Things to know about Qantas Airways Limited, Origin Energy Limited and Prime Media Group

Qantas Airways Limited

Rising competition and weakening domestic demand posed pressure on topline: Qantas Airways Limited (ASX: QAN)reported a weak preliminary first quarter of financial year 2017 results. The group’s revenues fell 3% in revenue on the back of rising competition on international routes coupled with weak domestic demand in the first two months of the year. But, given their cost efforts from Qantas Transformation program and subdued fuel prices, QAN forecasted underlying profit before tax to be in the range of $800 million to $850 million for the first half. The group’s unit revenue (RASK) fell 5.5% during the quarter from same period of last year. QAN’s weak International RASK performance is expected to continue even in the second quarter. The group reported a buy-back of up to $366 million of shares, while finished $141 million of the buy-back up to October 26, 2016, acquiring 44,187,008 shares.

Passenger Traffic Highlights (Source: Company Reports) 

Origin Energy Ltd

Deliver strong production in September quarter: Origin Energy Ltd (ASX: ORG) recently reported that their Australia Pacific LNG satisfies Train 1 project finance test and got US$5.1 billion (60 per cent) of shareholder guarantees post the successful first production train. The group also reported a strong September 2016 quarter, wherein the production surged 55% year on year (yoy) to 74.2 PJe as compared to prior corresponding quarter and 8% over earlier quarter. Accordingly, the top line surged 91% yoy to $429.7 million and 32% against the prior quarter. APLNG project witnessed production of the first cargo2 from Train 2 and finished the 120-day Train 1 operational lenders test, with all requirements met or exceeded. Overall, 19 cargoes were shipped from APLNG facility on Curtis Island, predominantly to Sinopec and Kansai. As per the Queensland Gas project highlights wherein the group has 16.74% interest, the Dunadoo East?1 near field exploration well was drilled to test a potential continuation of regional sand trends subsequent to recent successful drilling in the Dunadoo, Coolah and Durham Downs fields. With regards to the South Australian Gas project wherein Origin has 13.19% interest, the Big Lake?137 well was cased and suspended as a future Permian gas producer. 

 
ORG production highlights (Source: Company Reports) 

Prime Media Group

Improving advertising revenue: Prime Media Group Limited (ASX: PRT) is up 9.1% on November 07, 2016 and had reported that its overall advertising revenue surged 16% yoy in first quarter of 2017 from three total regional markets of New South Wales and Victoria. Based on SMI data, Prime’s national agency revenue share peaked at 49.5% during the quarter, post a successful Olympic broadcast. Competitors changing affiliations since July also contributed to the group’s performance during the quarter. On the negative side, the group expects continuation of ongoing decline in regional viewership, especially from viewers aged 25-54, which declined 9.0% against the same quarter of last year. The group forecasts its core net profit after tax to be in the range of $15.3 million and $16.3 million for the half-year to 31 December 2016. The group is set to hold its AGM on November 22, 2016.

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