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The Orora Ltd (ASX: ORA) share price is climbing this afternoon, up 5.86% to an intraday high of $2.90 at the time of writing.

This follows the release of the packaging products and solutions provider’s financial results for the half-year ending 31 December (H1FY21).

What financial results did Orora report?

This morning, Orora reported sales revenue of $1.814 billion, down 1.2% on the H1 FY20 sales revenue results. On a constant currency basis, however, Orora’s sales revenue increased 3.1% over the corresponding half year.

The company reported an underlying net profit after tax (NPAT) before significant items of $91.1 million. That’s an increase of 18.9% on the prior corresponding period. Underlying earnings per share (EPS) increased 20.0% over the corresponding half, to 9.6 cents per share (cps).

Underlying earnings before interest and tax (EBIT) came in at $140.0 million, an increase of 5.2%. On a constant currency basis, the company said that underlying EBIT was up 7.5% compared to H1 FY20.

Operating cash flow of $144.8 million was up 13.8%, or $17.6 million from the previous corresponding period. And net debt fell some $15 million from 30 June to approximately $277 million as at 31 December.

What did management say?

Commenting on the results, Orora CEO Brian Lowe said:

In Australasia, Orora’s market leading beverage business continued its track record of earnings growth. The earnings improvement was predominately driven by strong volumes across cans and closures. Volume gains were partially offset by an unfavourable mix in cans and glass driven by an increase in at home consumption and ongoing higher energy and insurance costs.

In North America, constant currency earnings were higher for both Orora Packaging Solutions (OPS) and Orora Visual (OV), following increased sales force effectiveness and a strong focus on cost control measures.

Lowe noted that COVID-19 in its North American markets had impacted revenue more than what was experienced in Australasia.

Looking ahead, he added, “A preliminary assessment of international beverage footprint expansion is underway, and we continue to actively assess and invest in our future requirements to meet customer and consumer needs.”

Orora will pay an interim ordinary dividend of 6.5 cents per share (cps) unfranked, which is unchanged from H1 FY21.

Orora share price snapshot

Over the past 12 months, the Orora share price is down 20%, having yet to fully recover from the hit it took during last year’s viral selloff in February and March. By comparison, the S&P/ASX 200 Index (ASX: XJO) is down 3% in that same time.

With today’s intraday gains taken into account, year-to-date the Orora share price is up 6.4%.

More reading

• ASX 200 up 0.2%: ANZ and CSL impress, Fortescue declares huge interim dividend
• Oz Minerals (ASX:OZL) share price hits 13-year high as profit jumps 30%
• The Seven Group (ASX:SVW) share price is slipping today despite dividend bonus
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 dips, EML soars after reporting, Appen sinks

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

The post Why the Orora (ASX:ORA) share price is soaring 6% today appeared first on The Motley Fool Australia.

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Coca-Cola Amatil Ltd (ASX: CCL) has reported a 52% drop in statutory net profit after tax (NPAT) in its full-year results.

The company on Thursday morning revealed a $179.9 million statutory NPAT for the year ending 31 December. The big fall from $374.4 million in 2019 was attributed to impairments to its Indonesian, Fijian and Samoan arms.

“While our Indonesian business continued to face challenging trading conditions, contributed to by COVID-19 infection rates remaining high… it was able to deliver positive EBIT and a strong cash flow for the year,” said managing director Alison Watkins.

Excluding the impairments, the ongoing NPAT for 2020 of $340.3 million was still 13.6% lower compared to 2019.

Trading revenue (down 6.1%), ongoing earnings before interest, tax, depreciation and amortisation (EBITDA) (down 9%), ongoing EBIT (down 13.9%) and volume (down 4.2%) also went backwards since 2019. 

“Whilst we were able to partially offset some of the Australian EBITDA decline through our strong cost management initiatives, the lower volumes and revenue resulted in a reduced capacity to absorb fixed costs such as production, sales and support expenses,” Watkins said.

Dividend down and to be deducted from sale price

Coca-Cola Amatil announced it would pay out a dividend of 18 cents per share, which is down from 26 cents this time last year.

The business is currently the subject of a takeover from Coca-Cola European Partners PLC (NYSE: CCEP). Earlier this week the acquisition offer was increased from $12.75 to $13.50 per share.

The fully franked dividend will be deducted from the sale price for each share.

“The final dividend amount was set to allow available franking credits to be returned to Australian shareholders,” said Watkins.

Dividend ex-date	Type	Amount per share	Franking
16.4.2021	Final	18 cents	100%
25.8.2020	Interim	9 cents	0%
25.2.2020	Final	26 cents	0%
26.2.2019	Final	26 cents	50%
27.8.2018	Interim	21 cents	65%
Table created by author

The Coca-Cola Amatil share price is flat on Thursday, nudging up just 0.04% as of mid-afternoon. Its current price of $13.38 is substantially higher than the $11.93 it was fetching one year ago.

The sale of the business to the European bottler has been approved by the Australian Foreign Investment Review Board. The transaction is still waiting for a green light from the New Zealand Overseas Investment Office.

If all goes well, the takeover will complete in early to mid-May.

Performances vary across regions

Watkins said that the South Pacific businesses will continue to suffer in the near term.

“Amatil’s trading performance in Fiji and Samoa continued to be adversely impacted by COVID-19, with expectations that both markets will remain challenged until international travel restrictions are eased.”

In Australia, the change in sales channels in 2020 reflected customers’ behaviour during the pandemic. The grocery channel was up 4.3% for the 2020 financial year and convenience and service stations also increased 0.4% — but sales “on-the-go” were down 16.4%.

More reading

• Why Atomos, Bendigo and Adelaide Bank, Coca-Cola Amatil, & Nearmap are racing higher
• Why is the Coca-Cola Amatil (ASX:CCL) share price gaining today?
• Why the Coca-Cola Amatil (ASX:CCL) share price is pushing higher
• These blue chip ASX shares just hit multi-year highs
• Why the Coca-Cola Amatil (ASX: CCL) share price is in focus today

Motley Fool contributor Tony Yoo 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 Medlab Clinical Ltd (ASX: MDC) share price is on the rise in mid-afternoon trade. This comes after the company announced an agreement with Australia’s largest generic and over the counter pharmaceutical company, Arrotex.

Consequently, at the time of writing, the Medlab share price is fetching 34 cents apiece, up 3.08%.

Below, we take a closer look at the deal between Medlab and Arrotex.

Milestone agreement

Medlab shares are in the green today after reporting an important agreement that will unlock new opportunities for the company.

According to its release, Medlab advised it has entered an exclusive non-binding Heads of Agreement (HoA) with Arrotex.

Under the deal, Arrotex will assist Medlab in accelerating its cannabinoid formulation NanoCBD for development and distribution to Australian pharmacies. This will include fast-tracking its final application with the Therapeutic Goods Administration (TGA). Medlab hopes to position NanoCBD for pharmacist only medicines schedule (S3).

Interestingly, the HoA is the first time a pharma and biotech have formed a partnership to explore medical cannabis prospects in Australia.

The contract, which will include commercial terms, is expected to be finalised before 1 July 2021.

What did management say?

Medlab CEO Dr. Sean Hall hailed the new agreement, saying:

This is a major milestone for both the Australian market and the budding partnership between Medlab and Arrotex. Unlike many CBD producers, Medlab can deliver to the pharmaceutical standards required for TGA approval and this partnership will now enable direct application into clinical practice through Arrotex’s extensive network. There is a clear alignment within both companies to deliver a superior, approved CBD product to Australian patients.

Dr. Hall went on to speak about the company’s novel medicinal candidate, NanoCBD. He added:

A key differentiator of NanoCBD is the proprietary delivery platform NanoCelle that provides faster and more effective absorption of active ingredients into the bloodstream, without the need for needles or pills. It is a commercially viable platform that offer unique opportunities for partnering with some of the biggest players in the pharma industry.

How has the Medlab share price performed?

Shares in Medlab have been on a rollercoaster ride over the past 12 months, riding on volatile swings. Despite the company’s shares being up a mediocre 11% since this time last year, Medlab has mostly recovered compared to its pre-COVID highs.

More reading

• Coca-Cola (ASX:CCL) pays out dividend, but what’s the catch?
• 3 ASX dividend shares smashing records this reporting season
• Why the ANZ (ASX:ANZ) share price is storming higher today
• Star Entertainment (ASX:SGR) share price rises despite 33% fall in profit
• Why the LiveTiles (ASX:LVT) share price is tumbling 11% lower today

Motley Fool contributor Aaron Teboneras 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.

The post Here’s why the Medlab (ASX:MDC) share price is rising today appeared first on The Motley Fool Australia.

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Reporting is wrapping up for the first half of FY21, and we have seen stellar results from some ASX dividend shares.

Investors hunting for dividends could do well to look at the big miners, which reported record dividends in their most recent results.

BHP Group Ltd (ASX: BHP) saw dividends increase by 55%, while Rio Tinto Limited (ASX: RIO) increased dividends by 26% and Fortescue Metals Group Limited (ASX: FMG) upped its interim dividend by 93%.

The miners benefited from strong demand for commodities, including iron ore, which is trading at record prices. Let’s take a look at these ASX dividend shares in more detail. 

BHP Group

BHP announced record dividends this week as strong demand for iron ore helped the miner increase underlying net profit. The miner announced a record half-year dividend of US$1.01 per share. This represents an 85% payout ratio on an underlying basis and brings BHP’s shareholder returns to more than $30 billion over the past three years.

Profit from operations was up 17% to US$9.8 billion thanks to strong underlying operational performance. The company achieved record iron ore production in Western Australia alongside copper extraction at the Escondida copper mine in Chile. Higher prices for both commodities contributed to strong free cash flow.  

Attributable profit was down by a fifth to US$3.8 billion due to an exceptional loss of US$2.2 billion. This predominantly related to impairments of New South Wales Energy Coal and associated deferred tax assets. Nonetheless, underlying basic earnings per share (EPS) increased by 16% to US119.4 cents a share.

Commenting on the half-year results, CEO Mike Henry said, “Our operations generated robust cash flows, return on capital employed increased to 24 per cent and our balance sheet remains strong with net debt at the bottom of our target range.” 

BHP’s outlook for global economic growth and commodity demand remains positive thanks to policymakers in key economies signalling an enduring commitment to growth. Combined with population growth and rising living standards, these factors are expected to drive continuing growth in demand for energy, metals, and fertilisers.

The company is also accelerating its plan to be lower cost and more productive. With a portfolio of essential products that will support a more prosperous world, BHP says it is well-positioned to generate sustainable returns for shareholders and value for its commodities. 

Rio Tinto

Rio Tinto joined BHP in the record dividend club by delivering the biggest dividend in its history. The continued strength in iron ore prices drove the miner to achieve its biggest profit in nine years.

Rio Tinto announced its full-year results this week for the year ended 31 December 2020. A total dividend of 557 US cents per share was declared, including a special dividend of 93 US cents per share. This represented a 72% full-year payout ratio.

Underlying earnings were US$12.4 billion, 20% above 2019. Net earnings were up 22% to US$9.7 million, reflecting $1.1 billion of impairments, most of which were taken in the first half of 2020. This compared to $1.7 billion of impairments in 2019. Underlying earnings per share rose 21% to 769.6 US cents per share. 

Rio Tinto ended the financial year with a strong balance sheet, including a $0.7 billion net debt, a decrease of $3 billion. This reflected the strength of free cash flow, partly offset by $6.3 billion of cash returns to shareholders in 2020.

“Safe and well-run operations, together with world-class assets, great people, capital discipline and a strong balance sheet, leave Rio Tinto well placed to generate superior returns for shareholders, invest in sustaining and growing our portfolio, and make a broader contribution to society,” said chief executive Jakob Stausholm. 

Fortescue Metals 

Fortescue was another miner smashing dividend records this reporting season. On Thursday, Fortescue reported a record half-year performance with a 93% increase in interim dividends.

Commenting on the half-year results, Fortescue CEO Elizabeth Gains said: “Fortescue’s performance for the first half of FY21 has been outstanding. Revenue of US$9.3 billion for the first half exceeded the prior comparable period by 44 per cent, with realised prices increasing by 42 per cent.”

Shipments, earnings, and operating cash flow for 1H FY21 surpassed any half year in Fortescue’s history. 

The metals giant reported net profit after tax (NPAT) of US$4.1 billion and earnings per share of US$1.33, an increase of 66% on the prior corresponding period. Net cash flow from operating activities was US$4.4 billion. Free cash flow was US$2.5 billion after investing $1.9 billion in capital expenditure.

The fully franked interim dividend of $1.47 per share represents an 80% payout of 1H FY21 NPAT. Fortescue has a commitment to shareholder returns targeting the top end of its dividend policy to pay out 80% of full-year NPAT. With 20% of NPAT available to fund future growth, the company intends to allocate 10% to fund renewable energy growth and 10% to fund other resource growth opportunities. 

Fortescue finished the half-year with net debt of US$110 million, including cash on hand of US$4 billion. The excellent operating performance in the first half combined with a continued focus on capacity optimisation has supported an increase in FY21 shipments guidance to 178–182mt. Full-year capital expenditure is expected to be in the upper end of the range of US$3 billion –US$3.4 billion.

Capital expenditure in the first half was US$1.9 billion, consisting of US$647 million in sustaining and operational development capital, US$58 million in exploration, and US$1.2 billion in major projects.

ASX dividend shares deliver 

ASX mining shares have been dividend stalwarts for some time now, but have outdone themselves this reporting season with record returns for shareholders.

The commodities boom is driving strong results for ASX miners, and many expect it to continue as the COVID-19 vaccine rolls out, which should result in a ramp-up in economic activity.   

More reading

• ASX 200 up 0.2%: ANZ and CSL impress, Fortescue declares huge interim dividend
• Oz Minerals (ASX:OZL) share price hits 13-year high as profit jumps 30%
• Fortescue (ASX:FMG) share price pushes higher after declaring huge dividend
• ASX 200 dips, EML soars after reporting, Appen sinks
• Rio Tinto (ASX:RIO) share price on watch after announcing special dividend

Motley Fool contributor Kate O’Brien owns shares of BHP Billiton Limited and Rio Tinto Ltd. 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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It certainly has been a positive day for the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price.

In afternoon trade, the banking giant’s shares are up 3.5% to $26.72.

This leaves the ANZ share price trading within sight of its 52-week high of $27.29.

Why is the ANZ share price charging higher?

Investors have been buying ANZ shares on Thursday following the release of its first quarter update this morning.

For the three months ended 31 December, the banking giant reported unaudited cash earnings from continuing operations of $1,810 million. This was an impressive 54% jump on the average of the last two quarters of FY 2020.

Also giving the ANZ share price a boost was news that the bank is reversing some COVID-19 provisions. Today’s update included a COVID-19 collective provision release of $173 million.

This represents ~10% of the $1,700 million set aside during FY 2020. Though, management may not be done there. At this point, it feels this release is prudent when balancing the improvement in the economic outlook at the end of the December quarter with the level of ongoing uncertainty.

This appears to hint that if things continue to improve, further releases could be made in the coming quarters.

How does this compare to expectations?

According to a note out of Goldman Sachs, ANZ’s cash earnings result was better than it was expecting. It notes that this was largely due to a significant outperformance in bad and doubtful debts.

The broker was also pleased to see that its pre-provision operating profit (PPOP) was running ahead of what its analysts were forecasting for the first half.

Another positive was the bank’s expenses, which were flat versus the second half quarterly average.

And finally, ANZ’s CET1 ratio of 11.7% is running well ahead of what Goldman is forecasting for the first half. It notes that this is being driven by better profitability and lower credit risk-weighted assets.

Is the ANZ share price in the buy zone?

Although the company is outperforming Goldman Sachs’ estimates, at this point, it still doesn’t see enough value in the ANZ share price to recommend it as a buy.

For now, the broker has retained its neutral rating and $24.43 price target.

Though, this could change in the coming days once the broker has had chance to fully digest the result.

More reading

• ASX 200 up 0.2%: ANZ and CSL impress, Fortescue declares huge interim dividend
• ANZ (ASX:ANZ) share price rises, Q1 profit surges 54%
• ANZ (ASX:ANZ) share price on watch after $1.8 billion Q1 cash profit
• 5 things to watch on the ASX 200 on Thursday
• Westpac (ASX:WBC) share price on watch as it delivers $2bn quarterly profit result

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

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Star Entertainment Group Ltd (ASX: SGR) shares have managed to stay out of the red today, despite the company reporting a 33.1% fall in profits. At the time of writing, the Star Entertainment share price is up 0.27% to $3.69.

Results impacted by COVID

Star Entertainment owns and operates a number of resorts and venues including The Star Sydney, The Star Gold Coast, and Treasury Brisbane. Considering the very physical nature of these businesses, social distancing restrictions and border closures have materially impacted patron volumes.

As a result, group revenue came to $749.9 million for the half-year, down 36.2%. Sydney venue earnings were significantly dampened by the patron cap per-area, no co-mingling, and caps on table utilisation. VIP revenues across Syndey, Gold Coast, and Brisbane were dismantled – all falling 94% or more.

Slot machine revenues appeared to be a saving grace for the company. Both Brisbane and Gold Coast revenues from the slots increased by 7% and 8% respectively.

Brisbane operations fared the best during the half as a result of fewer COVID-19 restrictions. Non-gaming revenues for the sunny city were down by only 15%, compared to 45% and 64% for Gold Coast and Sydney respectively.

Managing through the storm

The Star Entertainment share price is treading water today after management advised its prudent action during the half led to a 40% reduction in operating expenses. Both variable and fixed costs were reduced to weather impacted revenues.

The company plans to deleverage the business throughout FY21. Steps being taken include asset sales, capex reductions, and continuing the suspension of dividends.

Furthermore, $50 million in fixed costs are targeted to be saved as part of the plan. In the first half alone, 248 salaried roles have been removed.

Star Entertainment share price spotlight

As has been the case for many physical-based businesses, the Star Entertainment share price has taken a beating over the past year. While the S&P/ASX 200 Index (ASX: XJO) has fallen 3.5% during the last 12 months, Star Entertainment shares have fallen by more than 10%. 

The Star share price lost its sparkle from February 2020, once the implications of lockdowns became apparent. The share price went for a bungee jump, plummeting from $4.33, down to $1.53 in March only to spring back to $3.35 by June.

More reading

• Why the ANZ (ASX:ANZ) share price is storming higher today
• Why the LiveTiles (ASX:LVT) share price is tumbling 11% lower today
• The NRW Holdings (ASX:NWH) share price has plunged 16%. Here’s why
• Why the Woodside (ASX:WPL) share price is tumbling lower today
• The Perpetual (ASX:PPT) share price fell 7% after this announcement

Motley Fool contributor Mitchell Lawler 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.

The post Star Entertainment (ASX:SGR) share price rises despite 33% fall in profit appeared first on The Motley Fool Australia.

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The LiveTiles Ltd (ASX: LVT) share price has returned from its trading halt and is tumbling lower.

At one stage the intranet and workplace technology software provider’s shares were down as much as 11% to 26 cents.

The LiveTiles share price has since recovered some of this decline but currently trades 6% lower at 27.5 cents.

Why is the LiveTiles share price under pressure?

This morning the LiveTiles share price returned from its trading halt after it released an update which provides more colour on yesterday’s new contract announcement.

On Wednesday, LiveTiles revealed that it had secured a “record multi-million dollar deal with one of the largest healthcare companies in the US.”

However, no details were provided in respect to how many millions the contract was worth or who the contract was with. This appears to have caught the eye of the ASX Ltd (ASX: ASX), which prompted today’s update.

What was today’s update?

This morning LiveTiles stated: “Pursuant to ASX Listing Rule 3.1, LiveTiles confirms the customer is United Healthcare Group.”

According to the ASX, listing rule 3.1 states that “an entity must disclose all information concerning it that it becomes aware of from any source and of any character, if a reasonable person would expect the information to have a material effect on the price or value of its securities.”

In light of this, the company revealed what record multi-million dollar deal means to it.

It advised that the contract is for an initial and minimum term of three years, with a minimum contract value of A$3.0 million.

It does, however, have the potential to grow up to A$12.2 million over the life of the contract. This is based on the customer’s possible employee headcount growth over the next five years and the inclusion of additional products and services that may be required as the project evolves.

Management advised that there are no material conditions that need to be satisfied, nor is there other material information relevant to assessing the impact of the commercial agreement on the price or value of the company’s shares.

Judging by the LiveTiles share price today, some investors may have believed the contract was going to be even larger based on its first announcement.

More reading

• Why the LiveTiles (ASX:LVT) share price is rocketing 20% today
• Why Cann, Creso, LiveTiles, & New Corp shares are tumbling lower today
• Why the LiveTiles (ASX:LVT) share price is surging 17% higher today
• LiveTiles (ASX:LVT) shares placed in trading halt
• Why Bigtincan, Bubs, LiveTiles, & Treasury Wine shares are storming higher

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of LIVETILES FPO. The Motley Fool Australia has recommended LIVETILES FPO. 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 NRW Holdings Limited (ASX: NWH) share price is plunging today, down 16% at $2.35 in afternoon trading.

Let’s take a look at the mining and construction services provider’s results for the first half of the 2021 financial year ending 31 December.

What financial results did NRW Holdings report?

In this morning’s release, NRW reported a range of strong results. However, today’s sharp share price fall is possibly due to a sizable drop in profits in the half-year.

The positive results include record first-half revenue of $1.168 billion. That’s an increase of 44% from the previous corresponding period.

Earnings before interest, tax, depreciation and amortisation (EBITDA) also increased, up by 28% to $132.8 million compared to H1 FY20.

Profits, however, were down. The company reported NPATN (which incorporates earnings before amortisation of acquisition intangibles and non-recurring transactions costs at normal 30% tax rate) of $40.3 million. That’s down 12% from the $47.6 million reported in the prior corresponding period.

NRW reported a cash balance of $171.4 million and said it had reduced its net debt by $43.2 million to $96.5 million.

The company also confirmed it was moving to compulsory acquisition to take over Primero Group Ltd (ASX: PGX).

Management comments

Looking ahead, NRW CEO Jules Pemberton said:

Growth is expected to continue as a result of increasing expenditure on infrastructure projects at state and federal level, demand for commodities remaining strong and as a consequence of the recently announced Primero acquisition…

The addition of Primero to the MET business represents a further diversification of our strategic platform to offer clients continuity of services across the whole lifecycle of resource projects – from early planning, design, development, construction to operations and maintenance.

Our exposure and now strengthened capability to participate in the future energy minerals and renewables sectors is also set to grow through Primero’s existing client base…

NRW will pay an interim dividend of 4 cents per share, up 60% from the first half of the 2020 financial year.

NRW share price snapshot

After being savaged during the wider COVID-19 market selloff last year, NRW shares are up 114% from their 19 March 2020 lows. Even with that gain, shares are still down 19% over the past 12 months. By comparison, the All Ordinaries Index (ASX: XAO) is down 1% over that same period.

Year-to-date, the NRW share price is down 21%.

More reading

• Why Bellevue Gold, Coles, NRW, & Perpetual shares are trading lower today
• ASX 200 up 0.2%: ANZ and CSL impress, Fortescue declares huge interim dividend
• Why the Asaleo Care (ASX:AHY) share price is up 5% today
• NRW (ASX:NWH) share price jumps on acquisition update
• The Rhipe (ASX:RHP) share price slides despite strong sales growth

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

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The Woodside Petroleum Limited (ASX: WPL) share price has come under pressure today following the release of its full year results.

At the time of writing, the energy producer’s shares are down 3% to $25.13.

How did Woodside perform in FY 2020?

For the 12 months ended 31 December, Woodside delivered record full year production of 100.3 million barrels of oil equivalent (boe). It also had its best-ever safety performance despite the difficult external conditions. The company reported a total recordable injury rate of 0.88 per million work hours.

However, due to a 33% reduction in the volume weighted average price of its products to US$32 per boe, the company reported a 26% decline in operating revenue to US$3,600 million.

Things were even worse on the bottom line due to previously announced non-cash impairments and onerous contract provisions. For FY 2020, Woodside recorded a net loss after tax of US$4,028 million.

On an underlying basis, net profit after tax came in at US$447 million. This was down 58% year on year from $1,063 million in FY 2019.

In light of this poor form, the company declared a final dividend of 12 U.S. cents per share. This brought its full year dividend to 38 U.S. cents per share, which is also down 58% year on year.

Woodside’s CEO, Peter Coleman, commented: “Strong production outcomes were delivered even though we weathered a direct hit from Tropical Cyclone Damien in February, followed by operational challenges posed by the pandemic. The outstanding performance of our base business in 2020 was reflected in our low unit production cost of US$4.8 per barrel of oil equivalent and the high reliability of our operated LNG facilities.”

Outlook

Also potentially weighing on the Woodside share price today could be its guidance for the year ahead.

Management expects the company’s production to fall from 100.3 Mmboe in FY 2020 to between 90 and 95 MMboe in FY 2021. This is partly due to KGP LNG Trains 2 and 4 each being shut down for approximately one month.

The company is also forecasting an increase in investment expenditure to between US$2,900 million to US$3,200 million. This compares to US$2,000 million in FY 2020.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Woodside (ASX:WPL) share price on watch after latest oil market forecasts
• ASX 200 Weekly Wrap: ASX cools on earnings reality check
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Thursday

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

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The Perpetual Limited (ASX: PPT) share price is down just over 7% to $31 at midday today. This comes after the financial services provider released its first half of 2021 results.

Let’s review how the business and the Perpetual Limited share price have performed over the six-month period.

Perpetual Limited’s first half 2021 highlights

Perpetual Limited reported $89.2 billion in total assets under management.

For the half-year ended 31 December 2020, Perpetual reported a net profit after tax (NPAT) of $29.2 million. Indeed, this is a significant drop compared to the NPAT for the half-year ended 31 December 2019 of $51.6 million.

Perpetual reported an underlying profit after tax of $52.6 million for the half-year ended 31 December 2020. Similarly, down slightly compared to $58.9 million for the half-year ended 31 December 2019.

In contrast, 1H21 operating revenue was up 10% on the pcp to $280.6 million. In this case, growth was predominantly driven by the international asset management division and completed acquisitions. 

The company Directors resolved to pay a fully franked interim dividend of 84 cents per share. Down compared to $1.05 per share paid during the prior comparative period (pcp).

CEO speaks about performance

Commenting on the half-year performance, CEO and Managing Director, Mr. Rob Adams, said: 

“We continue to make strong progress in executing our strategy. Our Asset Management teams have remained true-to-label, delivering solid performance for the period across all capabilities, including Australian equities in particular. Our first half was bookended by the completion of our strategic acquisitions of Trillium and then a 75% interest in Barrow Hanley. These acquisitions combine with the successful build-out of our US distribution team, to be transformational milestones for Perpetual as we continue to build world-class investment and distribution capabilities to provide greater diversification by business line, geography and asset class.”

The Perpetual Limited share price at a glance

Year-to-date, the Perpetual Limited Share price is down 3.68%. However, an institutional share placement and share purchase plan was implemented during the period. Thus resulting in $270.1 million (net of costs) in proceeds.

The company’s market capitalisation is $1.9 billion with 56.5 million shares outstanding.

More reading

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• Real reporting season surprise isn’t about profits but dividends
• Top ASX shares to buy in February 2021
• Why Afterpay, Cleanaway, Mosaic Brands, & Perpetual shares are dropping lower
• Why the Perpetual (ASX:PPT) share price is falling today

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

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