It has been a great start to the week for the Althea Group Holdings Ltd (ASX: AGH) share price.

In afternoon trade, the cannabis company’s shares are up almost 8% to 56 cents.

This latest gain means the Althea share price is now up over 27% since the start of the year.

Why is the Althea share price racing higher today?

The catalyst for the rise in the Althea share price today has been the release of a sales announcement.

According to the release, the company’s Canada-based subsidiary, Peak Processing Solutions, has received a binding purchase order from WeedMD.

The initial order, which is performed as part of a one-year commercial services agreement, is valued at approximately C$130,000. It is expected to be delivered to WeedMD in March.

The release explains that under the agreement, Peak will perform a variety of services for WeedMD. This includes the hydrocarbon extraction of fresh-frozen cannabis biomass used to produce live resin cannabis concentrate products for sale in the Canadian adult-use cannabis market.

Management commentary

Althea’s CEO, Joshua Fegan, said: “We are pleased to have received this initial purchase order from WeedMD, a like-minded innovator in the Canadian adult-use cannabis market. The PO and associated commercial agreement provide further recognition from an industry leader that Peak has the capability to produce and deliver cannabis products of the highest quality. Peak continues to attract strong interest from companies across Canada and the United States looking to enter the Canadian recreational cannabis market.”

This sentiment was echoed by WeedMD’s Executive Chairman and CEO, George Scorsis.

He commented: “We are extremely excited to be working with the Peak team on this first of its kind product for our company and I have the utmost confidence in our execution-focused team of experts. Live resins are a premium offering that are in high demand in the Canadian market and I am confident we have a product that will exceed expectations.”

Today’s gain leaves the Althea share price trading within sight of its 52-week high of 67 cents.

More reading

• What will Elite Cannabinoids mean for ASX cannabis shares?
• How did ASX cannabis shares perform in 1H FY21?
• Here’s why the Althea (ASX:AGH) share price is jumping 7% today
• Why the Althea (ASX:AGH) share price has zoomed up 9% today
• CBD to be sold in pharmacies, ASX cannabis shares react

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX lithium shares have staged the perfect comeback story, with the likes of Galaxy Resources Limited (ASX: GXY), Orocobre Limited (ASX: ORE) and Pilbara Minerals Ltd (ASX: PLS) delivering triple digit returns since October last year.

A lithium revival  

There has been a global trend for a green-led recovery and the push for carbon neutrality has been gaining momentum. 

China is the world’s largest electric vehicle (EV) consumer, with the government previously extending its US$2 billion in EV stimulus and subsidies to 2020. The Chinese Government is targeting a 20% EV penetration rate by 2025 and has pledged to become carbon neutral by 2060.  

To help repair the economic and social damage caused by COVID-19, the European Commission, the European Parliament and EU leaders agreed on a total of $1.8 trillion euros for ‘a greener, more digital and more resilient Europe’. This will be the largest stimulus package ever financed through the EU budget. 

Turning to the United States, President Joe Biden has reversed many of Trump’s anti-climate policies including rejoining the Paris climate accord. More recently, Biden announced his plans to replace the government’s fleet of cars and trucks with electric vehicles assembled in the US. As of 2019, the US Government had over 645,000 vehicles. 

Following the uplift in lithium demand, the supply-side has also faced its own share of COVID-related interruptions. As a result, month on month lithium prices have finally ticked positive after more than two years of spiralling lower. 

Fastmarkets has highlighted recent lithium market and price developments including: 

• China’s domestic battery-grade lithium carbonate market continued its uptrend supported by spot material shortage, although buying activity remained thin after the Lunar New Year holiday.
• The Asian seaborne battery-grade lithium hydroxide spot price recorded its first gain in five months due to increasingly higher prices reported in the market.
• Europe, US lithium complex moved higher on growing tightness in spot availability.

Pilbara Minerals points to profitability 

Pilbara is among the first ASX lithium shares to report its FY21 first-half results. The company cited improved market conditions and operational performance, supporting positive earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.7 million compared to an EBITDA loss of $24.1 million for the December 2019 half year.  

Commenting on the half-year results, Pilbara Minerals’ Managing Director, Ken Brinsden said: 

Lithium raw material markets are now clearly in an upward trend as it relates to both demand and price, which is now translating to improved spodumene pricing. Further, we are fielding more supply enquiries by the day, implying Pilbara Minerals is well-placed with both low-cost operations and near-term expansion capacity to capitalise on this part of the cycle. 

This result is a step in the right direction for ASX lithium shares after two years of negative earnings. Back in 2018, Galaxy Resources was one of the most profitable ASX lithium shares and despite an approximate $1 billion market capitalisation, it traded at a price-to-earnings (P/E) ratio of just 10!

Foolish takeaway

The lithium revolution is in its early days with significant government stimulus and policies in place to support global EV adoption.

With that said, investors still need to be mindful of the risks involved with ASX lithium shares. Government policies and stimulus could be pulled back. For example, in December 2020, China announced its plans to roll back subsidies for EVs by 20% in 2021. 

At the end of the day, the most important factor is lithium spot prices that directly impact a company’s bottom line. So far, lithium prices have tipped higher, but more demand will be needed to see lithium back at its 2018 highs. 

More reading

• Here’s why the Pilbara Minerals (ASX:PLS) share price is dropping today
• Pilbara Minerals (ASX:PLS) share price jumps 6% on broker upgrades
• Pilbara Minerals (ASX:PLS) share price climbed 12% today, but why?
• Why the Orocobre (ASX:ORE) share price is zooming 7% higher today
• Top brokers name 3 ASX shares to sell next week

Motley Fool contributor Kerry Sun owns shares of Galaxy Resources Limited. 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 Senex Energy Ltd (ASX: SXY) share price is on the move today, up 8% in early afternoon trading.

The share price gains follow the company’s results for the financial half-year ending 31 December (H1 FY21).

What did Senex Energy report?

In today’s ASX announcement, Senex Energy reported it has successfully delivered on its $400 million Surat Basin natural gas development projects. The company credits these projects with the significant increases in its gas production, revenue and earnings.

Senex revealed its natural gas production for the half-year increased by 271% over the prior corresponding period, to 8.0 PJ, or 1.4 million barrels of oil equivalent (mmboe). Its Surat Basin gas reserves increased by 27% to 780 PJ.

The company’s sales revenues increased by 239% to $45 million, while underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $25 million was up $26 million from H1 FY20.

Senex Energy held $33 million of net cash as at 31 December, an increase of $78 million from the corresponding half.

Management response

Commenting on the results, Senex CEO Ian Davies said:

Production in the Surat Basin now exceeds 50 TJ/day, or more than 18 PJ/year and equivalent to around 10 per cent of Queensland’s natural gas demand, with natural gas production in the half of 8.0 PJ exceeding total FY20 production, demonstrating the increase in gas field production performance…

Also announced in the half, the sale of our Cooper Basin business to Beach Energy for $87.5 million will provide additional strength to our balance sheet and bolster the cash flow resilience of our natural gas portfolio.

Davies said that with the past half year’s strong performance, the board decided to accelerate dividend distributions to Senex shareholders.

Senex will pay an initial 1 cent per share annual dividend (paid half-yearly) along with an 0.5 cent special dividend after the Cooper Basin sale completes. That represents an annualised dividend yield of 4.3%, 97% franked. Senex said it aimed for a 20–30% dividend payout of its free cash over the long-term.

Senex Energy share price snapshot

Having tumbled more than 62% during the COVID-driven market rout last year, which hit ASX energy shares particularly hard, Senex shares are back in the green for the year, up 4% in 12 months. By comparison, the All Ordinaries Index (ASX: XAO) is flat over the past year.

So far in 2021, the Senex Energy share price is up 11%.

More reading

• ASX 200 Weekly Wrap: ASX lower despite bumper dividends
• Here’s why the IntelliHR (ASX:IHR) share price is rocketing 15% today
• The Silver Mines (ASX:SVL) share price falls despite positive drill results
• The NRW Holdings (ASX:NWH) share price has plunged 16%. Here’s why
• Why the Asaleo Care (ASX:AHY) share price is up 5% today

Motley Fool contributor Bernd Struben 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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Cann Group Ltd (ASX: CAN) shares are edging higher today following the release of the medicinal cannabis company’s financial results for the half year ending 31 December (H1 FY21). At the time of writing, the Cann Group share price is trading at 2.16% higher at 71 cents.

What did the company report?

The Cann Group share price is pushing higher today after the company reported revenue from sales of $1.1 million, up from $600,000 in H1 FY20.

Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at a loss of $4.3 million, a marked improvement from the $7.3 million loss in the prior corresponding period. The company reported an operating loss of $9.4 million, an increase of $1 million from the $8.4 million loss in H1 FY20.

Earnings per share (EPS) of negative 4.98 cents was up from negative 6.00 cents in the prior corresponding half. Cann Group had cash on hand of $27.7 million as at 31 December.

During the half year, the company raised $40.2 million via an institutional placement of $14.3 million and a share purchase plan of $25.9 million. Shares were issued for 40 cents, significantly below the current Cann Group share price of 71 cents.

Cann intends to use the capital, along with a $50 million debt facility from National Australia Bank Ltd. (ASX: NAB), for the construction of its new production facility in Mildura, Victoria. During the half year, the company received the necessary licenses under the Narcotics Drug Act to cultivate and manufacture cannabis at the facility

Commenting on the half-year results, Cann Group CEO Peter Crock said:

While the company experienced some frustrating delays that impacted revenues in the first half, we are extremely encouraged by the building demand for our product from both existing and potential distribution customers overseas and here in Australia. We remain confident that Cann’s growing reputation as a producer of high quality GMP standard medicinal cannabis will enable us to expand market access and build our revenue base over coming periods.

Looking ahead, Crock added:

We are making positive progress on the construction of our state-of-the-art production facilities near Mildura. There is strong momentum behind the business as we continue to see new markets open up and broader acceptance of the benefits of medicinal cannabis.

Noting that overseas sales were impacted by delays caused by COVID-19, Cann Group said some of the revenue it had forecast to be recognised in FY21 is now likely to be recognised in the first half of the 2022 financial year. For that reason, the company revised its full 2021 financial year revenue forecast from $15 million to $8–$10 million.

Cann Group share price snapshot

It’s been a rocky ride for shareholders over the past year. The Cann Group share price is down 29% in 12 months, compared to a flat return on the All Ordinaries Index (ASX: XAO).

However, 2021 has seen a big improvement, with Cann Group shares are up around 18% year to date.

More reading

• What will Elite Cannabinoids mean for ASX cannabis shares?
• Here’s why the Cann Group (ASX:CAN) share price is in a trading halt
• How did ASX cannabis shares perform in 1H FY21?
• Why the Cann (ASX:CAN) share price is pushing higher
• Why Cann, Creso, LiveTiles, & New Corp shares are tumbling lower today

Motley Fool contributor Bernd Struben 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 afternoon trade the S&P/ASX 200 Index (ASX: XJO) has given back its gains and is edging lower. At the time of writing, the benchmark index is down a few points to 6,792.5 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are tumbling lower:

Chorus Ltd (ASX: CNU)

The Chorus share price is down 3.5% to $7.21 following the release of its half year results. For the six months ended 31 December, the New Zealand-based telco reported a 2.1% decline in revenue to NZ$473 million and a 22.5% decline in net profit to NZ$24 million. This was despite the company reporting a 62,000 increase in fibre connections to 813,000. Approximately 17% of these connections are on gigabit plans.

Douugh Ltd (ASX: DOU)

The Douugh share price is down 2% to 23 cents. Investors continue to sell the financial app company’s shares following the release of user numbers last week. The company revealed that since its launch last year, there have been just 8,001 customers onboarded. Investors may not believe this justifies its current valuation.

IOUpay Ltd (ASX: IOU)

The IOUpay share price has crashed 12% lower to 54 cents. Investors have been selling the Malaysia-based buy now pay later (BNPL) provider’s shares since its surprise $50 million placement last week. Sophisticated and institutional investors were offered 100 million shares at 50 cents per share. This represented a 28.6% discount to its last close price at the time of 70 cents. The proceeds will be used for growth initiatives including digital payments and to accelerate new business development opportunities in the BNPL sector in South East Asia.

Reliance Worldwide Corporation Ltd (ASX: RWC)

The Reliance share price has fallen 3% to $4.58. This follows the release of the plumbing parts company’s half year results today. Although Reliance delivered stellar profit growth, its outlook appears to have spooked investors. Management warned that the strong sales growth may not persist.

More reading

• ASX 200 up 0.1%: Macquarie upgrades guidance, Costa impresses, NIB surges higher
• Reliance Worldwide (ASX:RWC) share price in spotlight as it unveils 82% profit surge
• Why the Cirralto (ASX:CRO) share price is in a trading halt
• Douugh (ASX:DOU) share price plummets 9% today despite strong start
• Why the IOUpay (ASX:IOU) share price is charging higher today

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

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The Bingo Industries Ltd (ASX: BIN) share price is having a bleary day today. At the time of writing, its shares are trading for $3.14 apiece, a drop of 1.72%.

The Bingo share price opened at $3.19 this morning and rose as high as $3.21 before sharply dropping off around 11 am.

That drop appears to be a late response to the earnings report Bingo delivered to investors this morning. This earnings report covers the first half of FY2021 (the 6 months ending 31 December 2020).

What is Bingo?

Think bins, not meat trays here. Bingo, along with its rival Cleanaway Waste Management Ltd (ASX: CWY), is one of the largest waste collections and processing companies on the ASX.

Bingo is known for its commercial and industrial waste collections business, including the ‘Dial-a-Dump’ business that it acquired back in 2018.

What did the company report today?

Bingo’s earnings reflect a tough 6 months for the company. Revenues came in at $241.1 million, down 3.1% from the corresponding period in FY2020 (1H20). Bingo’s revenue sectors went backwards over the period, except for ‘post-collections revenue’, which rose 5% to $170.9 million.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) was $65.2 million, down 20.5% from 1H20’s $82 million. That dragged net profits after tax down 41.2% to $16.7 million, from 1H20’s $28.4 million. Operating free cash flow also fell, down 8.9% from 1H20’s $70.4 million to $64.2 million. Pleasingly for Bingo investors, net debt for the company fell 1.2% from H120’s $321.1 million to $317.4 million.

Bingo has announced an interim dividend for shareholders of 1.5 cents per share, fully franked. That represents a payout ratio of 62%. That’s down 32% from last year’s interim dividend of 2.2 cents per share, but flat with Bingo’s 2020 final dividend. On current pricing, that would give Bingo an annualised dividend yield of 0.95%.

Bingo describes the earnings results as a “solid financial performance despite challenging market conditions”. The company blames the COVID-19 pandemic, especially in Victoria, for a “softening” of its total addressable market, as well as for higher labour costs.

Looking forward, Bingo’s management is anticipation that the company is “well-positioned for market recovery”. It notes that the near-term outlook for the company is now “better than previously anticipated”.

Management told investors to expect margins to continue to decline for the rest of FY2021. However, it has also told investors that it sees the potential for “significant upside in FY2022 and beyond as the company’s addressable markets expand.

About the Bingo share price

The Bingo share price has had a wild and woolly 12 months. At the current share price, it is more or less where it was 12 months ago. But Bingo shares took a dive in March last year (along with the rest of the market), falling all the way to $1.47.

The Bingo share price has recovered strongly since of course, and is up more than 100% since then. On the current price, the company has a market capitalisation of $2.04 billion.

More reading

• These were the best performing ASX 200 shares in January
• ASX 200 Weekly Wrap: Change in America spurs ASX 200 higher
• These were the best performing ASX 200 shares last week

Motley Fool contributor Sebastian Bowen 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 Singular Health Group Ord Shs (ASX: SHG) share price has been a positive performer on Monday.

In morning trade the 3D medical imaging company’s shares were up as much as 10% to 45 cents.

The Singular Health share price has since pulled back a touch but is still up 3.5% to 42.5 cents currently.

Why is the Singular Health share price shooting higher?

Investors have been buying Singular Health shares today after it announced a new purchase order.

According to the release, the company has received a $170,000 purchase order and payment schedule from FlowCentric Technologies. The purchase order will allow FlowCentric Technologies to conduct a pilot program using Singular Health’s GeoVR software.

The pilot program aims to develop a prototype, commercially viable product, with an integrated special database that utilises imaging and predictive technologies for mining and exploration. It will leverage the company’s proprietary Volumetric Rendering Platform (VRP).

FlowCentric Technologies is a software development company delivering Business Process Management software to over 350,000 users. It services a number of Tier 1 resources companies globally.

Joint venture

In addition to the purchase order, the two companies are currently finalising the terms for a joint venture in which they will each hold 50% of the issued shares.

This joint venture will aim to develop and utilise advanced imaging and predictive technologies into a software application, GeoVR, that can be used in mining and exploration activities.

The release explains that upon the receipt of the $170,000, Singular Health will be obligated to transfer all title and intellectual property relating to the GeoVR software into the new joint venture company.

Management commentary

Singular Health’s CEO, Thomas Hanly, commented: “Whilst we remain focused on our core vision of Developing Better Health Literacy, this pilot program with FlowCentric Technologies presents a great opportunity to deploy our proprietary Volumetric Rendering Platform for use in the mineral resources sector.”

“FlowCentric is a logical partner for Singular Health with their large number of existing business relationships in South Africa and Australia with leading geological software providers and resource companies.”

“Furthermore, forming joint ventures with established businesses to build new verticals is critical to ensuring that we remain focused on our medical applications whilst also providing access to domain specific expertise and established client bases. The revenue earned from this pilot program also reinforces the Company’s objective of advancing the commercialisation of its technology,” he concluded.

The Singular Health share price has more than doubled since its IPO earlier this month.

More reading

• The Singular Health (ASX:SHG) share price is now up 140% since its IPO
• Singular Health (ASX:SHG) share price rockets 100% higher following IPO
• Why Novonix, Recce, Singular Health, & Starpharma shares are storming higher
• Singular Health (ASX:SHG) shares arrive on the ASX

Motley Fool contributor James Mickleboro 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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Superloop Ltd (ASX: SLC) shares are on the move this morning following the company’s announcement of a signed services agreement with MNF Group Ltd (ASX: MNF). At the time of writing, the Superloop share price is up 6.63% to $1.045.

Let’s take a closer look at what the independent connectivity services provider updated the market with.

What’s driving the Superloop share price higher?

The Superloop share price is firmly in positive territory after the company reported a significant win that will boost its coffers.

According to its release, Superloop has been awarded a major multi-year contract with Symbio, a wholly-owned subsidiary of MNF Group.

Under the deal, Superloop will become the exclusive supplier of wholesale nbn aggregation services. This includes Symbio transferring all existing and future supply arrangements onto the Superloop Connect platform. In addition, it’s anticipated that Superloop will take on a greater role in using Symbio’s range of voice offerings.

Superloop shares are responding positively today after the company advised the new contract award is expected to generate revenue of more than $25 million. This represents the single largest deal the company has signed to date.

What is Superloop Connect?

Superloop Connect is an in-house-developed platform that offers nbn aggregation services to customers of any size. The platform enables accessing nbn backhaul and virtual nni capabilities that bring fast, reliable, secure connectivity layered with a range of managed services.

Management commentary

Superloop CEO Paul Tyler welcomed the new deal, saying:

We are excited that Symbio has chosen Superloop to underpin their nbn network services further building on our longstanding and successful relationship. The Superloop network has been designed for this very purpose and we’ve built significant capacity to cater for the continued growth we are anticipating across Australia.

CEO of MNF Group Rene Sugo added:

We selected Superloop to be our partner for the provision of nbn aggregation services due to the state-of-the-art Superloop Connect platform combined with the strength of their underlying network and looking forward to taking this long-term partnership from success to success.

The Superloop share price has tracked around 25% higher over the past 12 months.

More reading

• Is HyperOne listed on the ASX?

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of SUPERLOOP FPO. The Motley Fool Australia owns shares of and has recommended MNF Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Integral Diagnostics Ltd (ASX: IDX) share price is on the rise today after the company announced its results for the six months ended 31 December 2020 (1H FY21).

The radiology provider reported growth across all of its business units as well as through acquisitions. The Integral Diagnostics share price is presently up 3.63%, trading at $4.85.

What’s moving the Integral Diagnostics share price today?

The Integral Diagnostics share price is on the rise as investors digest its latest set of results. The company reported operating revenue of $170.7 million for 1H FY21. This is a 29.5% increase compared to the $131.8 million reported for 1H FY20.

Operating earnings before interest, tax, depreciation and amortisation (EBITDA) was $52 million for 1H FY21 compared to $34.6 million for 1H FY20, a 50.3% leap.

Integral Diagnostics reported a statutory net profit after taxes (NPAT) of $19.9 million for 1H FY21, which is an 82.6% hike from the $10.9 million reported in the prior corresponding period.

Free cash flow also fired up 70.2% compared to 1H FY20, totalling $42.7 million for the period.

The board has declared a first half fully franked dividend of 5.5 cents per share.

CEO comments

Commented on the company’s half-year performance, CEO and managing director Dr Ian Kadish stated:

These strong results in a challenging period were made possible by some of the finest doctors and staff in the industry, frontline healthcare workers who always put our patients and referrers first. The results reflect organic growth above market, and solid contributions from our acquisitions of Imaging Queensland and Ascot Radiology. We are also pleased with the performance of our new teleradiology service, IDXt, and the potential of our JV, MedX, with the Medica Group Plc, one of the world’s premier teleradiology providers.

Looking ahead, the company advised that it will evaluate further acquisitions and continue to drive organic growth. Other priorities include progressing the use of digital and artificial intelligence (AI) technologies to support its customer base.

Integral Diagnostics shares have gained 19.39% over the previous six months. Year-to-date, the Integral Diagnostics share price has jumped 7.83%.

More reading

• Why the Superloop (ASX:SLC) share price is accelerating 7% today
• Here’s why the Ampol (ASX:ALD) share price is sliding today
• Next Science (ASX:NXS) share price higher on earnings mixed bag
• Facebook vs Australia feud escalates as government pulls ads
• ASX 200 up 0.1%: Macquarie upgrades guidance, Costa impresses, NIB surges higher

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Integral Diagnostics 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 Ampol Ltd (ASX: ALD) share price is down 2.45% at $25.85 in morning trade after the company released its full-year results.

The petroleum company (previously known as Caltex) reported that the coronavirus pandemic had a material impact on Australian fuel demand, thus delivering a hit to performance.

Here’s a closer look at the results driving the Ampol share price this morning.

Results highlights at a glance

For the full year ended 31 December 2020, Ampol reported group earnings before interest and taxes (EBIT) on a replacement cost basis (RCOP) of $401 million. This compares to $607 million for the same period in 2019.

Total Australian fuels sales volumes were 13.6BL, a 17% drop compared to 2019. However, international volumes grew by 36%, totalling 6.5BL.

The total declared dividends for 2020 is 48 cents per share (fully franked).

Commenting on the annual performance, Ampol CEO Matt Halliday said:

Ampol has navigated a tough operating environment, with sustained weakness in refining margins, ongoing government restrictions impacting travel and aviation in particular, and broad economic weakness impacting demand throughout the year.

Despite the many challenges and disruptions faced, I am pleased with our progress in executing our strategy and delivering on our promises to shareholders.

In 2020, we released significant capital through our convenience retail property transaction, announced the return of capital to shareholders through our recently completed off-market buy-back, and delivered a subordinated notes issuance. We also commenced our rebrand to Ampol and we are well positioned to deliver on our targeted $195 million EBIT uplift by 2024.

Outlook for Ampol

The company advised that challenging market conditions had persisted during the early onset of 2021.

Ampol said the impact of COVID-19 on international travel had significantly impacted the demand for jet fuel. As a result, the fourth quarter of 2020 saw a 56% drop in demand compared to the prior corresponding period.

Demand for diesel fuel has remained steady during the challenging business environment, carried along by significant customer bases, including the mining industry.

Looking ahead, Mr Halliday added:

Heading into 2021, we remain focused on cost and capital efficiency and will continue to make decisions to improve returns and deliver growth to shareholders. Our refining review is ongoing, with an outcome to be communicated to stakeholders in 2Q 2021.

Snapshot of the Ampol share price

The Ampol share price has fallen 25.15% in the past 12-month period.

Ampol has a market capitalisation of $6.3 billion. There are presently 238.3 million shares outstanding.

More reading

• ASX 200 Weekly Wrap: Reality (and GameStop) finally hits ASX
• These were the worst performing ASX 200 shares last week
• Why Ampol, Flight Centre, Syrah, & Telix shares are dropping lower
• ASX 200 up 0.35%: Afterpay & Appen push higher, big four banks rising

Motley Fool contributor Gretchen Kennedy 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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