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The S&P/ASX 200 Index (ASX: XJO) is trading relatively flat on Thursday, down just 0.01% at the time of writing, but it’s a different story with these three shares.

They’re each making notable moves on the back of quarterly updates. Let’s take a look.

3 ASX 200 shares making moves on quarterly updates

Let’s start with ASX 200 investment management company Challenger Ltd (ASX: CGF). Its share price is down 3.5% to $6.30 after clawing back from an intraday low of $6.24 on the back of its third-quarter update.

The company revealed $2 billion of Total Life sales, a 2% jump in assets under management – reaching $102 billion, and a 3% jump in its Funds Management business’ funds under management – coming in at $96 billion.

However, the market might be focused on a 50% drop in institutional annuity sales, falling to $1 billion. Managing director and CEO Nick Hamilton said:

As we prioritise growth in longer duration retail business, we have seen a moderation of institutional annuity sales, with a lower level of maturities reinvested.

Institutional annuity sales are typically much shorter duration, and we remain very disciplined on institutional term annuity pricing.

On a brighter note, the share price of ASX 200 pallet company Brambles Ltd (ASX: BXB) soared 5% to a 52-week high of $14.66 earlier today on a guidance upgrade. It’s since settled at $14.07 a share, 1.15% higher.

The company’s sales rose 15% at constant currency over the first nine months of this fiscal year to nearly US$4,482 million.

It now expects its full-year sales revenue growth to come in between 14% and 15% at constant currency. Meanwhile, its underlying profit is forecast to grow by 17% to 19% at constant currency.

It previously tipped its revenue and profits to grow 12% to 14% and 15% to 18% respectively.

Finally, shares in ASX 200 uranium producer Paladin Energy Ltd (ASX: PDN) tumbled 3% to an intraday low of 62 cents. It followed the release of its quarterly activities and cash flow report.

The company spent US$18.7 million last quarter as it worked to restart activities at the Langer Heinrich Mine in Namibia, Africa. That left it with a US$147.2 million cash balance.

The project is estimated to be around 40% complete, with first production on track for the first quarter of 2024. CEO Ian Purdy said today:

With a strong uranium contract book and a world class asset in the Langer Heinrich Mine, Paladin remains well positioned to deliver long term value for our stakeholders.

The company’s share price is currently trading at 63.2 cents a share, 1.25% lower.

The post 3 ASX 200 shares making big moves following quarterly updates appeared first on The Motley Fool Australia.

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More reading

• Everything you need to know about the latest Bank of Queensland dividend
• The ASX shares that could win in the long term
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• 4 ASX 200 shares going gangbusters in high inflation (and what they have in common)

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 recommended Challenger. 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 Allkem Ltd (ASX: AKE) share price is in the red in early afternoon trade.

The S&P/ASX 200 Index (ASX: XJO) lithium stock closed yesterday trading for $12.28 per share. Shares are currently changing hands for $11.755 apiece, down 4.3%. At the same time, the benchmark index is up 0.01%.

Allkem’s drop comes amid broader weakness today for all the ASX 200 lithium shares. And it follows this morning’s release of Allkem’s quarterly activity results for the three months ending 31 March.

We look at the highlights below.

Allkem share price dips despite improved cash position

• Quarterly revenue of US$315 million (unaudited)
• Gross operating cash margin of US$269 million, or 85%
• Progressed with proposed US$200 million project finance facility for the Sal de Vida Project by the International Finance Corporation
• Net cash at 31 March of US$578 million, up from US$552 million on 31 December

What else happened during the quarter?

The Allkem share price isn’t getting a boost today, despite the miner reporting a new record March quarter for lithium carbonate production from its Olaroz Lithium Facility.

Olaroz produced 4,102 tonnes of lithium carbonate in the three months. That’s up 38% on the previous corresponding period. Lithium carbonate sales of 2,904 tonnes generated record Olaroz quarterly revenue of roughly US$159 million. That went hand in hand with a record gross cash margin of 91%, or US$47,814/tonne.

The Olaroz Resource increased by 27% to 20.7 million tonnes of lithium carbonate equivalent (LCE) following expansion drilling and inclusion of the recently acquired Maria Victoria property.

Excluding shipments to Naraha, Allkem reported that third-party lithium carbonate sales for the quarter averaged US$53,175/tonne free on board (FOB). That’s in line with the ASX 200 lithium company’s guidance and a slight increase from the December quarter.

What’s next?

Looking to what could impact the Allkem share price in the months ahead, the company said it expects the weighted average price for third-party sales of lithium carbonate products in Q4 FY23 to be approximately US$42,000/tonne, subject to final sales allocation.

Allkem is also optimistic about an uptick in EV sales. The company said, “Despite a slower start to the calendar year, global EV sales forecasts remain at ~14 million units, implying a steady acceleration during the remainder of 2023.”

And it expects the lithium supply situation to remain tight.

“Whilst additional lithium supply is expected to be brought online in the near to medium term, the quantum of the increase is likely to continue to lag relative to consensus views on timing,” the company said.

Allkem share price snapshot

As you can see on the chart below, the Allkem share price remains up 6% in 2023 despite today’s retrace. Shares are down 11% over the past 12 months.

The post Allkem share price slides despite strong quarterly production from the ASX 200 lithium stock appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Why did Pilbara Minerals shares charge higher today?
• Here’s the latest forecast for ASX 200 lithium stocks from UBS
• Here are the top 10 ASX 200 shares today
• Morgans says the Pilbara Minerals share price can rise 40%

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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Santos Ltd (ASX:STO) shares are in the red on today. The oil and gas producer released its first quarter report to the market today.

Santos shares are sliding 1.26% to $7.03. For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) is down 1.25% today. Woodside Energy Group Ltd (ASX: WDS) shares are falling 1.39%.

The Brent Crude Oil price is down 0.29%, while natural gas is 1.08% in the red, according to Bloomberg Energy.

So what did Santos report to the market today?

What did Santos report?

Santos’ first quarter 2023 results include:

• Sales revenue slid 13% compared to Q4 22 to US$1.631 billion
• Production slid 13% compared to the last quarter to 22.2 million barrels of oil equivalent (mmboe)
• Sales volume fell 12% to 23.8 mmboe
• Capital expenditure dropped 16% to 564 million
• Free cash flow of US$720 million during the quarter
• Full-year 2023 production guidance of 86 to 96 mmboe production maintained

What else happened?

Santos’ revenue equates to about $2.4 billion Australian dollars. First-quarter sales revenue fell on the previous quarter due to sliding domestic gas and LNG sales volumes and a falling LNG and oil price.

The average realised price of LNG fell from US$16.92 per mmBtu in the fourth quarter of 2022 to US$14.46 per mmBtu in the first quarter of 2023.

Meanwhile, the average realised crude oil price dropped from US$94.71 a barrel in the previous quarter to US$87.59 a barrel in the first quarter of 2023.

Sales volumes were also less than the last quarter due to sliding domestic gas sales from Western Australia. This was partly counteracted by more crude oil and condensate volumes.

Production in the first quarter fell amid lower domestic gas volumes in Western Australia. However, this was offset by higher volumes from the Bayu-Undan field.

Management commentary

Commenting on the results, Santos managing director and CEO Kevin Gallagher said the company delivered another solid quarter of production and cash flow generation.

Despite the uncertain external environment Santos continues to perform strongly against the backdrop of regulatory and economic uncertainty.

The disciplined operating model we have in place positions us to deliver on our strategy to backfill and sustain our infrastructure, decarbonise and develop future clean fuels.

What else?

Santos highlighted the company’s Barossa project in the Northern Territory is 56% finished. The drilling activities remain on hold amid environmental plan resubmission and approval.

Drilling activities could potentially recommence “before the end of the year”.

Meanwhile, drilling activities at the Pikka Phase 1 oil project in Alaska are due to commence in the second quarter of 2023.

The Moomba carbon capture and storage project is 60% finished and the first injection is forecast for early 2024.

Santos share price snapshot

The Santos share price has slid 15% in the last year.

Santos has a market cap of around $23.2 billion based on the latest share price

The post Santos shares slide amid falling oil and gas prices appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Bought $6,000 of Santos stock in 2018? If so, here’s how much dividend income you’ve earned
• Macquarie says changes to this tax could be a red flag for Woodside shares
• 5 things to watch on the ASX 200 on Monday
• ASX 200 energy shares Santos and Woodside outperforming as oil hits new 2023 highs

Motley Fool contributor Monica O’Shea 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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It’s set to be a very pleasant day indeed for investors in the Vanguard Australian Shares Index ETF (ASX: VAS). Not because of anything that’s happening on the share market itself this Thursday though. In fact, right now, the S&P/ASX 300 Index (ASX: XKO) that this Vanguard exchange-traded fund (ETF) tracks is down by 0.08%.

As you would expect from an index-tracking ETF, Vanguard Australian Shares units are also down by a similar amount today.

But it’s still going to be a great day for these investors. Why? Because it’s dividend distribution payday for the Vanguard Australian Shares ETF.

Most investors know that the majority of ASX 300 shares pay dividends. But if an ETF holds a divided share in its underlying portfolio, it too receives these dividends. The ETF is required to pass these through to its own investors in the form of a distribution.

The Vanguard Australian Shares’ underlying portfolio is built around the 300 largest shares on the ASX. So it holds many a dividend-paying share.

As such, this ETF pays out regular dividend distributions. In fact, investors enjoy one every three months.

And the latest is hitting bank accounts today.

How much is this Vanguard Australian Shares ETF dividend worth?

Investors are in line to receive a payment worth 57.7 cents per unit. This covers the three months to 31 March 2023. Vanguard units traded ex-distribution for this payment on 3 April, but eligible investors had to wait until today to receive it. Well, the wait is now over.

This payment is a relatively small one compared to some of this ETF’s previous distributions. For example, last year’s corresponding quarterly distribution was worth 199.59 cents per unit. And the last distribution investors received from Vanguard back in January came to 74.97 cents per share.

Even so, today’s payment translates to a distribution yield of 0.63% on the current Vanguard Australian Shares unit price (2.53% annualised).

Together with the last three distributions investors have received from this ETF, we now have a trialling annual yield of 5.41%.

The Vanguard Australian Shares ETF has delivered an average return of 8.63% per annum over the five years to 31 March (including dividend distributions):

This ASX ETF charges investors a management fee of 0.1% per annum.

The post The Vanguard Australian Shares Index ETF dividend is being paid today. Here’s the lowdown appeared first on The Motley Fool Australia.

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More reading

• Here’s how I’d dip my toe in the Aussie stock market with $500
• The cheapest index fund on the ASX revealed
• Is the Vanguard Australian Shares Index ETF (VAS) still a dirt-cheap buy in April?
• Sunk $10,000 in the Vanguard Australian Shares ETF 3 years ago? Here’s how much passive income you’ve earned
• 3 reasons to start buying ASX shares this week

Motley Fool contributor Sebastian Bowen has positions in Vanguard Australian Shares Index ETF. 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 Bank of Queensland Ltd (ASX: BOQ) share price is lifting on Thursday despite the company slashing its interim dividend amid a brutal hit to its bottom line.

The S&P/ASX 200 Index (ASX: XJO) bank dropped its first-half earnings this morning, as The Motley Fool Australia reported earlier.

Within the release, it revealed a 20 cents per share, fully franked interim dividend – a 9% drop on that of the prior comparable period.

Right now, Bank of Queensland shares are trading 2.38% higher than their previous close at $6.44 apiece. At the same time, the ASX 200 is down 0.07%.

So, without further ado, let’s delve into the nitty-gritty details of the Bank of Queensland’s upcoming dividend.

All you need to know about Bank of Queensland’s latest dividend

Attentive owners of Bank of Queensland shares are probably unsurprised by the company’s reduced interim dividend. The bank warned it would likely be slashed last week.

It updated the market on two one-off non-cash items set to dint its bottom line last Friday – a $60 million provision for its integrated risk program and a $200 million write-down of goodwill.

As a result, the bank’s statutory net profit after tax (NPAT) for the first half of financial year 2023 plummeted 98% to $4 million.

That considered, shareholders might be relieved the interim dividend got away with a 9% haircut.

The 20 cents per share dividend represents 51% of the bank’s cash earnings for the period. They came to $256 million after tax.

Though, adjusting for the $60 million provision, the payout ratio sits within its 60% to 75% target range – just – coming in at 61%.

Key dates

Anyone holding Bank of Queensland shares when the market closes on 9 May will receive the 20 cents per share offering.

The stock will trade ex-dividend the following day.

Investors will then have to wait until 1 June to see their dividends.

Those who want to receive their dividends in the form of new shares have until 12 May to opt into the bank’s dividend reinvestment plan (DRP). The plan will offer stock at a 1.5% discount to the 10-day daily volume weighted average price from 1 May.

Bank of Queensland shares still offer a healthy 6.9% dividend yield, considering the 20 cents per share offering announced today and its previous 24-cent final dividend, paid in November.

Bank of Queensland share price snapshot

Today’s gain hasn’t proven enough to boost the Bank of Queensland share price back into the longer-term green.

The stock has fallen 6% so far this year. It’s also 20% lower than it was this time last year.

For comparison, the ASX 200 has gained 6% year to date. Though, it has fallen 3% over the last 12 months.

The post Everything you need to know about the latest Bank of Queensland dividend appeared first on The Motley Fool Australia.

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More reading

• Bank of Queensland share price lifts despite plunging profits
• The ASX shares that could win in the long term
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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 Scott Phillips.

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The All Ordinaries Index (ASX: XAO) share AMA Group Ltd (ASX: AMA) has had a terrible week. It’s currently down 35% from last Friday.

AMA Group describes itself as the leading vehicle collision repairer in the industry. It aims to repair the vehicle to its “pre-accident condition and to provide exceptional customer experience.”

Earlier this week, the business provided its quarterly update for investors, which didn’t make for good reading.

Guidance reduced by the All Ords ASX share

AMA reduced its $60 million to $68 million of normalised earnings before interest, tax, depreciation and amortisation (EBITDA) compared with the previous guidance of $70 million to $90 million, reflecting “ongoing margin compression adverse to expectations”.

It pointed to strong repaid volume demand adversely impacted by “industry-wide labour constraint related throughput challenges”.

The tight labour market is leading to higher employee costs per hour and “operational disruption”.

The All Ords ASX share said that many industry contracts “still do not contain appropriate dynamic adjustment mechanisms that insulate parties from external pressures such as inflation or increasing repair severity”.

AMA also revealed that its supply strategy is progressing slower than anticipated.

The operating cash flow generated in the third quarter of FY23 was $0.3 million. The company said there is an upward trend in its underlying cash flows over the three quarters. It finished with $20.5 million of cash on its balance sheet at 31 March 2023.

Director buys AMA shares

Director Jonathan Talbot Babineau decided to buy 1 million shares on 18 April 2023 on the market. That took the total holdings of his family and entities to around 8 million AMA shares, so he has a lot of money invested in the business.

It’s a good sign when one of the leadership wants to buy shares of the company. It can suggest that the director thinks the shares are good value.

When the business announced this update, it outlined a number of factors about why the company’s management is still confident.

For the labour shortages, the company is looking at international recruitment, an “industry-leading” apprenticeship program and “enhanced employee satisfaction.”

It noted that there’s a pathway to long-term improved pricing outcomes. New and/or extended contracts have been entered into with some insurance and direct revenue partners. Its FY24 pricing process has commenced.

The company noted network and organisational optimisation activities, aimed to increase productivity and reduce indirect labour costs.

Management also pointed to expansion progression with investments in heavy motor and its AMA collision.

Foolish takeaway

There may not be a quick fix for AMA, but it’s positive that one of the directors thinks it’s a buy. Time will tell whether the market or the director is right about the company’s prospects.

The post This ASX All Ords stock is down 35% this week, and a director just snapped up 1 million shares appeared first on The Motley Fool Australia.

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More reading

• Why AMA, New Hope, Regis Resources, and St Barbara shares are dropping
• Why did ASX All Ords share AMA just crash 30%?
• These are the 10 most shorted ASX shares this week

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 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 Zip Co Ltd (ASX: ZIP) share price is marching higher on Thursday, up 2.31%.

Shares in the ASX buy now, pay later (BNPL) company closed yesterday trading for 52 cents. They are currently swapping hands for 53.2 cents apiece. Zip shares climbed as high as 56 cents each this morning — a 7.7% jump.

This comes following the release of the company’s third-quarter results for the three months ending 31 March (Q3 FY23).

Read on for the highlights.

Zip share price lifts alongside quarterly profits

• Group quarterly revenue of $182 million, an increase of 15% from Q3 FY22
• Transaction volume of $2.2 billion, up 9% year on year
• Revenue margin for the core business of 8.3%, up from 7.9% in Q3 FY22
• 2 million active customer numbers as at 31 March

What else happened during the quarter?

The Zip share price could also be receiving a boost today from the company’s improved cash transaction margin for its core business. That increased to 2.8% for the quarter, up from 2.5% in Q3 FY22. This was in line with medium-term targets.

The ASX BNPL stock also reported revenue growth of 23% year on year for its ANZ segment. Meanwhile in the United State segment, credit loss rates dropped to 1.2% of total transaction volumes, down from 3.7% in Q3 FY22.

Zip signed or launched a number of key enterprise merchants over the three months. Those included: ASICS in Australia, PlaceMakers in New Zealand, and Pet Supermarket and World Wrestling Entertainment in the US.

In Australia, Zip has also signed and launched with Peloton in the new quarter. The company said its Australian business delivered record revenue in Q3 FY23, with current market conditions and industry consolidation “providing a great opportunity to increase market share”.

What did management say?

Commenting on the results sending the Zip share price higher today, CEO Larry Diamond said:

We are very pleased to again deliver both solid top line growth and strong, improved margins for the quarter.

Zip’s differentiated business model, which is less reliant on discretionary consumer spending, is proving resilient in the current operating environment with core cash transaction margin increasing to 2.8%, driven by revenue margin expansion to 8.3% and an ongoing focus on credit performance.

What’s next?

Looking to what could impact the Zip share price in the months ahead, the ASX BNPL stock expects aggregate net cash inflows of approximately $20 million in H2 FY23. That relates to the divestment of its Twisto businesses in Central and Eastern Europe, its Payflex business in South Africa, and the wind-down of its business in the Middle East.

Zip reported it’s on track to deliver up to 50% core cash EBTDA improvement in H2 FY23 versus the $33 million result for H1 FY23. The company said it is well funded with sufficient available cash and liquidity to support it through to cash EBTDA profitability in H1 FY24.

Zip share price snapshot

As you can see in the chart below, the Zip share price will need some more up days like today to get back into the green.

Shares in the ASX BNPL stock are down 3% in 2023 and down 55% over the past 12 months.

The post Zip share price climbs on 15% revenue boost appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares this week
• Why 29Metals, Block, Champion Iron, and Zip shares are dropping today
• Could buying Zip shares be a classic ASX beginner’s error?
• These are the 10 most shorted ASX shares this week
• Why did the Zip share price zoom higher in March?

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 Zip Co. 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 Australian Competition and Consumer Commission has announced it will oppose Qantas Airways Limited (ASX: QAN)’s proposed takeover of Alliance Aviation Services Ltd (ASX: AQZ).

Although a blow to investors of both airlines, Qantas shares actually rose 0.76% in early Thursday morning trade after the revelation. 

The Alliance share price understandably plunged 7.7%.

Alliance is a regional airline as well as a “wet lease” provider to the larger carriers.

The competition watchdog noted that both companies are key providers of air services for mining businesses that need to get “fly-in fly-out” workers to and from remote locations.

The dilution of competition on those routes is not worth the merger, it concluded.

Customers prefer Alliance

ACCC chair Gina Cass-Gottlieb pointed out the acquisition would “combine two of the largest suppliers of charter services in Western Australia and Queensland”.

“Qantas and Alliance currently strongly compete with each other in markets where there are few effective alternatives,” she said.

“Flying workers in the resource industry to and from their worksites is an essential service for this important part of the Australian economy, so it is critical that competition in this market is protected.”

The ACCC investigation also found substantial feedback from customers that they value Alliance as a “vigorous and effective” alternative to Qantas.

“For many customers, Alliance is the preferred supplier due to its large fleet capacity, customer-centric approach and high-quality service offerings, including having the highest on-time-performance in the industry and demonstrated flexibility and willingness to meet customer needs,” said Cass-Gottlieb.

“Alliance doesn’t sell seats on major passenger routes, so many Australians may not have heard of them, but it is one of Australia’s most significant airlines, with 70 aircraft currently and more on order.”

Qantas fuming; wants answers from ACCC

In a statement to the ASX, Qantas announced it would “seek more information” from the ACCC on its decision.

“Qantas remains confident the acquisition would not substantially lessen competition in any market,” read the announcement.

“Australia has one of the most competitive aviation industries in the world. That competitive dynamic is intensifying with new entrants and expansion of existing carriers and significant growth in the resources sector.”

Qantas noted that the ACCC approved Regional Express Holdings Ltd (ASX: REX)’s buyout of charter provider National Jet Express within 11 days, but opposed the Alliance transaction after months of investigations.

The watchdog reported that the other players in the aviation industry, such as Regional Express and Virgin Australia, could not expand fast enough to make up for the loss of competition from Alliance.

“Airlines wanting to enter, or expand at scale, face a combination of barriers, including incumbency advantages, the need to establish a reputation for providing a reliable service, access to and training of air crew and engineers, access to suitable aircraft and infrastructure, and the significant regulatory requirements to fly,” said Cass-Gottlieb.

“This combination of factors makes it very difficult for smaller airlines to win significant customer contracts and grow their business.”

The post Qantas share price rises despite BRUTAL blow from watchdog appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo 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 Alliance Aviation Services. 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 Rio Tinto Ltd (ASX: RIO) share price is in the red amid the mining giant announcing record first-quarter iron ore shipments.

The S&P/ASX 200 Index (ASX: XJO) company’s Pilbara iron ore business shipped 82.5 million tonnes of the steel-making material in the March quarter – a 16% jump on the prior comparable period.

The Rio Tinto share price is down 1.75% in early trade on Thursday, with stock in the miner swapping hands for $121.04 a share.

Let’s take a closer look at the company’s first-quarter production results, released this morning.

Rio Tinto share price drops on record first-quarter iron ore exports

Here are the key takeaways from the miner’s quarterly production report:

• Its Pilbara iron ore business produced 79.3 million tonnes and shipped 82.5 million tonnes – marking respective jumps of 11% and 16%.
• Rio Tinto produced 12.1 million tonnes of bauxite – an 11% slump
• Its aluminium and titanium dioxide slag production lifted 7% and 4% to 785 kilotons and 285 kilotons respectively
• Finally, its mined copper production was flat at 145 kilotons

Production at the company’s Kennecott copper operation dropped 36% due to record snowfall and the failure of a conveyor belt, while its Escondida and Oyu Tolgoi operations saw their copper production jump 6% and 41% respectively.

Rio Tinto spent US$310 million pre-tax on exploration and evaluation last quarter – up from $168 million in the prior period.

What else happened last quarter?

Commodity prices generally strengthened last quarter amid a resilient global economy, the company notes.  

Iron ore prices increased 8% over the period, lifting to an average monthly price of US$125 per dry metric tonne – up 27% on that of the final quarter of last year.

Meanwhile, the aluminium price slipped 1% over the quarter to an average of US$2,395 a tonne (up 3% quarter-on-quarter) and the copper price rose 7% to US$4.05 a pound.

Rio Tinto also entered a joint venture to kick start the development of its La Granja copper project and delivered the first sustainable production from the underground mine at Oyu Tolgoi during the period.

What did management say?

Rio Tinto CEO Jakob Stausholm commented on the update driving the company’s share price today, saying:

We continue to make steady progress with our highest ever first quarter shipments achieved in the Pilbara iron ore business.

Through the ongoing deployment of our Safe Production System we expect to see a sustainable lift in operating performance across our global portfolio over time, in line with improvements already achieved.

What’s next?

But there was some potentially disappointing news from the iron ore giant this morning.

Rio Tinto dropped its full-year copper production guidance to between 590 kilotons to 640 kilotons. That’s down from 650 kilotons to 710 kilotons.

The downgrade mainly reflects the impact of the conveyor outage at Kennecott and geotechnical challenges at Escondida’s open pit.

All other full-year production guidance remains unchanged.

Rio Tinto share price snapshot

The Rio Tinto share price has been outperforming the market in recent months.

The stock has gained 5% since the start of 2023. It’s also 3% higher than it was this time last year.

Comparatively, the ASX 200 has jumped 6% year to date and has fallen 3% over the last 12 months.

The post Rio Tinto share price falls despite record iron ore exports 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 Scott Phillips.

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The Bank of Queensland Ltd (ASX: BOQ) share price is up 0.87% in early morning trade.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock are currently trading for $6.345 apiece.

This comes following the release of the company’s half-year results (1H23) for the six months to the end of February.

Here’s what you need to know.

Bank of Queensland share price lifts despite profit dive

• Statutory net profit after tax (NPAT) of $4 million, down 98% from 1H22
• Cash earnings after tax of $256 million, down 4% from 1H22
• Net interest margin of 1.79%, up 0.04% from 2H22
• Common equity tier 1 (CET1) ratio 10.71%, increased 1.14% from 2H22
• Interim dividend of 20 cents per share, fully franked, down 9% year on year

What else happened during the half year?

Atop seeing cash earning slip over the six months, the Bank of Queensland share price also is shaking off the bank’s 7% year-on-year increase in operating expenses, which reached $495 million for the six months.

The bank noted that its dramatic decline in statutory NPAT included two one-off non-cash items. Namely the $60 million provision for its Integrated Risk Program and a $200 million impairment of goodwill.

BOQ said the boost in its CET1 ratio includes the benefit it received from the implementation of Basel III. The bank intends to retain the higher capital buffer with a revised CET1 target range of 10.25% to 10.75%.

Over the six months, Bank of Queensland progressed with its digitisation program. It reported having $3.8 billion of customer deposits on its new digital banking platform.

What did management say?

Commenting on the results that see the Bank of Queensland share price in the green in early trade today, CEO Patrick Allaway said:

BOQ is in a strong financial position as we enter this more challenging economic cycle. We are well positioned to continue to invest in our transformation to deliver a stronger and simpler low-cost digitally enabled bank.

We have made significant progress since announcing our strategy in 2020 across digitisation; improving our strategic position through the ME bank acquisition, achieving growth across our brands and strengthening our financial resilience.

What’s next?

Looking ahead to what could impact the Bank of Queensland share price down the road, management said it expects heightened mortgage competition to continue. Deposit competition will also remain stiff due to Term Funding Facility refinancing. The bank anticipates interim margin compression.

BOQ said its focus will remain on its multi-brand approach, with diversification across the retail and business banking portfolios. Its dividend payout ratio target range is 60% to 75% of cash earnings.

Flagging potential headwinds, the bank noted that “a number of internal and external reviews identified a material uplift is required” in its “operational resilience, risk culture and governance and BOQ’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) program and compliance”.

Bank of Queensland said its Integrated Risk Program will be independently assured. However, the bank added, “There remains a risk that BOQ will be subject to penalties, sanctions or other enforcement action in respect of these matters.”

Bank of Queensland share price snapshot

As you can see in the chart below, it’s been a difficult year for the Bank of Queensland share price, down 21% over the past 12 months.

The post Bank of Queensland share price lifts despite plunging profits appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
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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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