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Record profits and losses on show in earnings results

New Zealand's main share index dipped slightly after corporate earnings reports put the pandemic’s winners and losers on display. ANZ Bank chalked up record home loans, while Auckland International Airport had its first underlying loss since 1998.

Thursday, February 18th 2021, 7:14PM

by BusinessDesk

The S&P/NZX 50 Index fell 40.37 points, or 0.3%, to 12,633.60. Within the index, 29 stocks fell, 16 rose and five were unchanged. Turnover was $128.9 million.

While the index rose 14% during 2020 amid the pandemic, the gains were not spread evenly across the market. Some stocks, particularly those exposed to travel, are yet to recover from the crisis.

Air New Zealand led the market lower today, falling 3.1% to $1.55, after Auckland airport reported its first loss and threw cold water on any expectations of an imminent recovery. 

Chief executive Adrian Littlewood said the timing of any recovery remains uncertain and he doesn’t expect material quarantine-free, two-way Tasman travel during the remainder of the 2021 financial year.

The airport reported a net underlying loss after tax of $10.5 million for the six months to Dec 31 compared to a $139.9m profit in the same period a year earlier. Its shares fell 1% to $6.90.

Casino operator SkyCity Entertainment is another firm that took the covid lockdowns on the chin. Its net profit for the six months to December 2020 was down 76.1% after tax for the six months to December 2020, to $78.4 million from $328m.

The fire at its convention centre at the end of 2019 also weighed on earnings, although investors looked through the result and its share price rose 0.4% to $2.88.

Meanwhile, ANZ Bank chalked up record home loans in NZ during the December quarter, the bank's Australian parent said in a trading update.

The Australian bank said net profit for the quarter was A$1.62 billion, up from a quarterly average of A$773m in the same quarter a year earlier and A$1.02b quarterly average in the March quarter last year.

Its shares climbed 2.9% to $28.63 on the NZX, followed by Westpac Bank shares which also rose 2.9% to $26.27.

Another covid winner, EBOS saw its shares continue to rise, up 0.7% to $29.30 after it reported a strong result yesterday. 

Forsyth Barr analyst Chelsea Leadbetter said the pharmaceutical and pet food company was a “quality business with an impressive track record of execution, a positive growth outlook”.

Forsyth Barr also offered a favourable review of NZX’s earnings result saying its guidance “appears conservative”.

Analyst Jamie Foulkes forecast earnings at $35m but said there was potential for further upside as the business was building momentum. Its share price rose another 1% to $2.02

Skellerup's shares rose 2.5% to $4.15, after it lifted its first-half net profit 61% and upgraded its guidance for the full year. It is now expecting net profit to come in between $33m and $37m, up from $30m-to-$25m.

The rubber products company's net profit of $19.5 million for the six months ended Dec. 31 compared with $12.1m in the same six months a year earlier.

Tech components manufacturer Rakon continued to rally, up another 7% to 92 cents today, after it announced last week it had secured “significant orders” including from a new multi-national customer.

Rakon expects these orders will increase its revenue in the 2022 financial year by at least 20%. Its share price has jumped a similar amount, up 19.4% since the announcement.

NZX’s regulatory arm suspended QEX Logistics from trading after all its independent directors resigned. The company also revealed it had failed to meet debt repayments.

The New Zealand dollar fell below 72 US cents on Wednesday, following weakness in equities markets and a surprise uptick in key US economic data. American retail sales surged 5.1% in January, well beyond the expected 1%.

The kiwi dollar was trading 71.84 US cents at 5pm in Wellington, down from 72.61 cents yesterday.

The trade-weighted index was at 74.40 at 5pm, from 74.97 yesterday. The kiwi traded at 92.68 Australian cents from 93.04 cents, 76.06 yen from 76.66 yen, 59.67 euro cents from 59.78 cents, 51.87 British pence from 52.05 pence, and 4.6340 Chinese yuan from 4.6864 yuan.

Tags: Market Close

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Lender Flt 1yr 2yr 3yr
AIA 4.55 2.55 2.95 3.29
ANZ 4.44 3.10 3.50 3.84
ANZ Blueprint to Build 1.68 - - -
ANZ Special - 2.50 2.90 3.24
ASB Back My Build 1.79 - - -
ASB Bank 4.45 2.55 2.95 3.29
Basecorp Finance 5.49 - - -
Bluestone 3.49 3.34 2.99 3.34
BNZ - Classic - 2.55 2.95 3.25
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 4.55 3.15 3.22 3.85
BNZ - TotalMoney 4.55 - - -
CFML Loans 4.95 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland Bank - Online 1.95 1.85 2.35 2.45
Heretaunga Building Society 4.99 3.80 3.90 -
Lender Flt 1yr 2yr 3yr
HSBC Premier 4.49 2.19 2.45 2.69
HSBC Premier LVR > 80% - - - -
HSBC Special - 2.25 - -
ICBC 3.69 ▲2.29 ▲2.69 ▲2.99
Kainga Ora 4.43 2.67 2.97 3.13
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 3.75 3.34 3.34 4.14
Kiwibank - Offset 3.75 - - -
Kiwibank Special 3.75 2.49 2.49 3.29
Liberty 5.69 - - -
Nelson Building Society 4.95 2.99 3.24 -
Lender Flt 1yr 2yr 3yr
Pepper Essential 4.79 - - -
Resimac 3.39 2.98 2.79 3.29
SBS Bank 4.54 ▲2.89 ▲3.29 ▲3.49
SBS Bank Special - ▲2.39 ▲2.79 ▲2.99
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - 2.29 - -
The Co-operative Bank - Owner Occ 4.40 2.49 2.89 3.19
The Co-operative Bank - Standard 4.40 2.99 3.39 3.69
TSB Bank 5.34 3.30 3.69 4.04
TSB Special 4.54 2.50 2.89 3.24
Wairarapa Building Society 4.99 3.55 3.49 -
Lender Flt 1yr 2yr 3yr
Westpac 4.59 3.15 3.49 3.89
Westpac - Offset 4.59 - - -
Westpac Special - 2.55 2.89 3.29
Median 4.54 2.78 2.99 3.29

Last updated: 2 August 2021 9:09am

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