BHP Billiton Limited (BHP):
BHP’s $US10.5 billion ($14.2bn) US onshore shale oil and gas sale to oil giant BP appears to have achieved the rare feat of pleasing analysts and investors of both stocks in the very short term. For BHP shareholders, the company has achieved a strong price in today’s market for its assets (despite a net $US20bn cash burn over the past seven years). The sale proceeds go straight back to shareholders. It has also boosted groupwide return on capital employed from 13 per cent to 16 per cent and allowed management to focus on boosting performance of its remaining assets.
Fairfax Media Limited (FXJ) & Nine Entertainment Co Holdings Ltd (NEC):
Fairfax Media plans to sell itself to Nine as part of a $2.1 billion cash-andstock takeover in a move that would create a $4.2 billion company. The combined company, to be called Nine, will be headed by Nine CEO Hugh Marks. The 177-year-old Fairfax family name looks set to disappear. Under the deal, to be reviewed by the competition watchdog, Nine shareholders will retain 51.1 per cent of the combined entity; Fairfax shareholders will keep the rest. Three current Fairfax directors will be invited to join the board of the combined business, which will be chaired by Nine Chairman, Peter Costello, and include two further current Nine directors. The takeover is expected to deliver annualised pro-forma cost savings of at least $50m which will be fully implemented over two years.
Freelancer Ltd (FLN):
Shares in ASX-listed online jobs marketplace Freelancer plummeted by more than 12 per cent, after the company’s revenue fell 7 per cent year-on-year. The company posted its half-yearly financial results Tuesday morning, showing the company generated net revenue of $24.7 million for the half-year to June 31 2018, down 7 per cent from $26.6m a year earlier. The results sent shares down 12 per cent to 52 cents per share, before they recovered to be at 55 cents at 10.22 AEST. Freelancer boss Matt Barrie said the poor result was largely due to lower membership revenues, which had been shifting towards lower value plans despite the number of users on memberships being at an all time high. Total operating expenses came in at $22.1m for H1FY18, down 6 per cent year-on-year, with the company saying it maintained tight cost control across all of its operating expense categories.
Infigen Energy Ltd (IFN):
Wind farm operator Infigen Energy expects to book a 7 per cent revenue rise when it releases its full year results in August. In unaudited results released this morning, the company (IFN) said it expects its full year revenue to be about $210.1 million, up from 196.7m for the full year last year. For the June quarter, the company booked a 35pc rise in revenue to $43.4m while production generated hiked up 36pc. Production sold, after material losses, lifted 37pc. The company, which has six wind energy sites as well as several wind and solar sites in development, will release its full year results on August 27. At about 10.40am (AEST), Infigen shares were trading 0.78 per cent lower at 64 cents.
Mcgrath Ltd (MEA):
Real estate agency McGrath has said it expects to recognise an impairment charge of about $35 million in its full-year results against its company-owned sales segment. The assets being impaired were mainly brought onto the balance sheet as part of agency acquisitions in 2015, McGrath said in a statement. McGrath said it expected to report 2017/18 earnings in line with its previous guidance at about $1 million when it releases its full-year results on August 20. MEA last traded flat at 38c.
Metals X Limited (MLX):
Diversified miner Metals X is raising $50 million of capital through Citi, Macquarie Capital and Canaccord. The funds will be used to boost the cash resources of Metals X, as its flagship Nifty Copper Operation continues to ramp up towards the targeted production rate of 40 kilo tonnes per annum of copper concentrate. The capital will also help to accelerate the Nifty regional exploration in the highly prospective Paterson Province and increase targeted regional exploration at Renison tin operations in Tasmania and advance activities at the company’s development projects, including the Maroochydore Copper Project, Renison Tailings Retreatment Project and the Wingellina Nickel-Cobalt Project. The cash will also be used to fund general working capital purposes. The raise is by way of a placement where 76.9 million shares will be sold at 65 cents each. The price represents an 8.5 per cent discount to the company’s last closing share price of 71c.
Telstra Corporation Ltd (TLS):
Telstra chief executive Andy Penn says the cleanout and rejuvenation of his executive ranks gives the telco the right mix of skills and experience needed to realise his turnaround strategy and capitalise on the rollout of 5G. The under-pressure Mr Penn unveiled two headline hires – outgoing SBS managing director Michael Ebeid and Indian telco Reliance Jio executive Nikos Katinakis – and showed four members of his executive team the door as well as handing more responsibility to Robyn Denholm, who will take over as chief financial officer and head of strategy. Telstra shareholders reacted positively to the changes, with shares finishing up 1.8 per cent to $2.81.
Woolworths Group Limited (WOW):
Woolworths is acting quickly to secure its position as the nation’s largest online drinks retailer, as well as bolster its defences against incursions by Amazon, by creating an online portal that will support its flagship Dan Murphy’s chain and eventually roll out to BWS and its Langton’s fine wine auction house. Woolworths is following a well-worn path by other retailers looking to safeguard and grow their online presence as giants such as Amazon or eBay swoop in to win suppliers and shoppers with their powerful online marketplaces.
(Source: AIMS)
BHP’s $US10.5 billion ($14.2bn) US onshore shale oil and gas sale to oil giant BP appears to have achieved the rare feat of pleasing analysts and investors of both stocks in the very short term. For BHP shareholders, the company has achieved a strong price in today’s market for its assets (despite a net $US20bn cash burn over the past seven years). The sale proceeds go straight back to shareholders. It has also boosted groupwide return on capital employed from 13 per cent to 16 per cent and allowed management to focus on boosting performance of its remaining assets.
Fairfax Media Limited (FXJ) & Nine Entertainment Co Holdings Ltd (NEC):
Fairfax Media plans to sell itself to Nine as part of a $2.1 billion cash-andstock takeover in a move that would create a $4.2 billion company. The combined company, to be called Nine, will be headed by Nine CEO Hugh Marks. The 177-year-old Fairfax family name looks set to disappear. Under the deal, to be reviewed by the competition watchdog, Nine shareholders will retain 51.1 per cent of the combined entity; Fairfax shareholders will keep the rest. Three current Fairfax directors will be invited to join the board of the combined business, which will be chaired by Nine Chairman, Peter Costello, and include two further current Nine directors. The takeover is expected to deliver annualised pro-forma cost savings of at least $50m which will be fully implemented over two years.
Freelancer Ltd (FLN):
Shares in ASX-listed online jobs marketplace Freelancer plummeted by more than 12 per cent, after the company’s revenue fell 7 per cent year-on-year. The company posted its half-yearly financial results Tuesday morning, showing the company generated net revenue of $24.7 million for the half-year to June 31 2018, down 7 per cent from $26.6m a year earlier. The results sent shares down 12 per cent to 52 cents per share, before they recovered to be at 55 cents at 10.22 AEST. Freelancer boss Matt Barrie said the poor result was largely due to lower membership revenues, which had been shifting towards lower value plans despite the number of users on memberships being at an all time high. Total operating expenses came in at $22.1m for H1FY18, down 6 per cent year-on-year, with the company saying it maintained tight cost control across all of its operating expense categories.
Infigen Energy Ltd (IFN):
Wind farm operator Infigen Energy expects to book a 7 per cent revenue rise when it releases its full year results in August. In unaudited results released this morning, the company (IFN) said it expects its full year revenue to be about $210.1 million, up from 196.7m for the full year last year. For the June quarter, the company booked a 35pc rise in revenue to $43.4m while production generated hiked up 36pc. Production sold, after material losses, lifted 37pc. The company, which has six wind energy sites as well as several wind and solar sites in development, will release its full year results on August 27. At about 10.40am (AEST), Infigen shares were trading 0.78 per cent lower at 64 cents.
Mcgrath Ltd (MEA):
Real estate agency McGrath has said it expects to recognise an impairment charge of about $35 million in its full-year results against its company-owned sales segment. The assets being impaired were mainly brought onto the balance sheet as part of agency acquisitions in 2015, McGrath said in a statement. McGrath said it expected to report 2017/18 earnings in line with its previous guidance at about $1 million when it releases its full-year results on August 20. MEA last traded flat at 38c.
Metals X Limited (MLX):
Diversified miner Metals X is raising $50 million of capital through Citi, Macquarie Capital and Canaccord. The funds will be used to boost the cash resources of Metals X, as its flagship Nifty Copper Operation continues to ramp up towards the targeted production rate of 40 kilo tonnes per annum of copper concentrate. The capital will also help to accelerate the Nifty regional exploration in the highly prospective Paterson Province and increase targeted regional exploration at Renison tin operations in Tasmania and advance activities at the company’s development projects, including the Maroochydore Copper Project, Renison Tailings Retreatment Project and the Wingellina Nickel-Cobalt Project. The cash will also be used to fund general working capital purposes. The raise is by way of a placement where 76.9 million shares will be sold at 65 cents each. The price represents an 8.5 per cent discount to the company’s last closing share price of 71c.
Telstra Corporation Ltd (TLS):
Telstra chief executive Andy Penn says the cleanout and rejuvenation of his executive ranks gives the telco the right mix of skills and experience needed to realise his turnaround strategy and capitalise on the rollout of 5G. The under-pressure Mr Penn unveiled two headline hires – outgoing SBS managing director Michael Ebeid and Indian telco Reliance Jio executive Nikos Katinakis – and showed four members of his executive team the door as well as handing more responsibility to Robyn Denholm, who will take over as chief financial officer and head of strategy. Telstra shareholders reacted positively to the changes, with shares finishing up 1.8 per cent to $2.81.
Woolworths Group Limited (WOW):
Woolworths is acting quickly to secure its position as the nation’s largest online drinks retailer, as well as bolster its defences against incursions by Amazon, by creating an online portal that will support its flagship Dan Murphy’s chain and eventually roll out to BWS and its Langton’s fine wine auction house. Woolworths is following a well-worn path by other retailers looking to safeguard and grow their online presence as giants such as Amazon or eBay swoop in to win suppliers and shoppers with their powerful online marketplaces.
(Source: AIMS)
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