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Summary
- While the overall market performance was decent during the day’s trading session, there were a few stocks which were under pressure.
- BHP shares ended the day’s trade 2.312% lower with its shares going ex-dividend today. The cash dividend of US$1.1, to be paid on 22 September 2020 by BHP Group has dropped over 15% on pcp.
- Spark Infrastructure tumbled over 6% with its shares also trading ex-dividend.
- Ampol shares are under pressure after the Company received notice proceedings by Chevron.
The performance of the market by the end of the day’s trade on 3 September was moderate as most sectors on ASX settled in the green zone. Real estate, banks, industrials, and healthcare industries were amongst the top-performing sectors on the day, delivering growth of over 1%. On the other hand, there were few sectors which could be closed in the red zone, but the drop was marginal. These sectors include Information Technology, Materials, Metals and Mining, Resources and Utilities.
At market close, the benchmark index S&P/ASX 200 was up 0.81% and settled at 6,112.6. While the market performed decently, there were a few stocks which experienced pressure during the trading session.
In this article, we will look at why three ASX-listed stocks were under pressure – BHP, SKI and ALD.
BHP Group Limited (ASX:BHP)
BHP Group Limited belongs to the metals and mining sector and is engaged in the exploration, production, and processing of minerals plus hydrocarbon exploration, production, and refining.
BHP share price fell 2.312% to close at A$37.610. The Company has a market capitalisation of A$113.42 billion, with 2.95 billion shares outstanding.
On 03 September 2020, BHP Group was trading ex-dividend as updated in the announcement related to dividend/distribution. For information, the stocks trade ex-dividend on or after the ex-dividend date. In case any market participant buys the shares of the company trading ex-dividend, they are not entitled to the next dividend payment.
A cash dividend of US$1.1 will be paid to the shareholders on 22 September 2020. This value represents a drop of 15.38% from the last dividend payment.
A Glance at FY2020 Highlights (period ended 30 June 2020):
- Underlying EBITDA for FY2020 declined 5% to US$22.1 billion.
- Revenue from continuing operations dropped 3% to US$42,931 million.
- Profit after tax from continuing operations (attributable to BHP Group members) also slipped 8% to US$7,956 million.
Spark Infrastructure Group (ASX:SKI)
Spark Infrastructure Group is the leading owner of a diversified portfolio of quality essential service infrastructure in Australia.
SKI shares are trading ex-dividend on ASX. As a result, the share price experienced a significant drop of 6.061% and settled at A$2.170 by the end of the day’s trade. SKI has a market capitalisation of A$3.98 billion and around 1.72 billion outstanding shares. Spark Infrastructure Group was amongst the worst performing stocks for the day.
Recent Development:
Recently, Spark Infrastructure on 28 August 2020, confirmed that TransGrid established A$800 million in new syndicated bank debt facilities. It comprises of A$600 million 3-year capex facility along with A$200 million 7-year term debt facility.
The new facilities combine highly competitive financing terms & further funding capacity, with structural flexibility to aid delivery of TransGrid’s future capital expenditure program including major projects.
A Glance at 1H FY2020 Result:
- Total revenue increased to A$684.7 million from A$678.9 million in 1H FY2019.
- EBITDA increased from A$417.8 million soared to A$432.2 million.
- NPAT improved from A$84.5 million to A$92.7 million.
ALSO READ: 5 ASX Utilities Stocks under Spotlight: SKI, AST, MCY, MEZ and CEN
Ampol Limited (ASX:ALD)
Ampol Limited, formerly known as Caltex Australia Limited, is an Australian company and a leader in transport fuels. The Company is into the business of purchase, refining, distribution, and marketing of petroleum products and the operation of convenience stores.
ALD share price was down 1.091% to close at A$26.300. The Company has a market capitalisation of A$6.64 billion, with 249.71 million shares outstanding.
The shares have been under pressure in the past couple of days after the Company received notice proceedings issued in the Federal Court of Australia by Chevron. Ampol has been alleged for breaches of the trademark licence agreement under which, the Company is licenced to use the ‘Caltex’ and related trademarks in the course of its business & violation of those trademarks.
These breaches and infringements took place as a result of the use of non-compliant signage at 177 Ampol sites along with an unspecified count of third-party sites operational under a sub-licence from Ampol. The proceedings require an order to remove or rectify the signage and damages.
A Quick Look at 1H FY2020 Result:
On 25 August 2020, Ampol Limited announced its 1H FY2020 result for the period ended 30 June 2020. The Company reported a strong performance in Convenience Retail. Its Lytton and jet demand got significantly impacted by COVID-19.
- Revenue from the ordinary activities declined 22% to A$8,055 million.
- Replacement Cost of Sales operating profit (RCOP) EBIT of the Group fell by 13% to A$221 million.
- RCOP NPAT of the Group during the period was A$120 million, down 11% on pcp.
- ALD declared a dividend of 22 cents for 1H FY2020, down 22% on pcp.
