Tag: Motley Fool

The Tabcorp Holdings Ltd (ASX: TAH) share price is climbing today amid record growth in its lotteries business.

Tabcorp shares are swapping hands at $5.43 apiece, a 5.44% gain. In comparison, the S&P/ASX 200 Index (ASX: XJO) is rising less than 1%.

Let’s take a look at what the gambling entertainment company reported today.

Tabcorp share price in the green on half-year results

Highlights of the company’s half-year (H1 FY22) results include:

• Group revenue of $2,934 million, up 2.2% on previous corresponding period (PCP) of H1 FY21
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 5.5% on PCP to $529 million
• Statutory net profit after tax (NPAT) of $175 million, down 5.4%
• NPAT before significant items of $187 million, down 9.7%
• Interim dividend of 6.5 cents per share, down 13.3% on PCP. This is a payment ratio of 77% of NPAT before significant items.

What else happened in the half?

Lotteries and Keno revenue grew by 10.9% on the PCP to $1,784 million, while EBITDA grew 15.1% to $358 million. This was a record result for Tabcorp.

Active registered customers in this business grew by 5% to $3.88 million. The digital share of lotteries turnover grew to 36.7%, a 4.6% improvement on PCP. Saturday Lotto turnover also surged 16%. Keno revenue fell 9.8% due to the impact of COVID-19 lockdowns.

Wagering and Media revenue fell 9.8% to $1,073 million, while EBITDA dropped 34.8% to $148 million. Revenue was “heavily impacted” by retail shutdowns in NSW with 102 lost days in city venues and 74 lost days in regional NSW. Once venues reopened in 2022, growth and performance improved.

Active TAB users in Q2 FY22 grew 7,000 from the PCP to 641,000.

Finally, gaming services revenues surged 6.8% to $78 million, while EBITDA fell 4.5% to $21 million. Revenues were impacted by COVID-19 given the significant fee relief provided to customers. Gaming Services returned to a full fee model on 1 December.

Management commentary

Speaking on the results helping to fuel the Tabcorp share price today, managing director and CEO David Attenborough said:

The record result from the Lotteries and Keno business again showcased the broad appeal of the business’ much-loved products and brands, and the success of its omni-channel strategy.

While the wagering and media business was significantly impacted by the retail lockdowns imposed in NSW and Victoria, its performance across all channels improved once restrictions were lifted.

Gaming Services maintained its ethos of supporting its licensed venue partners in challenging times and provided significant fee relief to customers whose trade was impacted by COVID-19 restrictions.

As we have throughout the pandemic, our focus was on managing the operational and financial impacts on our businesses, as well as prioritising our people’s wellbeing and supporting the recovery of our business partners.

What’s next

Tabcorp is working on growth initiatives across the company. A new TAB app will be launched in 2022, while improvements to Oz Lotto are also on the way.

The demerger of the Lotteries and Keno business is on track to take place in June 2022 subject to approvals. This business would be known as The Lottery Corporation. Planning and execution on this demerger is making good progress.

Tabcorp is targeting $20 to $25 million in EBIT savings from its optimisation program in FY22.

Tabcorp share price summary

The Tabcorp share price has surged nearly 23% in the past year, while it is up around 8% year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned around 6% over the past year.

Tabcorp has a market capitalisation of roughly $12 billion based on today’s share price.

The post Winning ticket: Tabcorp (ASX:TAH) share price jumps 5% on record lotteries result appeared first on The Motley Fool Australia.

More reading

• Morgans names 4 more of the best ASX shares to buy in February

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

from The Motley Fool Australia https://ift.tt/DvUsc95

Shares in coal operator Whitehaven Coal Ltd (ASX:WHC) are falling this morning, down 6.5% to $2.87 following the release of the company’s half-yearly results.

Whitehaven share price softens despite record profitability

The six months ending 31 December 2021 were hallmarked by several investment highlights, including:

• Record first-half year EBITDA of $632.6 million and net profit after tax (NPAT) of $340.5 million
• Average achieved coal price for H1 FY22 of A$202/tonne
• Cash generated from operations of $567.4 million
• EBITDA margin of 55% on own coal sales (A$102/tonne versus A$5/tonne last year)
• Net debt of $403.4m as at 31 December 2021, which is 50% lower than at 30 June 2021
• Board has declared an interim unfranked dividend of 8 cents per share
• Board will undertake an on-market share buyback program of up to 10% of issued shares, capped at $400m
• FY22 guidance remains unchanged.

What else happened this half for Whitehaven?

It was an all-green year for Whitehaven and its profitability. Revenue grew 106% year on year (YoY) to $1.44 billion, and operating leverage enabled a record EBITDA of $632 million – up 1,600% YoY.

This carried through to another NPAT record and a 934% leap in cash from operations from the year prior.

Whitehaven notes it is on track to repay in full its senior bank facility shortly. It will be in a positive net cash position in March 2022 at its current run rate.

Gearing was subsequently reduced by 48% but this was offset by a 19% increase in the realised unit cost to $83/tonne.

Investors might recall the company agreed to acquire the 1% Private Royalty over the Narrabri Coal mine from Anglo Pacific Group plc.

Whitehaven said: “The consideration of US$26.6 million, plus contingent revenue participation payments, is payable over five years to 31 December 2026. During the half, the company made the first payment US$4.4 million”.

Management commentary

Speaking on the announcement, Whitehaven CEO Paul Flynn said:

High prices for thermal coal have driven record half year earnings and cash flows. Our rate of cash generation means debt is now all but paid down and affords considerable flexibility in regards to capital management. The Board’s decision to restart dividends and implement an on-market share buyback delivers value for our shareholders both today, and over the longer term. In a world where access to reliable and affordable energy is more important than ever, our investment thesis is a compelling one.

What’s next for Whitehaven?

According to Whitehaven: “The ongoing energy shortage is reflected in the prices being offered for spot physical gC NEWC coal deliveries where prices are approaching US$300/tonne in the first quarter of CY22”.

As such, the company expects demand for seaborne thermal coal to “remain strong in CY22 and the supply side response to those high prices to remain muted”.

“Coal prices are expected to be well supported over CY22”, Whitehaven concluded.

Whitehaven share price snapshot

In the last 12 months, the Whitehaven share price has jumped 90% and is up 8% this year to date.

The share price is gaining considerable support in February and is up 11.5% for the month already.

The post Another record: Whitehaven (ASX:WHC) share price sinks 6% despite NPAT soaring to new heights appeared first on The Motley Fool Australia.

More reading

• Are ASX mining shares the place to be right now?
• 3 ASX 200 shares tipped to shine bright in 2022
• Why are ASX 200 energy shares tumbling on Tuesday?
• Why Allkem, Nuix, Whitehaven Coal, and Zip shares are sinking today
• Whitehaven (ASX:WHC) share price plunges 8% following ‘La Nina and COVID impacts’

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

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

The Data#3 Limited (ASX: DTL) share price is edging higher on Thursday. This comes after the company released its half-year results for the 2022 financial year.

At the time of writing, the business technology solutions company’s shares are fetching for $5.47, up 0.92%.

Data#3 share price advances on half-year result

The Data#3 share price is in the green today after the company delivered its result for the six months ending 31 December 2021. Here are some of the key highlights:

• Revenue of $999.3 million, up 16% (H1 FY21 $856.74 million)
• Earnings before interest, tax, depreciation and amortisation (EBITA) of $19.11 million, up 35% (H1 FY21 $14.06 million)
• Net profit after tax (NPAT) of $12.35 million, up 31.7% (H1 FY21 $9.38 million)
• Earnings Per Share (EPS) of 8.01 cents, up 31.5% (H1 FY21 6.09 per share)
• Fully franked interim dividend of 7.25 cents per share, up 31.8% (H1 FY21 5.50 cents).

What happened in FY22 for Data#3?

Data#3 highlighted that the growing demand for its solutions led to strong revenue and earnings growth. This included a surge in public cloud revenues, up 34.8% to $466.7 million, as major organisations and government departments transferred to a cloud-based infrastructure.

Recurring revenues grew to reach approximately 65% of total revenue, up from 62% in the previous corresponding period. Contracts with government and large corporate customers attributed to the positive result.

The consolidated net profit before tax (NPBT) increased by 33% to $18.5 million, slightly ahead of the guidance provided on 18 January 2022.

While the FY21 backlog caused by the global shortage of computer chips and integrated circuits provided a fast start to FY22, the group experienced a similar backlog at the end of December.

Data#3 advised that it has adapted to the continued supply chain shortages and delays, with early ordering and contingency planning now being widely adopted.

What did management say?

Data#3 CEO and managing director, Laurence Baynham touched on the result, saying:

We are very pleased with the strong first half performance, which reflects solid contributions from each of our business units and regions. This was underpinned by diligent execution of our strategy as we grew our software and services businesses and recurring revenue base.

We maintained strong levels of service to our large, long-term customer base while further strengthening key supplier relationships through our highly experienced and committed team.

What’s the outlook for Data#3?

Looking ahead, Data#3 revealed that it’s well-positioned to capitalise on large-scale digital transformation projects, particularly in software and services.

While the Australian IT market is predicted to grow at a record rate in 2022, the company will seek to expand its services businesses.

The ongoing supply constraints caused by the global shortage of computer chips and integrated circuits is expected to run into FY23. However, the industry has adapted to these longer lead times, thereby minimising the impact.

Data#3 stated that while the robust performance is continuing in the second-half, no guidance could be given for FY22. This is due to pandemic-related uncertainties which remain.

Nonetheless, the company did note that it is forecasting a sales peak in May and June, and a higher profit skew in the second half.

The post Interim dividend up 32%: Data#3 (ASX:DTL) share price edges higher on ‘strong first half performance’ appeared first on The Motley Fool Australia.

More reading

• Why Allkem, BrainChip, Data#3, and JB Hi-Fi shares are charging higher
• Why the Data#3 (ASX:DTL) share price is rocketing 11% today?

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.

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

The Woodside Petroleum Limited (ASX: WPL) share price is pushing higher on Thursday following the release of its full year results.

In early trade, the energy producer’s shares were up as much as 4% to a 52-week high of $27.66.

Woodside share price hits 52-week high amid strong profit growth

• Annual sales volume rose 4.5% to 111.6 MMboe
• Realised price surged 86% to US$60.30 per boe
• Operating revenue up 93% to US$6,962 million
• Operating cash flow jumped 105% to US$3,792 million
• Underlying net profit after tax jumped 262% to US$1,620 million
• Fully franked final dividend increased 255% to 105 US cents

What happened in FY 2021?

FY 2021 was all about rising oil and gas prices. Thanks to an 86% increase in its realised price to US$60.30 per boe and a modest 4.5% lift in annual sales volume, Woodside almost doubled its operating revenue to US$6,962 million.

And with the company’s unit production cost only rising 10% to US$5.30 per boe, Woodside’s profits grew at an even quicker rate over the period. The company reported a 262% jump in underlying net profit after tax to US$1,620 million.

This, and its strong cash flow generation, allowed the Woodside Board to declare a US$1.05 per share fully franked final dividend. This was up 255% over the prior corresponding period and brought its full year dividend to US$1.35 per share.

Management commentary

Woodside’s CEO, Meg O’Neill, was pleased with the year and is optimistic on the future. Particularly given the company’s merger with the petroleum assets of BHP Group Ltd (ASX: BHP).

She said: “Woodside ended 2021 in a strong financial position. Our higher underlying full-year profit of $1,620 million and free cash flow of $851 million reflected our consistent operational performance, the improved price environment for our products and the proactive decisions made to manage our sales portfolio.”

“Our agreement to merge with BHP‘s petroleum business is expected to create a global energy company which would have the cash generation and balance sheet strength to deliver shareholder returns through economic cycles, opportunities to realise ongoing synergies and greater capacity to participate in the energy transition.”

Outlook

Management has provided guidance for FY 2022, which excludes the impacts of the impending BHP merger. It expects production in FY 2022 to increase 1% to 7.5% to between 92MMboe and 98MMboe.

As for its investments, Woodside’s investment expenditure guidance is US$3,800 million to US$4,200 million. This excludes the benefit of Global Infrastructure Partners’ additional contribution of approximately $822 million for Pluto Train 2 and excludes any impact from the proposed merger.

The post Woodside (ASX:WPL) share price hits 52-week high after tripling full year earnings appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• These are some of the top performing ASX 200 value shares of the past year
• Here’s why the Woodside (ASX:WPL) share price just cracked a new 52-week high

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

from The Motley Fool Australia https://ift.tt/O5NiGjW

The Origin Energy Ltd (ASX: ORG) share price is in focus today following the release of the company’s half-year results for FY22.

Upon opening, the company’s shares have slipped 5.9% to $5.74.

Origin share price dips as losses continue through first half

• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of $1,099 million, down 4.8%
• Free cash flow for the half fell 46% to $355 million
• Underlying net profit after tax (NPAT) up 18% on prior corresponding period to $268 million
• Statutory net loss after tax narrows to $131 million, up from $183 million loss
• Unfranked interim dividend of 12.5 cents per share, staying flat from HY2021
• Customer accounts up 47,000 to 4.313 million.

What else happened in the first half?

Origin had a mixed bag of events throughout the first half. However, a dominant force on the company’s results was continued economic disruptions from COVID-19. In addition, the energy market is being challenged by hindered demand and tariff pressure.

Meanwhile, Origin’s interest in Australia Pacific LNG (APLNG) performed solidly. During the half, APLNG achieved record revenue as commodity prices ran hot. In turn, the natural gas producer handed down a cash distribution of $555 million. However, this doesn’t appear to be enough to keep the Origin Energy share price out of the red today.

Furthermore, the company’s partial sale of APLNG weighed on Origin’s statutory results. According to the release, the $131 million loss reflects a one-off impairment and net capital gains tax expense. The energy giant agreed to sell the 10% stake for $2.12 billion in October 2021.

Another notable item in today’s announcement is Origin Energy’s proposed plans to accelerate its exit from coal-fired power generation. In a separate release, Origin informed shareholders it plans to retire Eraring Power Station early in August 2025. The company intends to replace the plant with a large-scale battery.

The company said the changing energy market means traditional baseload power stations are less viable.

What did management say?

Origin CEO, Frank Calabria, commented on the results, saying:

Superior field performance and an ability to keep costs low, has put the business in a strong position to benefit from the buoyant commodities market. Australia Pacific LNG is expected to distribute more than $1.1 billion in cash to Origin for the full-year, net of oil hedging.

With regard to the company’s investment in UK-based Octopus Energy, Calabria said:

More broadly, Origin’s strategic investment in Octopus continues to outperform, with a tripling in the company’s valuation to more than £3 billion. Octopus has now established a retail presence in seven of the world’s largest deregulated energy markets and has increased its UK energy customer numbers by 2.7 million in the past 15 months.

What’s next?

The future of the Origin Energy share price rests on what is next for the company. Fortunately for shareholders, Origin now expects its underlying EBITDA for FY22 to be higher than previously estimated. The latest forecast suggests EBITDA could be between $1,950 million to $2,250 million.

On the energy markets front, the company is sticking with FY22 guidance of $50 million to $600 million in underlying EBITDA. Meanwhile, the uplift is suspected to come from its integrated gas division, as oil prices remain elevated.

Finally, Origin shareholders can expect to receive their interim dividend on 25 March.

Origin share price recap

Origin Energy has been relishing higher oil prices this year. Thanks to its continued interest in APLNG, the company can capture the gains in multi-year high prices per barrel.

The Origin Energy share price is up 8.7% since the beginning of the year. This takes the company’s gain to 26.7% over the last 12 months. Compared to the S&P/ASX 200 Index (ASX: XJO), this represents an outperformance of 20.7% in a one-year timeframe.

The post Origin (ASX:ORG) share price slides 5% following another half of losses appeared first on The Motley Fool Australia.

More reading

• Power surge! These 2 ASX 200 utilities shares are storming higher today
• Origin (ASX:ORG) share price gains despite $200 million financial hit
• Both have had a bumper start to the year. But which is the better buy, AGL or Origin (ASX:ORG) shares?
• These 3 ASX energy shares just hit 52-week highs
• Origin (ASX:ORG) share price hits 52-week high before slumping. What’s going on?

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

from The Motley Fool Australia https://ift.tt/i6RtX5e

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 Meta Platforms (NASDAQ: FB) slid Wednesday morning after it was reported late Tuesday that the company is paying $90 million to settle a data-privacy-related class-action lawsuit. 

The tech stock was down by 2.9% as of 12:19 p.m. ET. 

So what 

For Meta, $90 million isn’t exactly a lot of money — its revenue in the fourth quarter alone was $33.7 billion. But the settlement is significant in that it adds one more dark spot to the company’s already tarnished reputation. 

This particular class-action lawsuit, which is a decade old, alleged that Facebook continued to track its users online even after they had logged out of the social media platform. 

Another notable lawsuit the company put behind it last year was also focused on user privacy. That suit, which Meta agreed to pay $650 million to settle, alleged that Facebook’s tagging feature violated Illinois state law. 

Then, just two days ago, Texas Attorney General Ken Paxton said that his state was suing Meta, alleging that Facebook had collected biometric data about users without their consent.

Now what 

Back in November, Facebook shut down its facial-recognition system, which it had used to scan images and videos, and identify the people in them, saying that “… the many specific instances where facial recognition can be helpful need to be weighed against growing concerns about the use of this technology as a whole.”  

But based on the recent lawsuit settlements and the new lawsuit filings, it appears that Facebook’s parent company isn’t finished dealing with its troubles on the privacy front. Those could continue to weigh down Meta’s stock — at least in the short term — as the company tries to transition away from its social media roots and focus on its metaverse ambitions. 

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

The post Here’s why Meta Platforms stock is down today appeared first on The Motley Fool Australia.

More reading

• Why Meta Platforms stock just jumped higher
• What exactly is the metaverse and how are investors making money from it?
• The week ahead: Confidence, ASX earnings, tech in focus. Scott Phillips on Nine’s Late News
• Meta’s metaverse losses pour cold water on these 3 cryptocurrencies
• Meta Platforms’ plummeting stock: Is it a buy?

Chris Neiger has no position in any of the stocks mentioned. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Meta Platforms, Inc. The Motley Fool Australia has recommended Meta Platforms, Inc. 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.

from The Motley Fool Australia https://ift.tt/KfSy3bM

The Transurban Group (ASX: TCL) share price is edging higher in early trade, up 0.5%.

Transurban shares closed yesterday at $12.88 and are currently trading for $12.95 per share.

Below we take a look at the ASX toll road developer and operator’s financial results for the half year ending 31 December (1H22).

Transurban share price edges up despite earnings dip

• Total revenue (proportional) of $1.22 billion, down 0.4% year-on-year
• Proportional earnings before interest, taxes, depreciation and amortisation (EBITDA) of $805 million, down 4.1% from 1H21
• Loss from continuing and discontinued operations of $106 million, down from $448 million loss in the prior corresponding half year.
• Free cash (including capital releases) declined 1.6% to $459 million
• Dividend of 15 cents per share (cps), unfranked, the same as in 1H21

What else happened during the financial half year?

A 4.8% drop in average daily traffic across its portfolio continued to throw up headwinds for the Transurban share price during the half year.

The company said COVID-19 restrictions put into place by governments reduced vehicle numbers on its roads. But numbers picked up in the second quarter as these restrictions eased.

Transurban increased its proportional ownership in WestConnex to 50% “alongside strategically aligned partners”. This extended the company’s weighted average concession life to roughly 30 years.

In other major developments during the half year, Transurban reached an agreement over “long standing disputes” surrounding Victoria’s West Gate Tunnel Project. Under the reworked agreement, the project is now expected to be completed towards the end of 2025. All parties will pitch in extra funding. Transurban reported that its contribution consists of a”$1.7 billion contribution to the cost of the D&C contract plus approximately $300 million in additional costs including insurance and project management costs”.

The company said its 15 cps dividend was entirely covered by its half year free cash. The dividend will be paid on 22 February and the Distribution Reinvestment Plan (DRP) is active.

What did management say?

Commenting on the results, Transurban CEO Scott Charlton said:

The progress we have made during the half allows us to commence 2022 with a focus on our operations and the delivery of the pipeline of development and enhancement projects across our markets…

We are investing in transportation networks that will be in operation for decades. In the past 10 years we have expanded from seven to 21 assets across five markets, resulting in an average concession life of around 30 years.

What’s next?

Transurban said it expects FY22 dividends to be in line with its free cash, excluding capital releases.

The company has a large pipeline of opportunities progressing in its core market of North America and Australia, which could be helping support the Transurban share price moves today.

Looking ahead, Charlton said, “We continue to manage our balance sheet to support our investment in future growth and distributions to our security holders.”

Atop the FY22 dividend payment, Charlton said, “We are likely to use a portion of the additional WestConnex Capital Releases resulting from the acquisition to minimise dilution associated with the equity raise.”

Transurban share price snapshot

The Transurban share price is down 8% so far in 2022, trailing the 3% year-to-date loss posted by the S&P/ASX 200 Index (ASX: XJO).

The post Earnings dip fails to derail Transurban (ASX:TCL) share price today appeared first on The Motley Fool Australia.

More reading

• Are ASX growth shares still worth holding in 2022?
• Own Transurban (ASX:TCL) shares? Here’s what to watch when the company reports this week
• 2 growing ASX dividend shares analysts rate as buys
• Here’s why Transurban (ASX:TCL) shares could be in for some investor TLC
• Morgans names 4 more of the best ASX shares to buy in February

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

from The Motley Fool Australia https://ift.tt/Ed39m7r

The South32 Ltd (ASX: S32) share price is in the green in early trading today following the release of the company’s financial results for the half year ended 31 December 2021.

At the time of writing, the ASX miner’s shares are trading at $4.55 apiece, up 2.25% on yesterday’s closing price.

South32 share price climbs as margins lift off

Highlights from the H1 FY22 results include:

• Group’s statutory profit after tax increased by US$979 million to US$1.032 billion in H1 FY22
• Strong production results across a number of operations and high operating leverage translated into an improved operating margin of 44% (H1 FY21: 24%)
• Underlying earnings increased by US$868 million to more than US$1 billion
• Generated free cash flow from operations, including distributions from manganese EAI, of US$942 million
• Finished the period with net cash of US$975 million
• US$405 million fully franked interim dividend announced, 40% of underlying earnings
• US$60 million allocated as a part of on-market share buyback program

What else happened this half for South32?

The company also noted its Worsley Alumina site continued to operate above nameplate capacity. Brazil Alumina, on the other hand, was a key takeout and achieved record production in Q2 FY22.

Meanwhile, its Cannington assets continued to perform strongly. Production guidance was revised higher by 5% for FY22 “as the operation prepares to transition to 100% truck haulage in Q4 FY22”.

Additionally, the group’s Cerro Matoso site in Colombia achieved a 26% spike in payable nickel.

Aside from that, South Africa Manganese came in with an all-time production record during Q2 FY22. This was underscored by more deliveries of premium material to market.

Operationally the company also saw “strong production results across a number of operations” that resulted in “high operating leverage”. Consequently, the group’s operating margin improved by 22 percentage points to 44%.

This result was in part helped by controllable costs sitting less than 3% of the group’s cost base, “despite significant external pressure”.

Management commentary

Speaking on the announcement boosting the South32 share price today, CEO Graham Kerr said:

We achieved a record operating margin of 44% and a significant improvement in our underlying earnings to US$1 billion in the half, following a broad recovery in commodity prices, while also making substantial progress reshaping our portfolio.

A number of our operations delivered strong production results during the half. We achieved record quarterly production at Brazil Alumina and South Africa Manganese during the period, while Worsley Alumina continued to operate above nameplate capacity.

Production guidance at Cannington has been revised higher by five per cent as the operation prepares to transition to 100 per cent truck haulage in the June 2022 quarter, which is expected to bring forward access to higher grade material.

This performance, together with our strong financial position, is enabling us to invest in our business, grow base metals production and substantially increase our returns to shareholders, with the board resolving to pay a record US$405 million fully franked ordinary dividend in respect of the period. The board has also resolved to expand our capital management program by US$110M to US$2.1B, leaving US$302M to be returned.

What’s next for South32?

Guidance was unchanged from previous estimates in all areas except Australian Manganese, Illawara Metallurgical Coal and Cannington.

For Cannington, South revised guidance upward by 5% and forecasts 2,750kdmt of ore processed after reinstating its estimates on zinc, silver and lead production.

For the other two sites, the company downgraded guidance by 9% and 7% respectively, as a reflection of COVID-19 impacts.

The company also expects to produce 5kt of alumina at its Brazil Alumina operations by FY22, jumping to 140kt the following year.

South32 share price snapshot

In the last 12 months the South32 share price has jumped more than 64%. It has also climbed 11% this year to date.

Across all time frames South32 is in the green, more than can be said for the benchmark indices in the same time.

The post South32 (ASX:S32) share price jumps as profit soars appeared first on The Motley Fool Australia.

More reading

• Top broker tips South32 (ASX:S32) to deliver 637% jump in half year earnings
• Analysts tip these ASX shares to offer huge fully franked dividend yields
• Here are the 3 most heavily traded ASX 200 shares this Friday
• These 3 ASX energy shares just hit 52-week highs
• Why is the South32 (ASX:S32) share price surging to all-time highs today?

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

from The Motley Fool Australia https://ift.tt/6QFS5rb

The Goodman Group (ASX: GMG) share price is charging higher on Thursday morning following the release of its half year results.

In early trade, the integrated property company’s shares are up 4.5% to $25.10.

Goodman share price up on strong half year results

• Total assets under management (AUM) up 32% to $68.2 billion
• Occupancy remains high at 98.4%
• Like-for-like net property income growth of 3.4%
• Operating profit up 28% to $786.2 million
• Operating earnings per share up 27% to 41.9 cents
• Development work in progress up 51% to $12.7 billion across 81 projects
• FY 2022 guidance upgraded

What happened during the first half?

For the six months ended 31 December, Goodman was on form again and delivered a 28% increase in operating profit to $786.2 million.

This was driven by like-for-like net property income growth of 3.4% and a 32% jump in AUM to $68.2 billion. The latter resulted in an 18% increase in management earnings to $258.2 million. Pleasingly, management expects further AUM growth in the coming years due to continued development activity and revaluations.

Management commentary

Goodman’s Chief Executive Officer, Greg Goodman, commented: “The Group’s long-term focus on infill locations is underpinning our strong performance, and driving the volume and scale of the $12.7 billion workbook.”

“It’s also increasing the value of our projects. The average value of our development WIP now exceeds $3,700 per square metre and reflects the prime location, expected growth in rents and consequently better cap rates, for these properties. Goodman continues to grow organically through development activity. This is increasingly reflected in the investment and management business performance as we focus on delivering sustainable opportunities for our customers and investors,” Mr Goodman added.

Outlook

In light of Goodman’s strong performance during the first half, management has upgraded its full year guidance.

It now expects operating earnings growth to be 20% in FY 2022. This compares to prior (also upgraded) guidance of growth in excess of 15%.

However, management has elected to reaffirm its distribution guidance at 30 cents per share rather than upgrade it. This is because it sees attractive opportunities to deploy retained earnings into its development and investment inventory.

Commenting on the company’s outlook, Greg Goodman said: “Our strategy to provide essential infrastructure for the digital economy is delivering. The business is performing strongly across all segments, including our development projects, leasing success, rental growth, significant valuation uplift and the strong performance of our Partnerships.”

“In addition, COVID related disruptions in FY22 have been managed to have less impact on the full year projections than we had initially assumed. The operating outlook for the business is strong and gives us confidence for the remainder of this year. Consequently, we are upgrading our market guidance for FY22, with Operating EPS growth projected to be 20%.”

The post Goodman (ASX:GMG) share price charges higher on results and guidance upgrade appeared first on The Motley Fool Australia.

More reading

• Is the Goodman Group (ASX:GMG) share price a bargain after tumbling 15% in 2022?
• Top brokers say there are still ASX 200 growth shares with massive upside in 2022
• 3 buy-rated ASX 200 shares with plenty of upside potential
• How are ASX Real Estate Investment Trusts (REITs) performing in 2022?
• 2 highly rated blue chip ASX 200 shares to buy

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

from The Motley Fool Australia https://ift.tt/dTQw5om

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

Today’s been a relatively muted day in the crypto world. However, certain tokens are seeing outsize moves. One such token that’s worth taking a look at today is Neo (CRYPTO: NEO). As of 2:40 p.m. ET, this token had surged 11.3% higher to move into 59th place in the cryptocurrency market cap rankings. 

Among the key drivers taking this token on a wild ride higher today was news of Neo’s first-ever monthly tech report. This report highlighted progress made on several roadmap items the Neo developer team has been working on for some time. These included a range of bug fixes, as well as new resources and support for developers utilizing Neo to incorporate smart contracts into decentralized applications. 

Additionally, published “gas burn” data directly from the Neo team shows signifiant recent spikes, specifically one at 3 a.m. ET. On the Neo network, Neo tokens are the governance tokens tied to the voting rights for this network, while Gas tokens are the “fuel” that allow for transactions to take place on the network. System fees are burned, with network fees redistributed to census nodes. Higher gas burn rates suggest that transaction volumes spiked over a given period of time.

So what

Neo is a China-based blockchain, often regarded as the first ever from China, launched in 2014. Accordingly, it’s not surprising to see large spikes in what are after-hours trading periods in North America, given this time difference. However, the recent gas burn data provided by Neo does suggest that activity could be picking up on the network. Given the geopolitical concerns coming out of China, this is a bullish factor investors seem to like today.

Additionally, the technical update provided by the Neo team has provided some significant detail on what’s going on behind the scenes. Those with sophisticated knowledge of the inner workings of this network appear to like what they see. Like any investment, more transparency is usually a good thing. This appears to be the case with Neo today.

Now what

Neo is certainly an interesting blockchain network to take a look at. For those bullish on continued global growth in the crypto space, this may be a token to put on the watch list. Indeed, Neo’s rise of more than 11% at a time when the overall crypto market was up less than 1% signals investors believe there’s some real near-term upside potential with this token.

Like all cryptocurrencies, investors ought to take caution and do their due diligence before diving into any token. That said, Neo is one project I intend to look deeper into following today’s news. 

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

The post This cryptocurrency surged 11% higher today, pole-vaulting into the top 60 appeared first on The Motley Fool Australia.

More reading

• Goodman (ASX:GMG) share price charges higher on results and guidance upgrade
• Wesfarmers (ASX:WES) share price on watch after ‘most disrupted period’ since COVID onset
• Why are ASX investors flocking to cash ETFs?
• Hold the phone! Telstra (ASX:TLS) delivers solid underlying growth and declares 8cps dividend
• 3 ASX shares to buy before the market rockets up again

Chris MacDonald 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.

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

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