The markets are facing uncertainty following tariff quagmire. These growing companies to invest in, however, remain defiant offering an opportunity.
Karoon Energy Ltd (ASX: KAR)
Karoon Energy Ltd (ASX: KAR), on 02 April 2025, successfully completed the well intervention for SPS-88 in the Bauna Project, with production resuming on March 28, 2025, ahead of schedule. The well is producing around 2,000 barrels of oil per day (bopd) and is gradually being optimized. Following the annual maintenance shutdown from March 7-27, production at Bauna has ramped up to approximately 26,500 bopd, exceeding pre-shut-in levels due to the resumption of SPS-88. The FPSO’s efficiency, bolstered by recent maintenance activities, is expected to improve further, aiming for a 90-95% efficiency target. The flotel, supporting additional maintenance, will remain until April 6, 2025, with more work planned through 2026.
For the full year 2024, Karoon reported an underlying net profit after tax of US$214 million, a 3% increase from 2023. This was driven by a full year of production from the Who Dat project, despite lower Bauna output and higher finance costs. Statutory NPAT fell 39% to US$127.5 million due to reduced production at Bauna and non-cash adjustments. Production costs rose slightly to US$13.6 per barrel of oil equivalent (boe), mainly due to fixed costs at Bauna. The company declared a final dividend of 5.0 Australian cents per share, totaling 9.496 cents for 2024, alongside a US$25 million share buyback, reinforcing its commitment to shareholder returns.
The company aims to optimize production at Bauna and Who Dat while enhancing its resource portfolio. The acquisition of the Bauna FPSO is progressing, with the transaction expected to close in April 2025. This move is expected to improve FPSO efficiency, reduce operational costs, and extend Bauna's life. The company maintains a robust balance sheet, with US$681 million in liquidity, supporting ongoing investments, dividends, and buybacks in line with its capital returns policy.
Commonwealth Bank of Australia (ASX: CBA)
Commonwealth Bank of Australia (ASX: CBA), primarily focused on retail and commercial banking services in Australia, also operates in New Zealand through its subsidiary, ASB Bank. For the first half of 2025, ASB reported a 1% increase in its cash net profit after tax, reaching $716 million, with statutory NPAT up 2% to $763 million. This growth was driven by a 4% rise in operating income from increased lending volumes and effective interest rate hedging, though partially offset by an 8% rise in operating expenses. Home lending grew 5%, while business and rural lending increased by 2%. Return on equity slightly declined due to higher capital requirements, with the total capital ratio rising to 16.3%.
The bank has been actively supporting New Zealand’s housing market, with significant reductions in fixed home loan rates—1.65% for one-year terms and 1.35% for six-month terms since July 2024. This has provided much-needed relief for Kiwi borrowers, especially as many are on fixed mortgages that will soon roll over to lower rates. Over the half-year, ASB helped over 23,000 customers with home-related transactions, including nearly 5,500 first home buyers. The bank committed $165 million through its Accelerated Housing Fund to support around 450 new homes for community, affordable, and Māori housing, along with $34 million dedicated to Māori-led housing developments.
ASB also focused on driving economic growth through business and rural lending, providing over $1 billion to new customers. Its Clean Tech and ASB ACCESS food and fibre funds, totaling $50 million, are aimed at supporting exporters and innovators. The bank is also investing $140 million this year to combat fraud and cybercrime, having already made significant strides in reducing customer losses despite an increase in fraud cases. Furthermore, ASB’s digital tools, like Goal Planner and Support Finder, have been widely used, with the bank recognized as the Best Digital Bank for the third consecutive year.
(Source: Company’s Report)
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