition.

The company points to progress with a number of its other projects. This includes Scarborough where the manufacture of the pipeline has started. It has signed binding agreements for the long-term charter of three new-build LNG carriers to be delivered before the start-up of Scarborough. These new vessels “will improve the cost-competitiveness and fuel efficiency of the Woodside fleet”.

Is the Woodside share price an opportunity?

The broker Morgans thinks that Woodside is a buy, with a price target of $33.60. That implies a potential rise of around 10% over the next year.

However, UBS is only neutral with a price target of $32.20, suggesting a smaller potential rise for the Woodside share price. UBS has decreased its production expectations for the next couple of years.

The post Why is the Woodside share price in the spotlight on Thursday? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• How might the election outcome impact the outlook for ASX energy shares?
• Here’s why the Woodside share price is beating the ASX 200 today
• Own the Vanguard Australian Shares High Yield ETF? Here’s what you’re invested in
• Own ASX 200 energy shares? Here’s why Morgan Stanley says the oil price is set to surge

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 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 Xero Limited (ASX: XRO) share price has dropped 35% since the start of 2022. The ASX tech share is seen as an opportunity, according to some experts.

It has been a volatile period for the ASX share market. There is elevated inflation around the world, which is why expectations for rising interest rates are increasing.

That may explain some of the market sentiment on the Xero share price in recent times. But after the decline, some experts believe that the cloud accounting business is worth buying.

Here are some of the factors that are favourable about the company.

High-profit margin with growing SaaS metrics

It is possible for technology companies to achieve relatively high-profit margins because of the intangible nature of what they offer customers. Software can be reproduced easily and cheaply. Furniture, phones, or other physical goods have to be manufactured and shipped.

Xero reported in its FY22 half-year result that its gross profit margin improved by another 1.4% to 87.1%. This means that a large majority of new income for Xero can turn into gross profit. Xero is utilising this money to invest in further growth.

The company said it’s seeing “strength” with a number of its software as a service (SaaS) metrics. Over HY22, its average revenue per user (ARPU) increased by 5% to NZ$31.32.

Xero also said that its subscriber ‘churn’ was low and went lower. HY22 churn was 0.88%, down from 1.11% in HY21.

Global growth for Xero

The ASX tech share started operations in New Zealand but it is now a global accounting software business.

In Australia and New Zealand, it reached 1.72 million subscribers – that was an increase of 20% year on year, with 22% growth in Australia to 1.24 million. Xero said this points to the “positive potential of international segment.”

The business is growing quickly outside of Australia/New Zealand.

In the UK, it grew subscribers by 23% to 785,000 in HY22. It’s looking to grow by expanding its compliance and tax offerings. In North America, subscribers rose 23% to 308,000. Xero is looking to grow in both the US and Canada.

Xero is also aiming to gain a significant presence in the ‘rest of the world’ segment. HY22 saw subscribers grow by 48% to 201,000. The ASX tech share is making “strong progress” in South Africa and Singapore.

Platform business model

Xero wants to build its small business platform. Indeed, CEO Steve Vamos said:

We are committed to delivering the world’s most insightful and trusted small business platform to make life better for people in small business, their advisors and communities around the world.

The company is seeing growth in the number of Planday users and employees being paid through Xero payroll. The total payment value is also increasing on Xero’s platform.

Xero is directing the cash flow it generates to grow its platform to “drive long-term shareholder value”.

The percentage of revenue that comes from its platform, rather than core accounting, is growing. In HY22, platform revenue was 11% of the total revenue, up from 6%. Platform revenue increased 104% year on year, or 37% excluding revenue from acquired businesses.

Xero share price targets

Ord Minnett rates Xero as a buy, with a price target of $107. The broker thinks Xero can benefit from global tailwinds toward cloud software. Citi also rates Xero shares as a buy, with a price target of $132.60.

At the time of writing, Xero shares are swapping hands for $93.68, down 0.92% for the day. The Xero share price has dived 36% year to date and 32% over the past 12 months. Its 52-week high is $156.65.

The post Why the Xero share price is a buy right now: experts appeared first on The Motley Fool Australia.

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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 positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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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