US inflation data came in at 9.1%, above expectations, so the market is pricing in more rate rises from the fed which generally means less oil demand.
Yep, fantastic update.
Profits should be much higher in Q2 I think. The oil price has higher and refinery margins have been higher.
Why not just pay a $100m special dividend, if they want to return it to shareholders? The proposed dividend increase is miserly, and while I don't mind buybacks instead if they actually happen, the wording ("up to $100m" doesn't mean $100m) suggests they might try to find a way to weasel out of it. Strong cash generation is pointless if they just leave it in the bank.
Their cash generation is solid, a $63m increase in 5 months, after any capex, with disruptions to production and the oil price averaging well below the current spot price is a nice result, and I don't care about what happened last year.
I'm just not sure about management's capital allocation decisions. They clearly want to build an empire through acquisition if they can, but sellers are not going to let their assets go cheaply in the current environment, and buying production at the top of the cycle could destroy a lot of value.
Maybe once the Maari acqusition goes through they'll be more willing to give money back to shareholders.
Certainly a nice surprise this morning.
Another good acquisition, looks like a nice cheap multiple.
Stop worrying and enjoy the dividends.
I think it's just the risk of recession in general. If people are struggling with food and gas bills they'll have less money for space marines.
Yeah I don't see how the Ukraine situation affects us except with regards to a general economic slowdown. Around £70 has to be a buying opportunity. P/E is about 18 with a 3.2% dividend yield, GAW usually trades at a higher rating than this.
A week after release, Warhammer 3 is still number 2 in the steam top sellers list and number 3 in the global top sellers list.
Return on equity is 25%. What on earth are you talking about.
Surprised JSE hasn't moved.
That's because BP's investment in Russia take the form of a joint venture with Rosneft. They're operated by Rosneft not BP.
Half of BP's oil reserves are in Russia and a third of their profits come from Russia. Shell have a few investments but nothing major compared to the market cap as far as I am aware.
Tapis premium has shrunk, it's only about $1 at the moment.
Yeah, they hedge most of their production, so sudden spikes or drops in the gas price don't affect them much.
Very nice update. The combination of quality and value is pretty much unmatched as far as I can tell. The issue is obviously cyclicality (I remember that summer where sales were low due to it being unusually rainy) but there are significant long term growth drivers as well.
China will always be an issue because Somero's products are ssuited to a high wage environment where being efficient with labour is important. In a country with near-infinite cheap labour they don't really need automation. The company is doing the right thing by not investing into the region. Maybe in a decade or two things will change.
Brent just hit $90.
Also with worth noting the cost pressure on freight and currency movements should be temporary.
I think results are better than they look. H1 last year was exceptional due to the factory shutdown in Q4 the previous year. H2 last year had operating profit of 60m so they've smashed that. The business didn't have much of a seasonal split pre-covid.