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The Star Entertainment Group Ltd (ASX: SGR) share price isn’t going anywhere on Monday.

That’s because the casino and resorts operator’s shares were slammed into a trading halt before the market open this morning.

Why is the Star Group share price halted?

The company requested a trading halt on Monday after it received some more bad news.

Its request states the following:

The Trading Halt is necessary as The Star expects to make an announcement to ASX regarding correspondence received from the NSW Independent Casino Commission (NICC) on 19 February 2024 regarding the commencement of an inquiry under the Casino Control Act 1992 (NSW).

The Star Group share price is expected to be offline until Wednesday.

What’s going on?

The NICC has announced a second inquiry into The Star, to investigate the Sydney casino’s suitability. The regulator has appointed Adam Bell SC to conduct the inquiry, before the independent manager’s term ends in June.

Chief Commissioner, Philip Crawford, commented:

There was a substantial shift required and The Star has had 18 months to demonstrate that it has the capability and resources to regain its casino licence.

However, when the manager was extended for the second time in December last year, the NICC wasn’t satisfied that The Star was progressing its remediation in a timely fashion. Crawford adds:

The NICC has had concerns about the extent that remediation is attributable to the manager’s oversight and direction versus what is being driven by The Star’s reform agenda. Bell Two will bring us back to the Bell Report and The Star’s efforts to regain its casino licence in the shadow of that report.

Bell Two starts today and will run for approximately 15 weeks. The final report is due to the NICC on 31 May. Crawford warned The Star:

There is much at stake for The Star, so the NICC is giving the casino every chance it can to demonstrate whether it has the capacity and competence to achieve suitability.

The post Star Group share price is frozen in further Sydney license limbo appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Westpac Banking Corp (ASX: WBC) shares are racing ahead of rival S&P/ASX 200 Index (ASX: XJO) bank stocks today.

In early afternoon trade on Monday, the Westpac share price is up 2.4% at $25.17 a share.

Here’s how the other big four ASX 200 bank stocks are performing at this same time:

• Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares are down 0.1%
• National Australia Bank Ltd (ASX: NAB) shares are down 0.4%
• Commonwealth Bank of Australia (ASX: CBA) shares are up 0.6%

For some broader context, the ASX 200 is up 0.1%.

Here’s why Westpac is, well, leading the pack.

What’s boosting Westpac shares today?

Westpac stock is marching higher today following the release of the bank’s quarterly update.

ASX 200 investors don’t appear put off by the slip in the bank’s net interest margin (NIM), nor its profits coming in below consensus expectations.

Core NIM dropped 0.04% from the second half of 2023 to 1.80%. And net profit was down 6% to $1.5 billion.

Investors are likely shrugging off these dips because they were already largely baked into Westpac shares. Management had previously cautioned the bank was facing persistent inflationary headwinds. And they forecast a contraction in NIM amid stiff, ongoing competition in the lucrative Aussie mortgage markets.

It’s also worth noting that, excluding notable items, net profit for the three months was $1.8 billion, in line with 2H 2023. And management highlighted that the quarterly profit headwinds related solely to hedge accounting which they said “will reverse over time”.

Of some concern for Westpac shares, high interest rates and inflation do appear to be impacting Aussie households and some of the bank’s loan books. Westpac reported credit impairment provisions of $5.1 billion at the end of 2023. That came in $1.5 billion above the expected losses of the bank’s base case scenario.

But Westpac shares could be in for some more tailwinds, with only 31% of the bank’s $1.5 billion on market share buyback completed. When a company buys back its shares, that leaves fewer shares available and tends to support the share price.

The post Why are Westpac shares leaping ahead of rival ASX 200 bank stocks on Monday? appeared first on The Motley Fool Australia.

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More reading

• Westpac share price on watch following $1.8 billion quarterly profit
• 5 things to watch on the ASX 200 on Monday
• Which ASX 200 large-cap shares offer the best dividend yields in 2024?
• Forget Westpac and buy these top ASX dividend stocks
• Big news: 15 ASX 200 shares smashing 52-week highs this Tuesday

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ASX earnings season continues this week, with ASX 200 healthcare stock Cochlear Ltd (ASX: COH) reporting its latest numbers this morning.

As we covered at the time, investors didn’t really like what Cochlear had to say. The company’s shares are currently down a hefty 2.16% at $327.30 each.

That was despite Cochlear revealing a 20% rise in revenues for the half-year ending 31 December. Underlying net profits also rose enthusiastically, up 21% year on year to $192 million.

Perhaps investors are disappointed that Cochlear has decided to pause its share buyback program. But there are probably not too many investors that would feel let down by what Cochlear announced in the dividend department.

Cochlear revealed this morning that its next interim dividend would be worth $2 per share, partially franked at 70%.

Everything you need to know about Cochlear’s record interim dividend

This is a pretty special dividend for Cochlear, as it’s the largest single shareholder payout in the company’s history. For one, it represents a 14.3% increase over last year’s final dividend of $1.75 per share. But it’s also a 29% spike over last year’s interim dividend of $1.55 per share.

Cochlear shares are scheduled to trade ex-dividend for this upcoming payment next month on 21 March. So for anyone who wants to bag this dividend but doesn’t presently own Cochlear shares, 20 March is the last day you can buy shares with the rights to this dividend attached.

Investors wishing to receive additional Cochlear shares instead of a cash payment will be disappointed though. Cochlear is not currently running a dividend reinvestment plan (DRP). So receiving the cold hard cash is the only option.

Payday will then roll around on 15 April.

This upcoming payment is set to have a decent impact on the company’s dividend yield. At the current share price, Cochlear shares are trading on a trailing yield of 1.01%, but with this dividend factored in, the company now has a forward yield of 1.15%.

The post Everything you need to know about the record Cochlear dividend appeared first on The Motley Fool Australia.

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More reading

• Cochlear share price falls despite 29% dividend boost
• Big news: 15 ASX 200 shares smashing 52-week highs this Tuesday
• Here’s how the ASX 200 market sectors stacked up this week
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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 positions in and has recommended Cochlear. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re wanting to receive the next Commonwealth Bank of Australia (ASX: CBA) dividend, then you will have to get a wriggle on.

That’s because the banking giant’s shares will soon be going ex-dividend for its interim payout.

When a share goes ex-dividend, it means the rights to the forthcoming payment are settled.

So, even if you were to buy CBA shares on that date, the dividend wouldn’t end up in your bank account. Instead, it would go to the seller of its shares, even though they no longer own them.

The CBA dividend

Last week, CBA released its half-year results and reported a 0.2% lift in operating income to $13,649 million and a 3% decline in cash net profit after tax to $5,019 million. The latter was driven by a combination of margin compression and higher operating expenses.

However, despite the falling profits, the CBA board elected to increase its interim dividend.

It declared a fully franked interim dividend of $2.15 per share, which was a 2.4% increase on last year’s payout.

This lifted its payout ratio to 72% from 68% a year earlier. The bank notes that this gives a good portion of Australia a nice income boost. It commented:

We have increased our dividend payout ratio, improving shareholder returns and benefitting more than 12 million Australians who own CBA shares either directly or through their superannuation holdings.

Ex-dividend date approaches

CBA shares will go ex-dividend for this payout on Wednesday 21 February.

This means that you need to own its shares before the close of play on Tuesday if you want to receive it.

As things stand, CBA intends to make its payment in a little over a month on Thursday 28 March, just before the Good Friday public holiday.

The post You need to act fast if you want to receive the next CBA dividend appeared first on The Motley Fool Australia.

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More reading

• Why these 3 top ASX 200 stocks grabbed the Motley Fool’s headlines this week
• 5 steps to becoming a milionaire with ASX shares
• 7 ASX 200 shares with ex-dividend dates next week
• Crikey! Will ASX 200 investors really have to wait until 2025 for RBA interest rate cuts?
• How much passive income could I earn buying $5,000 of CBA shares 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is up 0.3% during the Monday lunch hour, but this ASX 200 stock is racing ahead of those gains.

Shares in the plumbing and heating products company closed on Friday trading for $4.41. At the time of writing shares are swapping hands for $4.83, up 9.4%

Any guesses?

If you said Reliance Worldwide Corp Ltd (ASX: RWC), give yourself a virtual gold star.

ASX 200 investors are bidding up the company on the back of its half-year results for the six months ending 31 December (H1 FY 2024).

Read on for the highlights.

(Note, all figures in US dollars.)

ASX 200 stock leaps on debt reduction

• Net sales of $590 million, down 2% from H1 FY 2023, in line with guidance
• Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of $125 million, down 3% year on year
• Adjusted net profit after tax (NPAT) of $68 million, up 0.3% on the prior corresponding half
• Cash flow from operations of $152 million, up 61% with net debt falling by $142 million year on year
• Interim dividend of 2.25 US cents per share unfranked, plus an on-market share buyback of $17.8 million

What else happened for Reliance Worldwide during the half?

Among the metrics that look to be sending the ASX 200 stock soaring today is the 61% year on year increase in cash flow. The company also noted its operating cash flow conversion was 121% of EBITDA, compared to 74% in H1 FY 2023. It credited the improvement to a reduction in working capital and lower inventory levels.

While Reliance Worldwide’s sales in the Americas were in line with the H1 FY 2023, sales slipped in the Asia Pacific and EMEA regions. However, investors look to be taking this in stride today as it’s in line with expectations management announced back in August.

Operating EBITDA (as opposed to adjusted EBITDA) was down 19% year on year to $113 million. This reflects the one-off costs related to the closure of its Supply Smart business in the Americas and restructuring in EMEA.

The ASX 200 stock also amended its distribution policy, while still intending to payout between 40% and 60% of annual NPAT. The new policy will see around half of the distributions delivered via dividends with the other half coming in the form of on-market share buybacks.

What did management say?

Commenting on the results sending the ASX 200 stock surging today, CEO Heath Sharp said:

We delivered sales ahead of expectations in the Americas, with new product sales underpinning our stable revenue performance. We have continued to execute strongly in rolling out SharkBite Max and PEX-a, as well as gaining increased traction with other new products such as EZ-Flo gas appliance connectors.

In Asia Pacific external sales were down 4%. While new housing starts in Australia were 15% lower, repair and remodel volumes continued to be relatively stable…

Our strong cash generation has enabled us to comfortably fund the acquisition of Holman Industries from our existing debt facilities.

What’s next for the company?

For the 2024 financial year, the ASX 200 stock expects net sales to be down by low single-digit percentage points compared to FY 2023. Reliance Worldwide said it is targeting stable operating margins and continued strong operating cash flow generation.

How has the ASX 200 stock been tracking?

It’s been a good year for Reliance Worldwide shareholders.

The ASX 200 stock has gained 36% in 12 months, not including dividends.

The post Guess which ASX 200 stock is surging 9% on robust cash generation? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Reliance Worldwide. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Nuix Ltd (ASX: NXL) share price is having a very disappointing start to the week.

At one stage, the investigative analytics and intelligence software provider’s shares were down as much as 15% to $1.65.

This follows the release of the company’s half-year results this morning.

Nuix shares sink on results day

• Annualised contract value (ACV) up 17.3% to $199.6 million
• Statutory revenue up 12.3% to $98.4 million
• Statutory earnings before interest, tax, depreciation, and amortisation (EBITDA) down 17.6% to $17.2 million
• Statutory loss after tax of $4.8 million (compared to $1.3 million profit)

What happened during the half?

For the six months ended 31 December, Nuix reported a 17.3% lift in ACV to $199.6 million. This was slightly above its guidance range and driven by strength in its existing customer base. All three key regions (North America, EMEA and Asia Pacific) reported double-digit ACV growth.

Things weren’t quite as positive for its EBITDA, which fell 17.6% to $17.2 million largely because of legal costs. However, on an underlying basis, Nuix’s EBITDA was up 12.8% to $28.4 million.

For the same reasons, Nuix recorded a net loss after tax of $4.8 million.

Nuix ended the half with cash on hand of $24 million and no debt. Though, to shore things up, it has announced a $30 million multicurrency revolving credit facility from HSBC.

Management commentary

Nuix CEO, Jonathan Rubinsztein, commented:

During the half, the Nuix team has not only delivered on further momentum in top line growth, but also made significant progress on our core strategic growth initiative, Nuix Neo. We have continued to drive growth in ACV and Statutory Revenue, while remaining focused on costs, contributing to further growth in Underlying EBITDA. Commercial relationships with our customers remain strong, as evidenced by further momentum in our NDR and generally low churn.

Outlook

Failing to stop the Nuix share price from sinking today is news that the company has reaffirmed its targets for FY 2024.

This includes ~10% ACV and statutory revenue growth in constant currency, revenue growth exceeding underlying cost growth, and being underlying cash flow positive for the year.

The Nuix share price is still up 58% over the last 12 months following today’s weakness.

The post Nuix share price sinks 15% after swinging to half-year loss appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX 200 stock is surging 9% on robust cash generation?
• 3 Australian value stocks to buy right now
• Cochlear share price falls despite 29% dividend boost
• APM shares rocket 73% after rejecting $1.5b takeover
• ASX 200 energy stock Ampol charging higher on record 2023 sales

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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I love finding Australian value stocks that the market is undervaluing. I’m going to write about three ideas I think the market is ignoring.

In my mind, a value stock is a business that has a relatively low price/earnings (P/E) ratio which could easily be trading on a higher valuation. I like businesses that pay dividends because a low valuation usually means a higher dividend yield – we can get a good return that way.

KMD Brands Ltd (ASX: KMD)

KMD is a business that operates three brands – Kathmandu, Rip Curl and Oboz, which are essentially retailers that are focused on outdoor clothing and footwear, for cold and hot weather. I’ll point out that this business is a New Zealand business, but it’s listed on the ASX and makes a lot of its sales in Australia, so I’m going to call it a New Zealand (and Australian) value stock.

As you might expect, sales have weakened amid the current inflationary environment and higher interest rates.

The KMD Brands share price has fallen 60% from November 2021, so it’s much better value now. I don’t think retail conditions are going to be weak forever, though it could take a year or more until households are able/willing to start spending more again.

But, I think KMD Brands is priced at a very cheap level for that possible rebound. According to the projections on Commsec, it’s valued at 7 times FY26’s estimated earnings and it could pay a possible dividend yield of almost 10% that year.

Lindsay Australia Ltd (ASX: LAU)

This business is a sizeable and growing player in the transport and logistics space. It claims to be a leading national service provider to the agriculture, horticulture and food-related industries. It can assist farmers grow, package, transport and distribute their produce throughout Australia and globally.

Despite steadily growing revenue over the past five years, and focusing on more growth for the long-term, the Australian value stock is priced at a cheap level in my opinion.

According to Commsec, it’s priced at 7.2 times FY25’s estimated earnings and 6.6x FY26’s estimated earnings. It’s priced so cheaply that the fairly low projected dividend payout ratio could lead to a grossed-up dividend yield of 8.5% in FY25 and 8.9% in FY26.

The business is priced cheaply, it’s indirectly benefiting from the growing population and it offers a large dividend yield. There’s also a possibility it could grow via acquisitions, which would boost scale.

Metcash Ltd (ASX: MTS)

Metcash supplies IGA supermarkets around Australia, as well as a large number of independent liquor retailers like Cellarbrations, The Bottle-O, IGA Liquor, and Porters Liquor.

The business has a very promising hardware division which includes Mitre 10, Home Timber & Hardware and Total Tools.

I believe population growth is a useful tailwind for all three of the Australian value stock’s main segments, with potential interest rate cuts being a possible booster for hardware earnings.

While it’s not as strong as Coles Group Ltd (ASX: COL) or Wesfarmers Ltd‘s (ASX: WES) Bunnings, I think it’s comparable, but trades on a much cheaper P/E ratio.

According to Commsec, the Metcash share price is valued at just 12 times FY25’s estimated earnings with a possible grossed-up dividend yield of 8.3% for that year.

It is valued at 11.8 times FY26’s estimated earnings with a possible grossed-up dividend yield of 8.6%. Those numbers are attractive to me, which is partly why I recently invested.

The post 3 Australian value stocks to buy right now appeared first on The Motley Fool Australia.

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More reading

• 2 ASX shares under $50 new investors can buy confidently
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Motley Fool contributor Tristan Harrison has positions in Metcash. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lindsay Australia and Wesfarmers. The Motley Fool Australia has positions in and has recommended Coles Group and Wesfarmers. The Motley Fool Australia has recommended Lindsay Australia and Metcash. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Cochlear Limited (ASX: COH) share price is falling this Monday morning, despite the company releasing its latest earnings covering the six months to 31 December before market open.

Cochlear shares closed at $334.54 last week. But the ASX 200 healthcare stock opened at $331.14 this morning before dropping down to $327.76 at the time of writing, a fall worth 2.03%.

What did the company report?

Here’s what Cochlear reported for the first half of the 2024 financial year this morning:

• Revenues of $1,113 million, up 20% in constant currency terms over the first half of FY2023
• Underlying net profit of $192 million, up 21% year on year in constant currency terms
• Statutory net profit of $191 million, also up 21% year on year
• Underlying net profit margin of 17%
• Interim dividend of $2 per share, partially franked at 70%, declared, a 29% increase over 2023
• Share buyback program paused

Although Cochlear announced a big rise in its interim dividend, the company has also suspended its share buyback program “given the current high interest rate environment”.

What else happened in 1H24?

Cochlear’s 20% rise in revenues was assisted by a 14% increase in Cochlear implant units shipped over the period, along with a 35% rise in services revenue. The latter was thanks in part to “strong upgrade demand for the recently released Cochlear Nucleus 8 Sound Processor”.

Cochlear first flagged the success of the Nucleus 8 back in October last year during the company’s annual general meeting. At the time, Cochlear’s management also guided investors to expect a rise of between 16% and 23% in underlying net profits for the 2024 financial year.

At the time, this didn’t have much of a positive impact on the Cochlear share price. But back on 8 February, Cochlear told shareholders that they can now expect an increase of between 26% and 31% in underlying net profits over FY2024.

That announcement saw a 4.4% rise in the value of Cochlear shares.

What did Cochlear management say?

Here’s some of what Cochlear’s management had to say about the numbers the company has revealed today:

Cochlear implant trading conditions continue to be strong across most markets, with an improving trend in adult referral rates in many developed countries. We have maintained the market share gains made in FY23, with strong market growth across the first half.

The key change to our expectations is that we now expect to achieve 10-15% growth in our cochlear implant units for FY24 compared to the high single-digit growth expected in August.

Cochlear 2024 half-year results

What’s next for Cochlear?

Looking forward, Cochlear has told investors that “we expect the positive momentum of the first half to continue into the second half”. The company reaffirmed its guidance earlier this month of a 21-34% rise in underlying net profits for the full 2024 financial year.

That’s partly thanks to ongoing favourable implant trading conditions, which reportedly “continue to be strong across most markets, with an improving trend in adult referral rates in many developed countries”.

As such, Cochlear now expects to achieve “10-15% growth in our cochlear implant units for FY24 compared to the high single-digit growth expected in August”.

Cochlear share price snapshot

The Cochlear share price has performed exceptionally well in recent months. The company is up 8.76% in 2024 to date at current pricing, as well as up 23.11% over the past six months. Over the past year, investors have enjoyed a share price gain of just over 46.7%.

At the current Cochlear share price, this ASX 200 healthcare stock has a market capitalisation of $19.96 billion, a price-to-earnings (P/E) ratio of 71.85 and a trailing dividend yield of 1.01%.

The post Cochlear share price falls despite 29% dividend boost appeared first on The Motley Fool Australia.

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More reading

• Big news: 15 ASX 200 shares smashing 52-week highs this Tuesday
• Here’s how the ASX 200 market sectors stacked up this week
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Why AGL, Cochlear, Mirvac, and News Corp shares are storming higher

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 positions in and has recommended Cochlear. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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APM Human Services International Ltd (ASX: APM) shares are rocketing on Monday.

At one stage today, the human services provider’s shares were up as much as 73% to $1.44.

They have since pulled back a touch but remain up 53% to $1.27 at the time of writing.

Why are APM shares rocketing?

Investors have been scrambling to buy the company’s shares this morning after it confirmed that it has received a takeover approach.

According to the release, the company has been in discussions with CVC Asia Pacific and received a conditional and non-binding indicative proposal on Friday.

CVC has offered to acquire APM by way of a scheme of arrangement for $1.60 per share. This represents a 93% premium to its last close price and values the company at approximately $1.5 billion.

The release notes that the proposal was received following a period of engagement between APM and CVC, including the provision of information and due diligence under the terms of a non-disclosure agreement.

Thanks but no thanks

Despite the significant premium on offer with this proposal, the APM board has unanimously decided to reject it.

They believe the proposal does not sufficiently reflect the fundamental value of APM and the potential of its market leading platform globally.

The board also highlights that although APM is currently operating in a challenging environment at a historic low point of the unemployment cycle, they are confident in the company’s outlook.

APM’s executive chair, Ms Megan Wynne, said:

APM remains focused on supporting our people, continuing to deliver the highest-quality services globally for our clients and stakeholders, and executing on our strategy. The Board and I have full confidence in APM’s management team to deliver long-term value to our shareholders. I am confident in the outlook for APM.

The post APM shares rocket 73% after rejecting $1.5b takeover appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended APM Human Services International. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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S&P/ASX 200 Index (ASX: XJO) energy stock Ampol Ltd (ASX: ALD) is charging higher today.

Shares in the petroleum refiner and fuel distributor closed Friday trading for $37.59. In morning trade on Monday, shares are swapping hands for $38.03 apiece, up 1.17%.

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

This outperformance comes following the release of Ampol’s full-year 2023 results.

Here’s what Ampol reported.

ASX 200 energy stock gains amid earnings boost

• Earnings before interest and tax (EBIT) – excluding significant items – came in at $1.30 billion, up 2% on 2022
• Statutory net profit after tax (NPAT) of $549 million, down 25% year on year
• Net borrowings as at 31 December of $2.20 billion, down from $2.46 billion a year earlier, with leverage at 1.6 times and committed facilities of $5.0 billion
• Final fully franked dividend of $1.20 per share plus special dividend of 60 cents per share for a record final payout of $1.80 per share, up 16% from 2022

What else happened with Ampol during the year?

The growth in 2023 earnings that looks to be helping the ASX 200 energy stock outperform today was spurred by earnings growth in Ampol’s non-refining divisions, along with a full 12 months’ contribution from Z Energy.

Ampol acquired Z Energy in mid-2022, and the company reported it has so far delivered on the expected acquisition benefits and synergies. In 2023, Z Energy contributed EBIT of $264 million to group earnings.

2023 saw Ampol achieve record total sales volumes of 28.4 billion litres, up 17% year on year.

And passive income investors will be pleased with the all-time high, fully franked final dividend payout of $1.80 per share.

That takes the dividend payments for 2023 to $2.75 per share for a total payout of $655 million. This comes in at 89% of NPAT, at the top of Ampol’s payout range for the full year.

What did management say?

Commenting on the results that are seeing the ASX 200 energy stock outperform today, CEO Matt Halliday said:

The result reinforces the adaptability and resilience of Ampol’s integrated supply chain in what was another year where energy markets moved rapidly in response to geopolitical events. We continued to grow our Petrol and Convenience earnings, delivering another strong performance in Convenience Retail…

The balance sheet is strong, providing Ampol with the flexibility to invest in our core fuels and convenience businesses, and to prudently invest in the energy transition while delivering our highest ever dividends to shareholders.

What’s next for Ampol?

Looking to what could impact the ASX 200 energy stock in the months ahead, Ampol plans to upgrade its Lytton refinery to produce gasoline compliant with the government’s new fuel specifications for both regular and premium gasoline grades.

Ampol is also continuing to extend its charging network for EVs. The company expects this to extend to 300 charging bays in Australia and 150 charging bays in New Zealand by the end of 2024.

How has this ASX 200 energy stock been tracking?

The Ampol share price is up 18% in 12 months. And that’s not including the $2.75 a share in dividends the ASX 200 energy stock delivered over the year.

The post ASX 200 energy stock Ampol charging higher on record 2023 sales appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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