Stocks of the Hour: Gold Road Resources, Oil Search & Omni Bridgeway

Company News

by Melissa Darmawan

Gold Road Resources (ASX:GOR) posted a fall in profit in the first half of this year. The update comes after the miner warned investors a month ago that several disruptions at its Gruyere Gold Mine was set to weigh on their headline production numbers. And it did. They generated $129.6 million in revenue on sales, around a $6 million lower from the same period last year. Net profit after tax fell 18.2 per cent to $19.1 million while EBITDA fell 2.3 per cent. However, their EBITDA margin advanced by one percentage point to 46 per cent. The company is set to pay a fully franked interim dividend of 50 cents in October. Shares in Gold Road Resources (ASX:GOR) are trading 0.2 per cent higher at $1.28.

Oil Search (ASX:OSH) has inked a deal for a credit facility which will help boost their liquidity and capital management for the next five years. The new US$565 million credit facility will replace the US$600 million credit facility that is due to expire in June next year. The news follows the ongoing talks with Santos (ASX:STO) on the proposed merger. Shares in Oil Search (ASX:OSH) are trading 2.3 per cent lower at $3.67.

Shareholders in litigation financier Omni Bridgeway (ASX:OBL) are booking their profits after a judgement was overturned with hopes of potential income, gone. The case related to the operation of the Wivenhoe and Somerset dams in January 2011 and the severe flooding in the Brisbane region. This caused damage and loss to thousands of people and businesses. The claim was brought in 2014 as a class action that was 50 per cent funded by Omni Bridgeway. The trial commenced four years ago in December 2017 and took over a year to complete. On 29 November 2019, the Supreme Court of New South Wales found the State of Queensland, Sunwater and Seqwater, liable in negligence to the group members. Seqwater lodged an appeal against the decision, whilst the State and Sunwater settled the judgment against them through the partial settlement which was approved by the Supreme Court on 3 May 2021. The Seqwater appeal was heard in the Court of Appeal in May this year. After four months, they celebrated on the outcome yesterday. They were not found liable. Shares in Omni Bridgeway (ASX:OBL) are trading 6.6 per cent lower at $3.94. 

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