The Qantas Airways Limited (ASX: QAN) share price is on watch today after CEO Alan Joyce warned that employees could be stood down if lockdowns are extended.

In morning trading, the Qantas share price was up 1.55% to $4.60 and the S&P/ASX 200 Index (ASX: XJO) was up 0.84%.

The Australian is reporting that Joyce sent a company-wide email warning stand downs remain a real possibility if the Sydney and Melbourne COVID lockdowns drag on for longer than anticipated.

Let’s take a closer look.

Qantas facing strong headwinds

Motley Fool Australia has previously reported on the devastating effects that lockdowns and border restrictions have had on the Qantas share price.

When the New South Wales Government extended the Sydney lockdown beyond the initial 2 weeks, travel shares fell while the market as a whole was up.

Similarly, when Victoria went into lockdown travel shares fell on the news.

In today’s report, Joyce warns that while the company is holding up well for now, an extension of lockdowns would be a financial disaster.

Joyce is quoted as saying:

“We’re not at the point of requiring stand-downs in our domestic operations at this stage. But to be honest, we can’t rule it out if multiple states keep their borders closed for extended periods.”

The CEO, however, was positive in his email to staff.

“…unlike last winter there’s now a Covid vaccine rolling out.

That means this cycle of restrictions and lockdowns will break. In other words, there is an end point to all of this and it’s not far away.”

Unlike last winter, however, Qantas will not receive any JobKeeper payments from the federal government. The program ended in March this year and Prime Minister Scott Morrison has repeatedly refused to bring it back.

Qantas share price snapshot

Over the past 12 months, the Qantas share price has increased 25.34%.

On the first trading day in 2020, before the coronavirus hit, Qantas shares were selling for $7.19.

The current 52-week high for the company is $5.79.

Therefore, on its best day over the past year, the Qantas share price is still 19.47% below where it was pre-pandemic.

Qantas has a market capitalisation of about $8.5 billion.

The post Qantas (ASX:QAN) share price on watch as CEO warns lockdowns could cost jobs appeared first on The Motley Fool Australia.

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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 PayGroup Ltd (ASX: PYG) share price is on fire today. At the time of writing, PayGroup shares are up a very healthy 8.16% to 53 cents a share. That comes after this payments company closed at 49 cents a share yesterday, and opened at 52 cents this morning.

The S&P/ASX 200 Index (ASX: XJO) is also having a pretty decent day today, up 0.7% so far today to 7,360 points. But PayGroup is certainly delivering some very impressive outperformance today. So why is this company hitting its stride so enthusiastically?

Well, it’s almost certainly due to the market update the company released to investors this morning.

This was a quarterly business update, as well as revised guidance for the 2022 financial year (FY2022). Let’s dive in.

Quarterly results, guidance update

So PayGroup reported that the quarter ending 30 June 2021 saw PayGroup record $4.6 million in new contracts, a 53% increase over the prior corresponding period. 28% of these new contracts came from PayGroup’s Global Partner Program, which is a “significant increase” on previous quarters”. Additionally, the company saw a 12% increase in annualised payslips from 6 million at the start of the quarter to 6.7 million by the end.

PayGroup also reported that as of 30 June, the company’s cash balance stood at $12.5 million, with no debts. According to PayGroup, this makes the company “well positioned to capitalise on growth initiatives”.

But let’s talk about PayGroup’s FY2022 guidance. So PyaGroup expects to receive between $35 million and $37 million in annualised recurring revenue (ARR) for FY2022. This is an increase of 29-36% from the company’s ARR of $27.2 million that it recorded at the conclusion of FY21.

Here’s some of what Mark Samlal, founder and managing director of PayGroup, had to say in today’s announcement:

FY22 will be a significant year for PayGroup. The guidance we announce today highlights the exciting
growth profile of the business and our ability to consistently execute on our proven strategy. With the
platform now in place and our technology roadmap underway, we are focused on extracting the significant
embedded value across the Group in the interest of long-term shareholder value creation.

About the PayGroup share price

Although PayGroup shares are up more than 8% today, PayGroup is still down around 14.5% year to date in 2021 so far, and down more than 29% over the past 12 months. It also remains down 30.3% since its IPO back in 2018.

At the current share price, PayGroup has a market capitalisation of $56.35 million.

The post Why the PayGroup (ASX:PYG) share price is up 8% on Thursday appeared first on The Motley Fool Australia.

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• Here’s why the Damstra (ASX:DTC) share price is gaining 13% today
• Kogan (ASX:KGN) share price falls as ACCC launches inquiry
• Newcrest (ASX:NCM) share price slides on quarterly update

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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Damstra Holdings Ltd (ASX: DTC) shares are soaring after the company released its latest quarterly activity report and results. Right now, the Damstra share price is trading at 90 cents – 13.21% higher than yesterday’s closing price.

In its results, the software-as-a-service provider noted record cash receipts and a record earnings before interest, tax, depreciation, and amortisation (EBITDA) margin.

Let’s take a closer look at the company’s latest results.

The quarter that’s been

Investors are driving the Damstra share price higher after the company reported cash receipts totalling $10 million and $9.1 million in revenue over the quarter ended 30 June 2021. Both figures are record-breaking for Damstra.

The company’s annual recurring revenue reached $35 million over the quarter – 65% more than the prior corresponding quarter.

Damstra’s EBITDA margin for the quarter was 30%, another record figure.

The period also saw Damstra gain a new $20 million debt facility, 55 new clients, and 74% more active users.

The company is seeing strong uptake of its highest priced product, Damstra Digital Forms. It’s also trialling its satellite offering, which allows remote workers communication coverage.

Additionally, Damstra has partnered with Amazon Web Services and its global mining team. The partnership helped it to build Damstra’s Enterprise Protection Platform.

Finally, the company signed a multi-year contract extension with NBN Co Limited. Damstra expects the deal will bring in around $7 million.

Commentary from management

CEO Christian Damstra commented on the news driving the company’s share price today, saying:

In [the fourth quarter] we continued to see material increases in users across all of our product modules and delivered increased value to our customers through constant product innovation. We remain in productive contractual negotiations with several potentially material clients in the United Kingdom and North America… each with more than 10,000 users and look forward to providing updates on the outcomes of these negotiations during the next quarter…

Looking ahead, we are close to finalising a number of material commercial opportunities that are expected to underpin our accelerated growth, including some international contracts we expected to sign this quarter which we now hope to sign in [financial year 2022].

Damstra share price snapshot

The Damstra share price has been having a rough trot on the ASX lately.

Right now, it’s around 42% lower than it was at the start of 2021. It has also fallen by more than 49% over the past 12 months.

The company has a market capitalisation of around $144 million, with approximately 186 million shares outstanding.

The post Here’s why the Damstra (ASX:DTC) share price is gaining 13% today appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon and Damstra Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia owns shares of and has recommended Damstra Holdings Ltd. 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 Kogan.com Ltd (ASX: KGN) share price is lower today. The negative price movement comes as the Australian Competition and Consumer Commission (ACCC) examines the practices of online marketplaces such as Kogan.

At the time of writing, shares in the online retailer are trading for $11.42 – down 1.17%. The S&P/ASX 200 Index (ASX: XJO) is currently 0.87% higher.

Let’s take a closer look at today’s news.

Kogan in ACCC crosshairs

The ACCC says it will look into the “pricing practices, the use of data, the terms and conditions imposed on third-party sellers,” of places like Kogan, as well as the Amazon.com, Inc (NASDAQ: AMZN) and eBay Inc (NASDAQ: EBAY) Australian branches.

It will also look into consumer-focused issues, such as the ability of consumers to leave reviews, the complaints handling process, and the usage and storage of data.

Investors may not be keen on the oversight Kogan is facing, and it reflects in the Kogan share price.

“These online marketplaces are an important and growing segment of the economy, so it is important that we understand how online marketplaces operate and whether they are working effectively for consumers and businesses,” ACCC Chair Rod Sims said.

“But we would expect the marketplace to operate fairly for businesses and consumers alike and comply with consumer laws and competition laws.”

In March 2019, Kogan launched ‘Kogan Marketplace’. It’s a platform for third-party sellers to list their goods on sale at Kogan. It had gross sales of $1.1 billion in 2021.

Online shopping saw a huge surge in demand as COVID forced people to stay home. Online purchases grew by 57% in 2020 year-on-year, and Australians spent a record $50.5 billion online in 2020. Non-food online sales accounted for 14.2 per cent of total non-food sales in May 2021, up from 10.9 per cent in February 2020.

Kogan has previously been in trouble with the ACCC. The government agency took Kogan to court, alleging it had mislead consumers about a discount promotion. The company was ordered to pay a fine of $350,000 for the affair.

Motley Fool Australia reached out to Kogan for comment, but none was received before publication.

Kogan share price snapshot

Over the past 12 months, the Kogan share price has fallen about 35%. That equates to a 55-point difference between the company and the ASX 200 – and not in Kogan’s favour.

Since the beginning of the year, however, the Kogan share price has increased by roughly 10%.

Kogan.com has a market capitalisation of $1.2 billion.

The post Kogan (ASX:KGN) share price falls as ACCC launches inquiry appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of 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: long January 2022 $1,920 calls on Amazon, short January 2022 $1,940 calls on Amazon, and short October 2021 $70 calls on eBay. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. 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 Newcrest Mining Ltd (ASX: NCM) share price is slipping in morning trade, down 1%.

Below we look at the ASX gold and mineral producer’s quarterly report for the 3 months ending 30 June.

What quarterly update did Newcrest report?

Newcrest’s share price is slipping despite the company reporting that strong fourth quarter results enabled it to deliver on its production and cost guidance for the full 2021 financial year.

Gold production came in at 542,000 ounces, up 6% on the previous quarter. The company credited the strong performance of its Cadia and Telfer mines for the increase. Its Lihir mine saw production fall by 4%, with some unplanned downtime in the autoclaves and lower head grade, as well as recovery rates dragging on output.

Newcrest also reported 38,000 tonnes of copper production for the quarter.

Higher copper prices along with increased copper and gold sales volumes at several of its mines helped drive down the All-In Sustaining Cost (AISC) to $797 per ounce in the June quarter, $96 per ounce lower than the prior quarter.

The AISC margin (what Newcrest sells the gold for minus what it costs to produce it) came it at 55% for the June quarter, or $984 per ounce.

The company achieved this despite increased cost for treatment, refining and transportation, and royalties.

For the full 2021 financial year, Newcrest reported an AISC of $905 per ounce, which works out to an AISC margin of 49%, or $884 per ounce.

Newcrest had forecast gold production for FY21 to come in 1,950,000 ounces and 2,150,000 ounces. With the strong quarter, it’s met guidance with FY21 production of 2,093,322 ounces of gold produced. This was down from the 2,171,118 ounces of gold produced in FY20.

Commenting on the update and the company’s growth outlook, Newcrest’s CEO, Sandeep Biswas said:

We have made significant progress advancing our multiple organic gold and copper growth options during the quarter. At Red Chris and Havieron we commenced decline development works which are the critical path to reaching commercial production. We are also on track to release the outcomes of several of our exciting growth studies through the remainder of the calendar year which we believe will help articulate the future potential of our business.

Newcrest also noted it’s pursuing its goal of net zero carbon emissions by 2050, and its record as an industry leader in low injury rates.

Newcrest share price snapshot

With the price of gold down 12% in the past year, Newcrest’s share price has struggled, currently down 24% over past 12 months. By comparison the S&P/ASX 200 Index (ASX: XJO) is up 21% in that same time.

Year-to-date the Newcrest share price is down 4%.

The post Newcrest (ASX:NCM) share price slides on quarterly update appeared first on The Motley Fool Australia.

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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 R3D Resources Limited (ASX: R3D) share price might be catching the eye of investors on Thursday.

The former investor relations company’s shares appear to be up 250% to 19 cents in late morning trade.

What’s actually happening with the R3D Resources share price?

The R3D Resources share price hit the ASX boards this morning following the successful completion of the reverse takeover of Tartana Resources.

It listed on the ASX boards today after raising $4.25 million at $0.20 per share.

As a result, the R3D Resources share price is actually trading 5% lower today and not 250% higher.

What is Tartana Resources?

Tartana Resources is a company which was established in 2007 with a portfolio of copper-gold exploration and mining assets in the Chillagoe Region in North Queensland.

Management notes that the objective of the acquisition is to grow R3D Resources into a significant copper-zinc producer through exploring and developing these assets.

This is quite the transition for R3D Resources. Until very recently, the company was an Australian-based investor relations company listed on the ASX under the name of R3D Global. It was delisted last year after a long period of underperformance and COVID-19 disruption.

It explained: “R3D’s existing businesses have been dramatically curtailed with the advent of the Covid-19 pandemic and continue to retain an uncertain outlook. Accordingly, the Company’s directors have determined that it is in the best interests of the Company that it diversifies its operations through the acquisition of Tartana Resources, providing an alternate business opportunity to benefit the Company’s shareholders.”

Upon listing today, the company’s Managing Director, Dr Stephen Bartrop, said: “We look forward to recommencing exploration activities shortly. Our projects are first class, and we thank the existing and new shareholders for their support. We look forward to the journey ahead.”

Shareholders will no doubt be hoping the company fares much better as a mining company than it did as an investor relations company.

The post Is the R3D Resources (ASX:R3D) share price really up 250% today? 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 Bruce Jackson.

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The Bank of Queensland Limited (ASX: BOQ) share price is pushing higher this morning. This comes after the leading regional bank advised it has reshuffled its board of directors.

At the time of writing, Bank of Queensland shares are up 1.47% to $8.98.

What did Bank of Queensland announce?

In today’s statement, Bank of Queensland announced that former ME Bank director Deborah Kiers will join the board. This follows the completed acquisition of the Melbourne-based bank on 1 July 2021.

The appointment of Ms Kiers will add further value to the Bank of Queensland board, bringing a wealth of experience within the industry. As such, Ms Kiers will take up the role of independent non-executive director, supporting the integration program of ME Bank.

Bank of Queensland chair Patrick Allaway commented:

We are very pleased to welcome Deborah to the board following the successful acquisition of ME Bank. It is customary for a new director to join following an acquisition and I am pleased by the breadth of corporate experience Deborah brings along with an understanding of the ME Bank business.

As a director with ME Bank since July 2020, and having been chair of the ME Bank board’s People and Culture sub-committee, I know she will bring valuable perspectives on the ME heritage, underscoring for us the unique ME Bank value proposition and culture.

Ms Kiers has more than 26 years’ experience in providing strategic advice to international boards and executive teams. In addition, she has spent almost 10 years as the managing director of business management consulting company JMW Consultants.

Currently, Ms Kiers is also serving as a non-executive director, chair and committee member for global institutional investment manager, IFM Investors. She is also a non-executive director for the Tiverton Agriculture Impact Fund.

Director retirement

The inclusion of Ms Kiers has led to the rotation of directors within the Bank of Queensland group. As such, Kathleen Bailey-Lord will retire from the company as a non-executive director.

Mr Allaway went on to further add:

I want to acknowledge the insight and wise counsel Kathleen has provided to the board and her contribution as a member of the Transformation and Technology; People, Culture & Remuneration; Audit; Risk; and Nomination and Governance committees. Kathleen’s wide experience and strategic thinking has contributed in shaping the business and cultural transformation to date.

The board changes will take effect from 5 August 2021. Ms Kiers’ appointment will be voted on by shareholders at the annual general meeting on 7 December 2021.

Bank of Queensland share price review

Since hitting a decade-low during April 2020, Bank of Queensland shares have moved on an upwards trajectory. Over the past 12 months, the company’s share price has accelerated more than 40%, and is up almost 20% year-to-date.

Bank of Queensland commands a market capitalisation of roughly $5.7 billion, with 640 million shares outstanding.

The post Why the Bank of Queensland (ASX:BOQ) share price is climbing today appeared first on The Motley Fool Australia.

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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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of Netflix (NASDAQ: NFLX) fell by as much as 4.8% on Wednesday morning following the media-streaming specialist’s second-quarter earnings report. Netflix beat some financial targets while falling short on others, and the market focused on the unsatisfactory pieces of the puzzle. The stock was down by 4.1% as of 1:25 p.m. EDT.

So what

Second-quarter revenues rose 19% year over year to $7.34 billion, slightly above management’s guidance of $7.30 billion and Wall Street’s consensus estimate of $7.32 billion. Earnings jumped 90%, landing at $2.97 per diluted share. Here, the guidance target pointed to $3.16 per share and the average analyst wanted to see roughly $3.15 per share. Netflix’s operating profits also came in just below management’s official target, while its 1.54 million net new paying subscribers exceeded the official goal of 1 million.

Looking ahead to the third quarter, Netflix forecast that it would add 3.5 million net new subscribers, below the Street’s consensus estimate of at least 5 million new accounts. Management also said that it will roll out a range of games as a free add-on to its video-streaming plans, turning every Netflix-capable device into a potential gaming platform.

Now what

It’s no surprise to see the Netflix bears focusing on a soft bottom-line reading and a modest forecast for next quarter’s subscriber growth. At the same time, the company’s second-quarter profits were low for all the right reasons, reflecting a 10% increase in content costs and 39% higher marketing expenses. The company is putting its back into building and promoting a better video service. That’s exactly what I was hoping to see in this report.

Wednesday’s share price haircut makes sense from a certain point of view — one in which solid short-term profits matter more than fantastic long-term returns. Netflix is doing everything right at the moment. Opportunistic investors should see this price drop as a wide-open buying window.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Netflix stock fell nearly 5% on Wednesday appeared first on The Motley Fool Australia.

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Anders Bylund owns shares of Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Netflix. The Motley Fool Australia has recommended Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Piedmont Lithium Inc (ASX: PLL) share price has returned from its trading halt and is rebounding on Thursday morning.

At the time of writing, the lithium developer’s shares are up almost 15% to 78.5 cents.

Why is the Piedmont Lithium share price rocketing higher?

The catalyst for the rise in the Piedmont Lithium share price today has been the release of a response to an ASX Price Query.

This query is in response to a 20% decline in the Piedmont Lithium share price on Wednesday before being hurried into a trading halt.

That selloff was driven by reports that the company has not applied for a state mining permit or a necessary zoning variance in Gaston County in the United States. The report also suggests that officials may block the project due to environmental concerns.

How did the company respond?

The company acknowledged the media speculation regarding upcoming local zoning and other approvals. And while it wasn’t able to comment directly on the matter, it provided investors with some information which appears to have settled their nerves.

It advised that it had a formal engagement with Gaston County on Tuesday, which it described as a “constructive work session meeting.”

In addition, it has communicated with the Gaston County Board of Commissioners that it plans to submit a mine permit application in August. After which, it plans to complete a definitive feasibility study in September and then an economic impact study in October.

Management also intends to continue engaging with Gaston County and the local community in an open and transparent manner. This will be via town hall and small group meetings over the next few months.

Finally, the company confirmed that it has not received any official notification from the Gaston County or the State of North Carolina regarding its upcoming rezoning and mine permit applications.

The Piedmont Lithium share price has more than doubled in value in 2021.

The post Why the Piedmont Lithium (ASX:PLL) share price is rocketing 15% higher today 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. owns shares of and has recommended Piedmont Lithium Inc. 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 Santos Ltd (ASX: STO) share price jumped after it posted record sales revenue for the June quarter.

Call it a “peacock” moment for the ASX gas producer as it structs its stuff to woo over Oil Search Ltd (ASX: OSH).

The Santos share price jumped 2.6% to $6.74 in early trade but a lift in the oil price overnight is also boosting the fortunes of the sector.

The Woodside Petroleum Limited (ASX: WPL) share price added 2% to $22.33 while Oil Search share price gained 3% to $4.16 at the time of writing.

In contrast, the S&P/ASX 200 Index (Index:^AXJO) advanced by 0.9% on positive leads from Wall Street.

Santos share price having a peacock moment

Santos unveiled its highest ever quarterly sales of US$1.1 billion ($1.5 billion). This in turn has led to the company declaring a record first half sale revenue of US$2 billion.

Management also tightened its 2021 full year production and sales guidance to the top end of its previous forecast.

Production is now expected to range between 87 million barrels of oil equivalent (mmboe) and 91 mmboe. This compares to the earlier guidance of 84 mmboe to 91 mmboe.

Sales volumes are also getting a boost. The updated guidance is for 100 mmboe to 105 mmboe versus previous estimates of 98 mmboe to 105 mmboe.

Santos share price bolstered by lower cost estimates

To add a bit more kick to the quarterly report, Santos lowered its upstream production costs forecasts too. This is now expected to come in at $7.90 to $8.30 boe. That’s down from $8 to $8.50 boe.

The record quarterly sales were achieved even as second quarter production fell 9% to 22.5 mmboe compared to the previous quarter.

Production decline offset by other strong positives

The drop was due to the completion of the 25% sell down in Bayu-Undan and Darwin LNG to SK E&S on 30 April.

Offsetting this was stronger gas production in Western Australia and Queensland, and higher gas prices.

The average LNG price rose to US$7.52 per Metric Million British Thermal Unit (MMBtu) in the June quarter from US$6.12 per MMBtu in the March quarter.

Demand for domestic gas was also strong with the average gas price hitting US$4.74 per gigajoule (GJ) from US$4.54 per GJ in the previous three months.

Santos share price fails to impress

Santos made no mention of its merger proposal with Oil Search. But the messaging in the quarter was clearly aimed at the target as much as its own shareholders.

Santos chief executive Kevin Gallagher said Santos had delivered another strong quarter. Its performance stands in contrast to the turmoil within Oil Search.

But as I wrote yesterday, the outperformance of the Oil Search share price compared to Santos share price since the merger was announced makes it harder for the suitor to consummate the deal.

Santos will need to offer a bigger engagement ring. This is especially after it reported US$270 million in free cash flow for the quarter and US$572 million for the first half.

The post Santos (ASX:STO) share price jumps on record quarterly sales appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau owns shares of Santos Limited. Connect with me on Twitter @brenlau.

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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