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ASX dividend shares might be the way to grow income for investors who are looking to get more cashflow from their money. 

It’s the job of brokers to find businesses that might be opportunities on the share market. Some of those businesses currently pay a relatively high dividend yield.

Here are two that are liked by brokers:

Charter Hall Long WALE REIT (ASX: CLW)

This is one of the larger real estate investment trusts (REITs) on the ASX with a market capitalisation of just over $3 billion according to the ASX.

The aim of this REIT is to provide investors with stable and secure income, with the potential for both income and capital growth through an exposure to long weighted average lease expiry (WALE) properties.

The ASX dividend share is focused on owning assets that are predominately leased to tenants with strong covenants on long-term leases. This REIT is managed by Charter Hall Group (ASX: CHC).

Charter Hall Long WALE REIT recently had 458 properties, or 92% of the portfolio, independently valued for 30 June 2021. That resulted in a $373.4 million, or 7.6%, uplift on the prior book values. That saw the portfolio average capitalisation rate compress 38 basis points from 5.14% to 4.76%.

This update from the ASX dividend share saw the pro forma net tangible assets (NTA) per unit increase 12.8% from $4.65 to $5.24. It currently has a WALE of around 14 years.

Charter Hall Long WALE REIT is rated as a buy by the broker Citi because of its conservative guidance and strong rental income. The price target is $5.30. At the current share price, Citi thinks the dividend yield will be 6% for FY21 and 6.25% for FY22.

Waypoint REIT Ltd (ASX: WPR)

This is the largest REIT that gives pure exposure to fuel and convenience retail properties with a network across all Australian states and mainland territories.

Waypoint REIT’s stated objective is to maximise the long-term income and capital returns from its ownership of the portfolio for the benefit of all securityholders.

There is rental growth built into its contracts, predominately with tenant Viva Energy Group Ltd (ASX: VEA) and sub-tenant Coles Group Ltd (ASX: COL) with Coles Express.

It has an occupancy rate of 99.9%, a WALE of 10.8 years, with most of them (over 90%) having triple net leases.

The ASX dividend share is achieving attractive organic rental growth underpinned by a weighted average rent review of 2.9%. There is further growth potential through acquisitions and development.

It’s currently rated as a buy by Morgans, with a price target of $2.92. Morgans is expecting the FY21 and FY22 distributions to be 15.7 cents and 16.4 cents, equating to a distribution yield of 5.9% this financial year and 6.2% next financial year.

The post Brokers rate these 2 ASX dividend shares as buys appeared first on The Motley Fool Australia.

More reading

• Charter Hall REIT (ASX:CLW) share price flat on notes issuance
• Got cash to invest for dividends? Here are 2 ASX shares that could be buys
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• Why the Charter Hall REIT (ASX:CLW) share price is frozen

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Isentia Group Ltd (ASX: ISD) share price has been one of the best performers on the Australian share market on Tuesday.

In morning trade, the media intelligence services provider’s shares are up over 150% to 17.5 cents.

Why is the Isentia share price rocketing higher?

Investors have been bidding the Isentia share price higher today after it announced that it has entered into a binding scheme implementation deed with AIM-listed Access Intelligence.

Access Intelligence is an UK-based technology led company delivering SaaS products that address the fundamental business needs of customers in the public relations, marketing, and communications industries.

According to the release, under the terms of the scheme implementation deed, Access Intelligence will acquire 100% of the shares in Isentia that it does not already own by way of a scheme of arrangement. This scheme remains subject to shareholder and court approval but is being recommended by the Isentia board.

Access Intelligence has offered 17.5 cents per share in cash, which implies an enterprise value of $67 million for Isentia. This represents a 157% premium to its last close price and a 39% premium to the 12-month volume weighted average price of the Isentia share price.

“Compelling offer”

Isentia directors believe Access Intelligence has made a compelling offer for a number of reasons.

This includes an attractive premium, certainty of value, and limited conditionality. In respect to the latter, the company notes that the offer is subject only to customary conditions and not financing or due diligence.

Isentia Chairman, Doug Snedden, said: “The Scheme is an attractive transaction which provides an all-cash consideration for Isentia shareholders. The Isentia Board has unanimously concluded that the Scheme is in the best interests of shareholders. The price represents a significant premium to the current trading price.”

“Access Intelligence’s offer provides Isentia shareholders with certainty of value and the opportunity to realise their investment in full for cash. Isentia’s operations will also benefit from Access Intelligence’s intention to repay senior debt.”

This sentiment was echoed by the company’s CEO, Ed Harrison. He said: “Access Intelligence has a strong track record in delivering successful products to PR and comms professionals, not least through their powerful social media platform, Pulsar.”

“Bringing the companies together will give Isentia’s customers access to a broader suite of products. Isentia will continue to invest in its existing portfolio of products including the upcoming launch of the new Isentia platform and completion of the move to real-time broadcast monitoring. For the Isentia team this represents the opportunity to be part of a wider global organisation,” he concluded.

The Isentia share price last traded above the offer price in October last year. Since then it has been on a downward trajectory, hitting a record low of 6.6 cents recently.

The post Why the Isentia (ASX:ISD) share price is rocketing 150% higher today appeared first on The Motley Fool Australia.

More reading

• Nuix (ASX:NXL) share price charges higher after announcing CEO and CFO exits
• Bitcoin stocks soar following Elon Musk’s Tesla announcement
• Crown (ASX:CWN) share price lower despite Oaktree proposal
• This ASX darling’s price is now ‘most attractive in 5 years’: analyst
• Why the Euro Manganese (ASX:EMN) share price is rising 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 Bruce Jackson.

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The Nuix Ltd (ASX: NXL) share price is charging higher today after announcing major changes in its leadership.

At the time of writing, the investigative analytics and intelligence software provider’s shares are up 4% to $2.76.

Why is the Nuix share price rising?

This morning the embattled software company announced the exit of both its Chief Executive Officer (CEO) and its Chief Financial Officer (CFO).

Traditionally, such major changes at the top will lead to selling by investors. However, with Nuix performing so poorly since its IPO last year and downgrading its guidance multiple times, it appears as though the market is cheering on these changes on this occasion.

According to the release, CEO Rod Vawdrey has revealed that he intends to retire from the role. However, Mr Vawdrey will continue in the role while an international search is conducted for a new CEO to lead Nuix on the next phase of its journey and to allow for an orderly leadership transition.

Whereas the company’s CFO, Stephen Doyle, has had his employment terminated by mutual agreement with effect from 30 June. Nuix has revealed that Chad Barton will step in as interim CFO from Monday 21 June.

And while Mr Doyle retains no operational duties, he will be available in the coming weeks to work on an orderly handover of his responsibilities. A global search for a permanent CFO has been initiated by the company.

Management commentary

Commenting on the exit of Rod Vawdrey, Nuix Chair, Hon Jeff Bleich, said: “Rod’s decision reflects his deep commitment to Nuix and love for the company. Rod has agreed to remain at least through the announcement of end of year results, and throughout the process required to find the right replacement to ensure the smoothest possible transition.”

“Nuix is a great company with world leading technology, an extraordinary portfolio of clients, and an incredibly passionate and committed team of employees. We are confident that the pool of candidates will be a deep one and the Board is very focused on attracting the right individual to take on the role.”

Mr Vawdrey commented on the appointment of Chad Barton as interim CFO and appears to believe the company’s finances are in safe hands.

He said: “I am delighted that someone of Chad’s calibre and extensive listed company experience is joining Nuix as interim Chief Financial Officer. Chad brings deep capital market relationships and a strong understanding of financial reporting and systems. He will lead a committed and highly capable team of finance professionals.”

The Nuix share price is still down 68% since the start of the year.

The post Nuix (ASX:NXL) share price charges higher after announcing CEO and CFO exits appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia has recommended Nuix Pty 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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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

The price of popular cryptocurrency Bitcoin (CRYPTO: BTC) has gone back over $40,000 per coin following a comment made by Elon Musk on social media. Musk is the founder and CEO of electric vehicle company Tesla (NASDAQ: TSLA) and said his company will once again start accepting Bitcoin as a form of payment once certain renewable-energy criteria are met. Considering some blame Musk for the current Bitcoin bear market, it seems only fitting that it’s getting a boost from him today.

Stocks tied to Bitcoin are also getting a boost today. As of 12:30 p.m. EDT, Riot Blockchain (NASDAQ: RIOT) stock is up 21%, Bit Digital (NASDAQ: BTBT) is up 25%, and Marathon Digital Holdings (NASDAQ: MARA) is up 18%. Finally, shares of cryptocurrency fund Grayscale Digital Large Cap Fund (OTC: GDLC) are up 12%.

So what

The price of Bitcoin crashed in May after Musk said Tesla would no longer accept Bitcoin as a form of payment, citing concerns over lack of sustainable energy used in the mining process. At its high in May, Bitcoin was around $58,000. Following Musk’s comments, it plummeted to around $35,000. But in a social media post yesterday, Musk said that Tesla isn’t banning Bitcoin payments forever. First, the company needs to confirm around half of Bitcoin’s electricity comes from green sources. Second, the mining process needs to be trending greener in general.

It’s unclear how Tesla will confirm Bitcoin’s energy sources exactly. By some estimates, the blockchain network already far surpasses Musk’s 50% benchmark. For example, according to a December 2019 study from CoinShares Research, 73% of Bitcoin’s energy comes from renewable sources. However, the exact percentage is hotly debated. After all, not all miners disclose where they get their electricity.

This uncertainty has some calling for more transparency among Bitcoin miners. Therefore, some companies have voluntarily coalesced to form the Bitcoin Mining Council. These companies met for the first time on May 23. MicroStrategy is a founding member of the council, and its CEO Michael Saylor said on social media that the council will “standardize energy reporting.”

Riot Blockchain, Bit Digital, and Marathon Digital are all companies that mine Bitcoin, and they know how important this renewable energy issue is becoming for Bitcoin. For example, on June 8, Bit Digital provided a transcript of CEO Bryan Bullett’s presentation at the LD Micro Conference. There Bullett said, “As of April 2021, we estimated that we used a majority carbon-free energy, on an annualized weighted average basis, accounting for these seasonal migrations.” By “seasonal migrations” Bullett is referring to Bit Digital’s strategy of moving miners to places that may have cheaper, renewable energy at certain times of year.

Now what

Today’s news about Tesla and Bitcoin may send the price of Bitcoin higher only in the short term — it doesn’t seem fundamental to a cryptocurrency-investing thesis. Consider that during the short time Tesla was theoretically allowing Bitcoin as a method of payment, it doesn’t seem like anyone actually did it. And in reality it’s hard to see what the advantage would be for a consumer anyway. Bitcoin investors believe the value will continue to rise over time. Therefore, it behooves them to hold Bitcoin rather than spend it.

Comments today from billionaire Paul Tudor Jones are more fundamental to a long-term Bitcoin thesis. Jones appeared on CNBC today and said he wants 5% of his investments in Bitcoin. Jones cited concerns over inflation of the U.S. dollar and high stock valuations, but the implications are far reaching. If more people, companies, and even countries buy and hold Bitcoin as Jones and others suggest, that could create a surge in demand that drives the price higher in the long term.

A higher price for Bitcoin would obviously be good for companies like Marathon Digital, Riot Blockchain, and Bit Digital that directly operate in this space and even hold bitcoins on their balance sheets in some cases. But it would also be good for funds like Grayscale Digital Large Cap Fund — a diversified cryptocurrency fund that’s 69% invested in Bitcoin. 

If you decide to take Jones’ advice regarding Bitcoin, be mentally prepared for volatility. Even though Bitcoin’s market capitalization is roughly $750 billion, a simple social media post from a celebrity still amazingly has the power to send coins moving by 10% or more with ease. Expect many more headline-grabbing endorsers and detractors in the coming weeks and months, making for one choppy ride. That may be more than most investors can mentally handle with 5% of their portfolios. 

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

The post Bitcoin stocks soar following Elon Musk’s Tesla announcement appeared first on The Motley Fool Australia.

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Jon Quast owns shares of Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended MicroStrategy. 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.

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The Crown Resorts Ltd (ASX: CWN) share price is trading lower on Tuesday despite the release of an announcement.

At the time of writing, the casino and resorts operator’s shares are down 1% to $12.12.

What is happening?

This morning Crown revealed that Oaktree Capital Management has come back with an improved offer.

This follows its unsolicited, preliminary, non-binding and indicative proposal in April to provide a funding commitment of up to ~$3 billion to Crown via a structured instrument. The proceeds were to be used by Crown to buy-back some or all of the Crown shares which are held by James Packer’s Consolidated Press Holdings on a selective basis.

Today, Crown revealed that Oaktree has now revised its proposal and is offering a $3.1 billion facility consisting of two tranches. This comprises a $2 billion private term loan and $1.1 billion loan convertible into new shares to be issued by Crown. Once again, it proposes that the proceeds would be used to fund a selective buy back of Consolidated Press Holdings’ shareholding in Crown.

What are the terms?

Crown notes that the term of the proposed facility is seven years with a coupon of 6% per annum for the first two years and then 6.5% per annum for the remainder of the term.

In respect to the convertible component of the facility, it would give Oaktree the ability to convert the $1.1 billion tranche into new shares in Crown at a strike price of $13.00 in specified circumstances. This includes at any time after the first anniversary of the facility provided that the Crown share price is above $13.00 based on a 30-day volume weighted average price.

Furthermore, the number of new Crown shares which would be issued to Oaktree upon conversion would be capped so that Oaktree would hold 9.99% of the total number of Crown shares on issue. The remaining part of the convertible component would be cash settled by Crown.

What now?

The release explains that the Crown Board has not yet formed a view on the merits of the revised Oaktree proposal.

As a result, it has advised shareholders that they do not need to take any action in relation to the proposal at this stage. It also warned that there is no certainty that the proposal will result in a transaction.

Crown is also still considering a merger proposal from rival Star Entertainment Group Ltd (ASX: SGR).

The post Crown (ASX:CWN) share price lower despite Oaktree proposal appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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An ASX-listed company that’s been a long-time favourite among investors still has plenty of legs, according to one fund manager.

T Rowe Price Group Inc (NASDAQ: TROW) Australian equities head Randal Jenneke said Resmed CDI (ASX: RMD) stocks are now ripe for the picking.

“The valuation is now back to its most attractive level in 5 years,” he told a T Rowe Price webinar last week.

“The sleep business is about to start to improve. As the US economy [improves] and there’s a product cycle to come.”

Resmed is a maker of medical devices that aid respiratory issues, especially in the area of sleep apnoea.

The Resmed share price had already climbed 7.18% over the week to Friday’s market close. At the start of the month, it was 2% down for the year.

The business has given its shareholders a great deal of joy over the decades. The stock started at less than $1 at the turn of the millennia and has provided excellent annual returns, especially in the last dozen years.

An oldie but a goodie

Sage Capital portfolio manager Sean Fenton told The Motley Fool that Resmed’s an old favourite.

“In various guises, we’ve owned [it] for well over a decade,” he said in last week’s Ask A Fund Manager.

“It had a few blips here and there from quarter to quarter but generally did very well and continued to grow and lead its segment.”

Fenton agreed with Jenneke that there was more to come from the US company.

“There’s still growth in its target market of sleep apnoea and improving sleep outcomes,” he said.

“[The company has] invested more and more in informatics and getting closer to the customer, and they really embedded themselves into having insurance payers and employing technology and improving their product and rolling it out.”

According to Jenneke, the worst economic hurdles for growth stocks would be over this year.

“We see growth in inflation peaking in 2021,” he said.

“What that means is that when we get into the later part of 2021 and into 2022, we should expect the market leadership is probably going to start to change.”

At the time of writing, the Resmed share price is trading at $29.87, up 5.29%.

The post This ASX darling’s price is now ‘most attractive in 5 years’: analyst appeared first on The Motley Fool Australia.

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Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. 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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Euro Manganese Inc CDI (ASX: EMN) shares are climbing in early trade today. This comes after the company made an announcement about its decommissioned pilot plant.

At the time of writing, the Euro Manganese share price is up 1.71% to 59.5 cents.

According to the release, the company will restart its pilot plant after being approached by prospective customers.

Let’s take a closer look at the news from Euro Manganese this morning.

Restarting production at the pilot plant

The Euro Manganese share price is in the green today after the company announced it will be refurbishing its pilot plant to produce small samples of high-purity manganese.

The manganese samples will be given to potential customers interested in using the company’s products to make electric vehicle batteries.

Giving potential customers samples means battery makers can complete supply chain qualification tests on the company’s manganese.

Therefore, Euro Manganese hopes battery makers will be ready to order the high-purity manganese when the company’s demonstration plant begins operating. Production at the demonstration plant is planned to begin in early 2022.  

Euro Manganese’s pilot plant produced manganese in 2018 as part of the Chvaletice Manganese Project’s preliminary economic assessment.

According to the company, its pilot plant will produce samples of manganese by the final quarter of 2021. The plant will produce around 50kg of high-purity electrolytic manganese metal and 150kg of high-purity manganese sulphate monohydrate.

During the refurbishing and production process, the company will be working with Changsha Research Institute for Mining and Metallurgy (CRIMM). CRIMM operated the pilot plant in 2018.

CRIMM is also the lead contractor for Euro Manganese’s demonstration plant.

The company’s demonstration plant will recycle tailings material from a decommissioned mine in the Czech Republic to produce battery-grade manganese products. The demonstration plant will be using the same process as is planned for the company’s commercial plant, which is expected to be delivered by early 2025.

Commentary from management

Euro Manganese CEO Marco Romero said:

Demand for sustainably produced, battery-grade manganese is increasing rapidly and there simply isn’t enough production capacity in the world to meet it today.

New producers need to come on stream soon and undergo rigorous supply chain qualification of their products. The restart of our pilot plant will help us better service several prospective customers’ near-term objectives to pre-qualify new producers like us.

Euro Manganese share price snapshot

Euro Manganese shares have been performing well on the ASX lately.

Currently, the Euro Manganese share price is almost 50% higher than it was at the start of 2021. It has also gained a whopping 587% since this time last year.

The company has a market capitalisation of around $148 million, with approximately 371 million shares outstanding.

The post Why the Euro Manganese (ASX:EMN) share price is rising today appeared first on The Motley Fool Australia.

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

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The Sims Ltd (ASX: SGM) share price has been a strong performer on Tuesday.

In morning trade, the scrap metal company’s shares are up 6% to a 52-week high of $17.69.

Why is the Sims share price charging higher?

Investors have been bidding the Sims share price higher today following the release of a very positive trading update this morning.

According to the release, the company’s businesses performed particularly strongly during the third quarter and are expected to continue this excellent form through the fourth quarter.

This is being driven by solid proprietary intake volumes, which have remained at around 95% of FY 2019’s average monthly volumes. In addition to this, the company is benefiting from gross margin per tonne improvements due to higher scrap prices and good margin management, and a significant contribution from SA Recycling. The latter is being underpinned by high prices for zorba linked products, good intake volumes, and good margin management.

Earnings guidance upgraded

The sum of the above is a significant increase in its earnings guidance for FY 2021.

The release explains that management is now expecting underlying earnings before interest and tax (EBIT) of $360 million to $380 million. This compares with its previous guidance range of between $260 million and $310 million.

Sim’s CEO and Managing Director, Alistair Field, said “In our April release we factored in justifiable concerns that the rapid rise in prices commencing in December 2020 contributed to exceptional EBIT that would not be sustained in the fourth quarter. It is pleasing that this is not the case and we are forecasting the fourth quarter to be as strong as the third quarter.”

However, it has warned that achieving the forecasted FY 2021 result assumes a successful June shipping schedule.

The Sims share price is now up 30% since the start of the year.

The post Why the Sims (ASX:SGM) share price is surging 6% higher today appeared first on The Motley Fool Australia.

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• Why ASX energy shares could outperform this morning

James Mickleboro does not own any shares mentioned.The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX energy shares are have started the trading day on a positive footing as the oil price steadies at a more than two-year high.

The crude price jumped on Friday on a bullish report from the International Energy Agency (IEA), reported Reuters.

The Brent oil price benchmark rallied to over US$73 a barrel and is up by over around 85% from a year ago when COVID-19 devastated the market.

Despite this bullish backdrop, ASX energy shares aren’t shooting the lights out.

Muted ASX energy shares despite high oil price

The Woodside Petroleum Limited (ASX: WPL) share price increased by 0.7% to $23.78, Oil Search Ltd (ASX: OSH) share price added 0.5% to $4.12 and the Santos Ltd (ASX: STO) share price gained 0.4% to $7.70 in early trade.

In contrast, the S&P/ASX 200 Index (Index:^AXJO) improved by 0.7%. The lacklustre performance of the sector may be due to two countervailing factors.

Firstly, US shale oil production is on the increase thanks to higher commodity prices.

Supply increase counters bullish outlook

Unconventional oil output from the US crumbled along with the oil price in 2020. It is more expensive to produce oil from shale and most US producers could not do this profitably with the oil price under US$50 a barrel.

But with the commodity price hovering over US$70 a barrel, that’s a totally different matter.

The US Energy Information Administration is predicting that shale production will rise by around 38,000 bpd in July to 7.8 million bpd, according to Reuters.

Shale accounts for more than two-thirds of total US production.

COVID still haunting oil markets

What’s more and the UK and Victoria reminds us that economies can open and shut quickly. UK Prime Minister Boris Johnson just delayed plans to lift most of the country’s COVID restrictions by a month.

This is to combat the rise of the more infectious and deadly Delta strain of the virus. Ongoing restrictions dampen demand for oil.

These factors have taken some wind out of the ASX energy’s sails this morning. But investors should still be pleased that demand for oil is rebounding strongly.  

Oil price rise supports ASX energy shares

The IEA said last week that it is expecting global oil demand to recover to pre-COVID levels by end of 2022. This is faster than originally forecast.

Vehicle usage and the return of the dreaded peak hour traffic-jams are a testament to how quickly things are bouncing back. Air travel is also on an upward, although patchy, path to recovery.

Seasonal supply off-line

The seasonal refinery maintenance shutdowns in Canada and the North Sea are also supporting oil prices.

Rystad Energy estimates about 330,000 barrels of oil a day (bpd) of oil and condensate supply is offline at Canada oil sands projects, along with another 370,000 bpd offline in the North Sea.

The tug-of-war between bulls and bears will only add to the volatility in ASX energy share prices. The silver-lining is that the stagnation or easing in the oil price will take some of the edge off inflation worries.

The post Why ASX energy shares could outperform this morning appeared first on The Motley Fool Australia.

More reading

• 2 top ASX 200 shares that might be buys today
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Brendon Lau owns shares of Santos Ltd. Connect with me on Twitter @brenlau.

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

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The Suncorp Group Ltd (ASX: SUN) share price is pushing higher in morning trade.

At the time of writing, the insurance giant’s shares are up 1% to $11.34.

Why is the Suncorp share price pushing higher?

Investors have been buying the company’s shares this morning following the release of an update on recent severe weather affecting regions across metropolitan and regional Victoria.

According to the release, as at 6:30pm on Monday, Suncorp had received approximately 3,750 claims predominantly for property damage.

But it doesn’t expect the claims to stop there. Management notes that as the full extent of damage caused by the heavy rain, severe winds and flash flooding is still unfolding, claims are expected to rise further in the coming days and weeks.

Suncorp’s CEO Steve Johnston said: “Victorians have already been through a lot, and we are moving as quickly and as safely as we can to help our customers and communities affected by this severe weather. Our customer support teams are on the ground in Traralgon providing face-to-face support to all our affected customers including AAMI, Apia and GIO, and we have scaled up our flexible claims team to manage the increase in claims and calls from customers.”

Natural hazard costs

Suncorp’s total natural hazard costs across Australia and New Zealand year to date to 31 May 2021 were $955 million. This was approximately $40 million above the year to date allowance of $915 million. These estimates exclude any associated risk margin or claims handling expenses.

Positively, though, the company has a comprehensive reinsurance program in place and given its remaining covers, the maximum potential loss from this event will be $50 million.

What now?

Mr Johnston believes more needs to be done to prevent events like this from happening.

He concluded; “What we’re seeing in Victoria should again act as a reminder to the devastation which can be caused by severe weather events. More needs to be done to better protect homes in flood-prone regions across the country, including improved town planning and government investment in mitigation infrastructure.”

The Suncorp share price is up 15% since the start of the year.

The post Suncorp (ASX:SUN) share price pushes higher on claims update appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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