Investment Matters

Company News

Origin Energy (positive impact) held its annual general meeting on Wednesday. Strong field performance has led to an upgrade in expected production to 690-710 PJ (from 680-700 PJ).  Furthermore, the company has revised down the range for its breakeven cost per barrel to US$31-34 from US$33-36. The company also updated the market with regards to its progress at its highly prospective Beetaloo asset, with drilling results expected in Q4 FY2020 for Kyalla and drilling expected to commence at Velkerri shortly after.

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Coronado Resources (negative impact) updated the market with respect to its guidance for FY20 (the financial year ending 31 December 2019).  Seaborne metallurgical coal prices have continued to weaken, with reduced demand from the key US export markets of Europe and Brazil due to weak industrial growth. Furthermore, the company has been impacted by continuing trade negotiations and the re-establishment of import quotas at some Chinese ports.  Operating costs are expected to be at the top of the guidance range, with revenues 3% lower (due to both a reduction in saleable production and realised prices).  The company has subsequently revised its operating profit guidance to below the lower bound of its previously guided range (EBITDA of $687 to $737m).

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Here, There and Everywhere (negative impact) gave an update with respect to trading conditions during the current quarter.  In line with the broader advertising market, the company has seen weakness in October, with revenues continuing to decline on a year-on-year basis but improving relative to the September quarter.  We met with the company earlier this week and have comfort in its strategy, transition to alternative formats and the value of its non-audio investments.