Horizon Oil Limited (ASX: HZN)
Horizon Oil Limited (ASX: HZN), on 24 March 2025, announced a major acquisition of a 7.5% interest in the Sinphuhorm gas field and a 60% interest in the Nam Phong gas field in Thailand. This move provides Horizon with access to low-risk, producing gas assets that offer a stable and predictable cash flow. The deal is valued at US$30 million, with the potential for up to US$7.5 million in contingent payments over the next six years. The company expects minimal impact on its existing cash reserves and has secured funding through a credit-approved amendment to its existing debt facility. These acquisitions will help Horizon sustain its capital distribution strategy while diversifying its production base.
The company announced impressive revenue and EBITDAX figures for the half-year. The production and sales volumes for the period totaled 839,277 boe, and revenue reached US$55.8 million. The company’s EBITDAX stood at US$29.4 million, and cash operating costs were around US$23.37/boe. Horizon’s cash reserves at the end of the period were US$47.3 million, despite paying a dividend of US$16.6 million in October 2024. This stable cash flow is expected to continue, with the company focusing on growing its cash reserves while maintaining constant production.
Horizon Oil announced an interim dividend of AUD 1.5 cents per share to be paid on 24 April 2025, following an October 2024 payment of the same amount as a final dividend. Its good cash position and rising output from its holdings guarantee it to keep on issuing these recurring dividends while it makes investments in expansion opportunities such as its latest buyout in Thailand. Horizon's firm production prospects stretch into the future decade, underpinning its continued dividend policy.
Lindsay Australia Ltd (ASX: LAU)
Lindsay Australia Ltd (ASX: LAU), on 21 February 2025, delivered a decline in underlying EBITDA for the first half of FY25, down 9.2% to $47.3 million. The company saw strong performance from its Rural division, which achieved a 13.3% increase in EBITDA due to higher sales and effective cost management. Revenue for the group reached $435.7 million, an increase of 4.3%, driven by strong results in Rural and an additional month of trading in the Hunter division. However, the Transport division faced challenges, including margin pressure and higher costs, leading to a slight decline in revenue and a 7.1% drop in EBITDA.
Lindsay's financial stability remains strong, and the company announced a fully franked interim dividend of 2.3 cents per share, which is a 9.5% increase from the previous year. The dividend will be payable on April 17, 2025, to shareholders who are on the record as of April 4, 2025. This increase reflects the company’s ongoing promise to returning value to shareholders, even amid challenging market conditions. The strong balance sheet ensures that Lindsay can continue to make key investments and support growth opportunities, despite the ongoing headwinds in the transport and logistics sector.
Lindsay is focused on expanding its network and strengthening operations. The company is investing heavily in fleet, infrastructure, and facility upgrades, with a $22.2 million spent in the first half of FY25. This includes a key acquisition of GJ Freight, which will expand Lindsay’s presence in South-Western Australia and diversify its service offerings. The company is also working on establishing transport and packaging services in the Goulburn Valley, aiming for growth in the region with limited capital investment. Even with operational challenges, Lindsay’s strategy continues to be centered on supportable growth and capitalizing on acquisition opportunities.
(Source: Company Reports)
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