The green division of Fortescue Metals Group Limited (ASX: FMG), called Fortescue Future Industries (FFI), may soon be launching a new green initiative.

Fortescue’s founder and Chair Andrew Forrest is scheduled to speak at the Queensland Media Club in Brisbane later today. According to reporting by The Australian, it is possible that a new investment in renewable energy in Queensland may be announced.

What is Fortescue Future Industries?

Fortescue says that FFI is taking a global leadership position in green energy and green technology, leading the effort to decarbonise hard-to-abate sectors.

FFI is investing to create a global portfolio of green energy projects to supply 15 million tonnes per year of renewable green hydrogen by 2030.

The green division is working on a number of initiatives to help Fortescue decarbonise as well as helping the world decarbonise in various other ways.

For example, it has recently successfully completed the first phase of studies with Incitec Pivot Ltd (ASX: IPL) to convert the Gibson Island ammonia production facility to be powered by green hydrogen. The next phase is to progress the project to a front end engineering design study to refine cost, schedule, permitting and commercial agreements.

In terms of decarbonising its operations, it has recently progressed rail decarbonisation initiatives with the arrival of two additional ‘four stroke’ locomotives for testing on a blended ammonia fuel system, and in January 2022 announced the purchase of two battery electric locomotives for delivery in 2023.

In January 2022, Fortescue announced that it had entered into an agreement to acquire Williams Advanced Engineering (WAE). WAE will be vertically integrated into Fortescue and will be managed via FFI which will utilise WAE’s critical technology and expertise in high-performance battery systems and electrification to accelerate the decarbonisation of Fortescue’s iron ore operations.

How does Queensland factor into FFI’s plans?

Queensland was the location of the first announced Fortescue Future Industries global green energy manufacturing (GEM) centre in Gladstone, Queensland. The first stage of development is an electrolyser manufacturing facility with an initial capacity of two gigawatts per annum with an investment of up to US$83 million by FFI.

The GEM will be the first in a series of centres that will “transform regional Australia through the manufacture of equipment that is critical to the generation of renewable energy and green hydrogen”. Not only will there be electrolyser manufacturing, but also wind turbines, solar photovoltaic cells, long-range electric cabling, electrification systems and associated infrastructure.

Subject to customer demand, as orders firm for both electrolysers and the associated green industry, the investment could be up to US$650 million.

The Australian reported that the theme of the media lunch in Brisbane is “Queensland’s green energy future” which will be about ways to make the state a green energy powerhouse.

The post Could Fortescue (ASX:FMG) be about to announce its next major green initiative? appeared first on The Motley Fool Australia.

More reading

• The iron ore price outlook could be darkening amid China’s latest plans
• Why new iron projects could drive the Fortescue (ASX:FMG) share price higher
• Top brokers name 3 ASX shares to sell next week
• These were the worst performers on the ASX 200 last week
• Why Fortescue, Goodman, Inghams, and QBE shares are dropping

Motley Fool contributor Tristan Harrison owns Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

from The Motley Fool Australia https://ift.tt/MkqdQnp

On Thursday, the S&P/ASX 200 Index (ASX: XJO) was sold off after Russia invaded the Ukraine. The benchmark index fell 3% to 6,990.6 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to end the week with a small gain after US markets reversed their declines. According to the latest SPI futures, the ASX 200 is expected to open the day 12 points or 0.2% higher this morning. In late trade on Wall Street, the Dow Jones is down 0.65%, the S&P 500 is up 0.35%, and the Nasdaq is up 1.9%.

Medibank half year results

The Medibank Private Ltd (ASX: MPL) share price will be one to watch on Friday. This morning the private health insurer is scheduled to release its half year results. According to CommSec, the consensus estimate is for a net profit of $218 million. This will be down slightly from $226.4 million a year earlier. The market is also forecasting a 5.9 cents per share interim dividend.

Oil prices higher

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a decent day after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 0.9% to US$92.92 a barrel and the Brent crude oil price is up 2.4% to US$99.20 a barrel. The latter hit US$100 at one point for the first time since 2014 amid developments in Ukraine.

Gold price falls

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a subdued finish to the week after the gold price edged lower. According to CNBC, the spot gold price is down 0.75% to US$1,896.30 an ounce. Gold was up as much as 3% at one stage before paring its gains.

Flight Centre given neutral rating

The Flight Centre Travel Group Ltd (ASX: FLT) share price doesn’t offer enough value for money according to the team at Goldman Sachs. This morning the broker retained its neutral rating and cut its price target to $19.50. Goldman notes that Flight Centre’s cash burn was higher than expected and has concerns that emerging geopolitical risks could dampen the recovery profile.

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

More reading

• The oil price has just hit an 8-year high. What might this mean for ASX shares?
• Even the Woodside (ASX:WPL) share price isn’t immune to today’s sell-off. Here’s why
• ASX wipes out $73 billion as Russia invades Ukraine
• Here are the top 10 ASX shares today
• 5 ASX 200 shares tumbling to 52-week lows today

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

from The Motley Fool Australia https://ift.tt/6cCQXu7

Looking for some exchange traded funds (ETFs) to boost your portfolio? If you are, you might want to look at the ones below.

Here’s why they could be worth researching further:

BetaShares Crypto Innovators ETF (ASX: CRYP)

The first ETF to look at is the BetaShares Crypto Innovators ETF. It could be a good option for investors that are interested in investing in the cryptocurrency industry rather than coins.

BetaShares notes that the ETF is designed to capture the full breadth of the crypto ecosystem. This is achieved by providing exposure to pure-play crypto companies (including crypto exchanges, mining companies, and mining equipment providers), companies with balance sheets that hold at least 75% in crypto-assets, and diversified companies with crypto-focused business lines.

Among its holdings you’ll find Coinbase, PayPal, Riot Blockchain, Robinhood, Silvergate, and Afterpay-owner, Block. Given the nature of the industry, it is not likely to be one for the fainthearted.

VanEck Australian Resources ETF (ASX: MVR)

If you’re more interested in the traditional type of mining, then you may want to look at the VanEck Australian Resources ETF.

This ETF gives investors exposure to a diversified portfolio of ASX-listed shares with the aim of providing investment returns before fees and other costs of the MVIS Australia Resources Index.

This index is a pure-play rules-based Australian sector index that tracks the performance of the largest and most liquid ASX-listed companies that generate at least 50% of their revenues or assets from the Australian resources sector.

Among the ETF’s holdings are many of the most well-known miners on the Australian share market. This includes the likes of BHP Group Ltd (ASX: BHP), Newcrest Mining Ltd (ASX: NCM), Rio Tinto Limited (ASX: RIO), and Woodside Petroleum Limited (ASX: WPL).

The post 2 intriguing ETFs for ASX investors to watch appeared first on The Motley Fool Australia.

More reading

• 3 ETFs for ASX investors to watch in 2022
• 3 popular ETFs for ASX investors today
• Why is the BetaShares Crypto Innovators ETF (ASX:CRYP) leaping 5% today?
• 3 exciting ETFs for ASX investors next week

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. owns and has recommended Betashares Crypto Innovators ETF. 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.

from The Motley Fool Australia https://ift.tt/SgMjPO3

Are you interested in adding some ASX growth shares to your portfolio? If you are, you may want to look at the ones listed below.

Here’s what you need to know about these buy-rated growth shares:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX growth share to look at is Aristocrat Leisure. It is one of the world’s leading gaming technology companies. While the pandemic hit Aristocrat hard, it has bounced back very strongly and even appears to be winning market share from rivals.

Furthermore, its digital business continues to grow strongly and generate significant recurring revenues thanks to the ongoing popularity of its portfolio. And while the company has just missed out on a major real money gaming acquisition, management appears intent on increasing its exposure to this growing market and certainly has the balance sheet strength to do so.

Morgans is very positive on Aristocrat and has an add rating and $48.00 price target on its shares. Based on the current Aristocrat share price of $36.70, this implies potential upside of approximately 31% for investors.

Breville Group Ltd (ASX: BRG)

Another ASX growth share to look at is Breville. It is the leading appliance manufacturer behind the Sage, Kambrook, Baratza, and eponymous Breville brands.

Thanks to the popularity of these brands and management’s ongoing investment in R&D, Breville has been growing at a solid rate for years. This has continued in FY 2022, with the company delivering 23.6% increase in half year revenue to $878.7 million and a 25.1% lift in net profit after tax to $77.7 million.

Morgans is also a fan of Breville and has recently put an add rating and $32.00 price target on its shares. With the Breville share price currently fetching $27.18, this suggests potential upside of approximately 18% for investors over the next 12 months.

The post 2 top growth shares analysts rate as buys after the market meltdown appeared first on The Motley Fool Australia.

More reading

• Breville (ASX:BRG) share price pops after 25% profit surge
• 3 excellent ASX growth shares to buy before it’s too late
• 3 fantastic ASX 200 growth shares to buy
• Here are 3 excellent ASX growth shares for investors in February
• Could Aristocrat (ASX:ALL) still be eyeing a Playtech deal of sorts?

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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/EpkRjn9

The oil price has reached an 8-year high. What could this mean for ASX shares?

Oil prices have risen above US$100 and have hit a price that hasn’t been seen for almost a decade.

It has been a very volatile day for the ASX share market. The S&P/ASX 200 Index (ASX: XJO) fell by 3% today to 6,991 points.

What’s happening?

Russia has started a full-scale invasion of Ukraine, as reported by various media and Ukrainian officials.

Before today, geopolitical concerns had sent the oil price higher. It’s possible that there could be major economic sanctions against Russia, which was the second biggest oil producer in 2020 according to reporting by Forbes.

Sanctions on Russian oil could hurt the available global oil supply, when prices were already rising.

According to reporting by Forbes, Russia produced 10.1 million barrels of oil per day of crude oil and natural gas condensate in 2020.

How could the higher oil price affect ASX shares?

There are a few key oil producers on the ASX. Two of the biggest are Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL).

Another major ASX-listed oil producer is BHP Group Ltd (ASX: BHP), though it’s planning to divest its oil business to Woodside in the next few months.

However, there are a number of wider impacts that higher oil prices could have.

There are plenty of ASX shares where they use a lot of oil products in their main operations, or the supply chain does, like Qantas Airways Limited (ASX: QAN), Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL).

There are plenty of other ASX shares that use oil in some way.

In a bid to try to control oil prices, Australia is considering using its 1.7 million barrels of fuel reserves held in the United States as part of a joint effort with like-minded nations according to reporting by the Australian Financial Review.

The newspaper said that Energy Minister Angus Taylor said Australia was working with the US and the International Energy Agency “to monitor global energy markets, ensure ongoing supplies and plan for appropriate measures to ensure energy security.” Mr Taylor continued:

Australia is prepared to join other IEA member countries to contribute to a global collective action, if one is called, through using our oil stocks held in the United States’ Strategic Petroleum Reserve (SPR) and will continue to monitor global gas markets.

Inflation concerns

Inflation was already a big concern for ASX shares, economists and central bankers before this difficult situation, as well as the climbing oil price.

The Guardian quoted Melbourne-based Kyle Rodda from IG Markets that said that the increase in fuel prices could lead to further inflation, making central banks have to react strongly to inflation:

… the supply disruptions in commodity prices would drive costs higher, and exacerbate the inflation central banks are already struggling to contain.

That means despite, this the Fed – and others – would be unable to buffet the shock, and would potentially have to tighten policy – a very negative scenario for risk assets.

Rising interest rates can have a downward impact on asset prices like ASX shares.

Warren Buffett said at the 1994 Berkshire Hathaway annual general meeting:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature … its intrinsic valuation is 100% sensitive to interest rates.

The post The oil price has just hit an 8-year high. What might this mean for ASX shares? appeared first on The Motley Fool Australia.

More reading

• Even the Woodside (ASX:WPL) share price isn’t immune to today’s sell-off. Here’s why
• Why Russia was not the only thing that dragged the BHP (ASX:BHP) share price lower today
• ASX wipes out $73 billion as Russia invades Ukraine
• Here are the top 10 ASX shares today
• 5 ASX 200 shares tumbling to 52-week lows today

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 COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/ZS9QbOj

The Medical Developments International Ltd (ASX: MVP) share price will be on watch on Friday.

This follows the release of the healthcare company’s half year results after the market close.

Medical Developments International share price on watch after big loss

• Revenue down 23% to $9.865 million
• Net loss after tax widened from $1.1 million to $7.4 million
• Cash and cash equivalents of $28.3 million

What happened during the first half?

For the six months ended 31 December, Medical Developments International reported a 23% decline in revenue to $9.865 million. This decline was entirely due to $6.4 million in non-recurring contract income recorded during the prior corresponding period. This overshadowed a 55% increase in core sales, supported by a 131% jump in Australian Penthrox sales.

On the bottom line, Medical Developments International generated a net loss after tax of $7.4 million, compared to a loss of $1.1 million a year earlier. Though, after adjusting for non-operating items, the company’s loss was comparable to the prior period.

No dividend was declared for the half once again.

Management commentary

Medical Developments International’s Chair, Gordon Naylor, was pleased with the progress the company made during the half.

He said: “I continue to be pleased with the progress being made by Brent and his leadership team to reshape and focus MVP. It is especially encouraging to see early signs that the approach is working. Despite the pandemic challenges, Penthrox sales growth is strong in Europe, our primary growth corridor over the next few years. We’re also seeing solid underlying growth in Australian sales and our US respiratory franchise.”

“Our renewed focus has meant that we have taken formal decisions to cease further development of continuous flow processes for third parties and to exit the Veterinary segment, allowing our skilled resources to be applied to the core pain segment.”

“In another positive development, our next generation Penthrox delivery device (‘Selfie’) has reached the milestone of formal project approval. Our aim is for Selfie to propel further future business growth. I thank Brent and the MVP team who have been through a challenging time. The challenges aren’t over, but I am confident that the company is heading in the right direction,” Mr Naylor added.

No guidance has been provided for the remainder of FY 2022.

The post Medical Developments International (ASX:MVP) share price on watch as losses widen appeared first on The Motley Fool Australia.

More reading

• Australian Clinical Labs (ASX:ACL) share price falls despite tripling profits and beating guidance
• Even the Woodside (ASX:WPL) share price isn’t immune to today’s sell-off. Here’s why
• Telco blip: Telstra (ASX:TLS) share price slips on TPG deal scrutiny
• Qube (ASX:QUB) share price rises on ‘strong result’
• Why Russia was not the only thing that dragged the BHP (ASX:BHP) share price lower today

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. owns and has recommended Medical Developments International Limited. The Motley Fool Australia has recommended Medical Developments International Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/7hU18si

The Australian Clinical Labs Ltd (ASX: ACL) share price dropped with the market on Thursday despite the release of a strong half year update from the pathology company.

The company’s shares ended the day 3.5% lower at $4.85.

Australian Clinical Labs share price lower despite strong growth

• Total revenue up 61.2% to $538 million
• EBITDA up 112.1% to $239.3 million
• Net profit after tax up 200% to $130.3 million
• Fully franked interim dividend of 12 cents per share

What happened during the first half?

For the six months ended 31 December, Australian Clinical Labs delivered a 61.2% increase in revenue to $538 million. This strong growth was driven by significant demand for COVID testing and a rapid and substantial increase in capacity to capture it.

This was also supported by modest growth from its non-COVID operations, which reported a 2.8% increase in revenue over the prior corresponding period.

Thanks to significant operating leverage, the company’s EBIT margin increased from 20.5% to 35.5%, which ultimately underpinned a net profit after tax of $130.3 million. This was triple what it achieved a year earlier and ahead of its upgraded guidance of $116.3 million to $128 million. It was also 4% ahead of consensus estimates.

Management commentary

Australian Clinical Labs’ Chief Executive Officer and Executive Director, Melinda McGrath, was pleased with the company’s performance in a challenging operating environment..

She said: “During the past two years, Clinical Labs has played an essential role in Australia’s response to COVID during what was at times a challenging operating environment. At the same time the team have delivered growth in our core business, driven operational improvements across the organisation while simultaneously completing two acquisitions. These achievements are a testament to the commitment and resilience of the ACL team.”

“The strong result achieved in 1H FY22 demonstrates the value of the significant prior investment in the business which resulted in further operating leverage, efficiencies, improved productivity and increased automation and digitisation. There exist several opportunities to continue to grow the business including via our commercial offering and our established clinical trials business. We have strong foundations in technology and systems and a highly experienced performance-driven management team to execute our well-defined growth strategy.”

Outlook

Due to high levels of uncertainty, no guidance has been given for the remainder of FY 2022.

However, management has provided an idea on what it expects to occur in respect to testing volumes during the second half.

It explained: “During the 2H FY22, ACL anticipates testing for COVID to continue to moderate as the response to COVID transitions to an endemic virus. The pace with which COVID testing moderates will depend on several factors including future outbreaks, new variants, vaccination take up and effectiveness and government policy relating to lockdowns and travel.”

“Assuming no significant outbreaks, ACL anticipates the rebound in non-COVID testing to continue as restrictions on essential surgeries ease and hospitals return to full capacity,” it concluded.

The post Australian Clinical Labs (ASX:ACL) share price falls despite tripling profits and beating guidance appeared first on The Motley Fool Australia.

More reading

• Even the Woodside (ASX:WPL) share price isn’t immune to today’s sell-off. Here’s why
• Telco blip: Telstra (ASX:TLS) share price slips on TPG deal scrutiny
• Qube (ASX:QUB) share price rises on ‘strong result’
• Why Russia was not the only thing that dragged the BHP (ASX:BHP) share price lower today
• Hipages (ASX:HPG) share price plunges 6% on half-year loss

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 Australian Clinical Labs Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/Mr0PZLS

The Woodside Petroleum Limited (ASX: WPL) share price fell close to 3% today.

It has been a volatile day for the ASX share market. The S&P/ASX 200 Index (ASX: XJO) dropped by around 3%.

What’s going on in Ukraine?

Russia has finally launched a full invasion of Ukraine. International media is reporting that Ukraine is being invaded from multiple locations by Russia, as well as intense shelling and missile strikes.

On Twitter, the Ukraine foreign minister Dmytro Kuleba has called on the world to take a number of actions to deal with Russia and help Ukraine.

He called for:

Devastating sanctions on Russia NOW, including SWIFT

Fully isolate Russia by all means, in all formats

Weapons, equipment for Ukraine

Financial assistance

Humanitarian assistance

The invasion of Ukraine and possible response by the global community is seen as a key reason why the oil price has risen above US$100 per barrel.

Russia is one of the main oil producers in the world. According to reporting by Forbes, Russia produced 10.1 million barrels of oil per day of crude oil and natural gas condensate. That put it in second place behind the US at 11.3 million barrels per day. Saudi Arabia was third at 9.3 million barrels of oil per day.

Sanctions on Russian oil could hurt the available oil supply, when prices are already rising.

Woodside is one of Australia’s biggest oil producers. So why was the Woodside share price sold down?

There are some days when nearly every ASX share drops, with indiscriminate selling. The worst of the COVID sell-off in 2020 saw some days like that. But there might be another culprit.

Ex-dividend date

An ex-dividend date is the date that new investors are no longer entitled to a dividend that has been declared. Prior to that date, new investors would be entitled to the dividend. All things being equal, it is not uncommon for a share price to fall by a similar amount to the dividend declared dividend after going ex-dividend.

Woodside’s ex-dividend date was today. It had declared a final dividend of US$1.05 per share, bringing the full-year dividend to US$1.35 per share. That dividend was based on underlying NPAT of US$1.62 billion.

If it hadn’t been Woodside’s ex-dividend date, it may have been possible that the Woodside share price could have risen today.

The post Even the Woodside (ASX:WPL) share price isn’t immune to today’s sell-off. Here’s why appeared first on The Motley Fool Australia.

More reading

• ASX wipes out $73 billion as Russia invades Ukraine
• Here are the top 10 ASX shares today
• 5 ASX 200 shares tumbling to 52-week lows today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Expert names 3 commodities set to boom from a Russian invasion

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.

from The Motley Fool Australia https://ift.tt/AsILlJy

The Telstra Corporation Ltd (ASX: TLS) deal with competitor TPG Telecom Ltd (ASX: TPG) could face scrutiny from the Australian Competition and Consumer Commission (ACCC).

The Telstra share price fell 1.74% today, while the TPG share price slid 2.73%. However, the  S&P/ASX 200 Index (ASX: XJO)  took a greater hit, dropping by 2.99%.

Let’s take a look at what is happening at Telstra and TPG.

Telstra and TPG deal may hit a barrier

Rod Sims, the outgoing boss of the ACCC, has revealed the competition authority will be “looking very closely” at a new deal between telco giants Telstra and TPG.

Telstra and TPG have signed a ten-year regional multi-operator core network commercial agreement, as my Foolish colleague James reported on Monday.

As part of the deal, Telstra will gain access to TPG’s spectrum on the 4G and 5G network, while TPG will benefit from access to 3,700 of Telstra’s mobile network assets.

However, this agreement, which TPG described as a “game-changer” in its financial results today, requires ACCC approval.

And the ACCC’s Sims told the Sydney Morning Herald (SMH) his team had yet to look at the deal in detail but was concerned it could impact mobile price plans. Mr Sims, who has been one of the most vocal critics of the 2020 merger between TPG and Vodafone, said:

Post merger — despite what the parties say — it is a fact that post merger prices have gone up. Prepaid and postpaid prices have gone up, so that is as a side effect. I think our concerns with TPG Vodafone merger were justified, and so we’ll be looking very closely at this.

Telstra was one of the most heavily traded ASX 200 shares on the ASX on Thursday, as my Foolish colleague Sebastian reported. More than 37 million shares in the telco have swapped hands in one day.

Meanwhile, TPG’s share price fell nearly 7% in early morning trade after the company released its full-year results. TPG shares have since recovered.

TPG, Telstra share price snapshots

The Telstra share price has soared by about 26% in the past year, while it is plunging 5.5% year to date.

Meanwhile, the TPG share price has fallen 19% in the last 12 months, while it is down 3% year to date.

For perspective, the benchmark ASX 200 has returned about 3% over the past year.

Telstra has a market capitalisation of about $46 billion, while TPG has a market cap of roughly $10.6 billion.

The post Telco blip: Telstra (ASX:TLS) share price slips on TPG deal scrutiny appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Profit plunge: TPG Telecom (ASX:TPG) share price slides 7% on full-year results
• Top brokers name 3 ASX shares to buy today
• These 3 ASX 200 shares are topping the volume charts this Wednesday
• What’s the outlook for the Telstra (ASX:TLS) dividend?

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 Telstra Corporation Limited. The Motley Fool Australia has recommended TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/Mj92LJH

The Qube Holdings Ltd (ASX: QUB) share price edged slightly higher today following the release of the company’s half-year financial results.

While the Qube share price closed at an increase of just 0.36% at $2.82, shares were trading at a high volume today.

To compare, the S&P/ASX 200 Industrials Index (ASX: XNJ) dropped 2.19%, and the broader All Ordinaries Index (ASX: XAO) closed down 2.95%.

Let’s dive in…

Qube share price up on rise in revenue

The Qube share price made gains today after the logistics provider reported the following highlights for the half-year (ending 31 December 2021):

• Revenue up 26.7% on the prior corresponding period (pcp) to $1.19 billion
• Earnings before interest, taxes and amortisation (EBITA) up 0.7% to $95.1 million
• Net profit after tax (NPAT) down 2.6% to $56.3 million
• Net profit after tax plus amortisation (NPATA) down 2.3% to $64.8 million
• Earnings per share (EPS) down 2.9% to $3.4 million
• Fully franked dividend of 3 cents per share.

These statutory earnings also account for discontinued operations — including its Moorebank Logistics Park (MLP) in South Western Sydney that was monetised in the middle of December. Qube said this monetisation of the site would realise “substantial value for shareholders”.

Excluding discontinued operations, EBITA was $112.3 million.

Qube aims for continued growth

Looking at its underlying earnings (NPATA), Qube experienced a record 16.9% increase against the prior corresponding period. Underlying EBITA also rose 18.9% while underlying EPS was up 15.9%.

Despite facing COVID-19 challenges, the company attributed its earnings to “continued organic growth” and “acquisitions and growth capex (capital expenditure) completed in the prior and current periods”.

Looking more closely at its operations, the company saw particular earnings growth at Patrick — “Australia’s leading container terminal operator”. This came “despite scheduling issues and industrial disputes”.

Moving forward, Qube aims to see these earnings and EPS growth continue, should the climate of the wider market and COVID-19 challenges remain favourable.

As such, the company said its “strong balance sheet” would assist its “capital management initiatives of $400 million”. These are aimed to start in the second half of the financial year.

Finally, the company revealed a 20% boost to its dividend, to 3 cents per share (fully franked). It will be paid to investors on 8 April.

What did management say?

Commenting on the results that helped edge the Qube share price into the green, managing director Paul Digney said:

This is a very strong result in the face of COVID uncertainty and the global supply chain disruptions. It demonstrates once again the robust and resilient nature of Qube’s diversification strategy.

For more than a decade we have been building Qube to ensure diversification by asset, location and customer nationwide.

Qube is well placed to manage any emerging inflationary pressures including through contractual protections, ongoing productivity initiatives to increase efficiency and reduce costs, and pro-active engagement with customers to review their roaster logistics supply chain requirements.

Qube share price snapshot

Over the last 12 months, the Qube share price has dropped by nearly 9%. During that year, its shares saw a 52-week high price of $3.46 in September, following the company’s announcement to acquire Newcastle Agri Terminal (NAT).

The Qube share price hit a 52-week low of $2.72 earlier this week.

The company has a market capitalisation of $5.39 billion.

The post Qube (ASX:QUB) share price rises on ‘strong result’ appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday

Motley Fool contributor Alice de Bruin 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.

from The Motley Fool Australia https://ift.tt/sVUcvT1