Hoegh LNG Partners (HMLP) reduces quarterly cash distribution to $0.01/unit

• Cut its quarterly cash distribution to $0.01/unit from $0.44/unit, citing a need to conserve internally generated cash flows to resolve issues related to the ongoing refinancing of the PGN FSRU Lampung credit facility, which is not yet completed due to "failure by the charterer [...] to consent to and countersign certain customary documents related to the new credit facility." Downgraded at Barclays and B. Riley Securities. Drops to 52-week lows.
  

 

 

 

Hoegh LNG Partners reduces quarterly cash distribution to $0.01/unit from $0.44/unit 

• "The Partnership needs to conserve its internally generated cash flows to resolve issues related to the ongoing refinancing of the PGN FSRU Lampung credit facility as described below. The Partnership thereafter expects to use its internally generated cash flow to reduce debt levels and strengthen its balance sheet."
• "The ongoing refinancing of the PGN FSRU Lampung credit facility, which had been scheduled to close by the end of the second quarter of 2021, is not yet completed due to the failure by the charterer of the PGN FSRU Lampung to consent to and countersign certain customary documents related to the new credit facility."

-=Royal Dutch Shell (RDS.A) reported earnings on Thur 30 Apr 20 (b/o)

• Royal Dutch Shell (RDS.A) cutting its dividend for the first time since World War II

Royal Dutch Shell cuts dividend following Q1 release

The Board of Royal Dutch Shell plc announced an interim dividend in respect of the first quarter of 2020 of $0.16 per A ordinary share and B ordinary share, reduced from the $0.47 dividend for the same quarter last year.

The pace and scale of the societal impact of COVID19 and the resulting deterioration in the macroeconomic and commodity price outlook is unprecedented. The duration of these impacts remains unclear with the expectation that the weaker conditions will likely extend beyond 2020. In response, Shell has taken decisive actions to reduce our spending and position our businesses to compete in the current lower commodity price environment and uncertain demand outlook. The Board of Royal Dutch Shell has taken the decision to reset its dividend to provide financial resilience and further flexibility to manage the uncertainty. Shell is taking the steps necessary to ensure that we are well-positioned for the eventual economic recovery.

Royal Dutch Shell beats by $0.09, misses on revs; provides outlook 

Reports Q1 (Mar) earnings of $0.37 per share, $0.09 better than the S&P Capital IQ Consensus of $0.28; revenues fell 28.3% year/year to $60.03 bln vs the $69.88 bln single analyst estimate.

OUTLOOK FOR THE SECOND QUARTER 2020

• As a result of COVID-19, there is significant uncertainty in the expected macroeconomic conditions with an expected negative impact on demand for oil, gas and related products. Furthermore, recent global developments and uncertainty in oil supply have caused further volatility in commodity markets. The second quarter 2020 outlook provides ranges for operational and financial metrics based on current expectations, but these are subject to change in the light of current evolving market conditions. Due to demand or regulatory requirements and/or constraints in infrastructure, Shell may need to take measures to curtail or reduce oil and/or gas production, LNG liquefaction as well as utilisation of refining and chemicals plants and similarly sales volumes could be impacted. These measures would likely have negative impacts on Shell's operational and financial metrics.
• Integrated Gas production is expected to be approximately 840 - 890 thousand boe/d. LNG liquefaction volumes are expected to be approximately 7.4 - 8.2 million tonnes. More than 90% of the term contracts for LNG sales are oil price linked with a price lag of typically 3 - 6 months.
• Upstream production is expected to be approximately 1,750 - 2,250 thousand boe/d.
• Refinery utilisation is expected to be approximately 60% - 70%.
• Oil Products sales volumes are expected to be approximately 3,000 - 4,000 thousand b/d.
• Chemicals manufacturing plant utilisation is expected to be approximately 70% - 80%.
• Chemicals sales volumes are expected to be approximately 3,500 - 4,100 thousand tonnes. 

-=Nielsen (NLSN) reported earnings on Thur 7 Nov 19 (b/o)

Nielsen beats by $0.09, reports revs in-line; raises FY19 EPS guidance in-line, reaffirms FY19 revs guidance

Reports Q3 (Sep) earnings of $0.51 per share, $0.09 better than the S&P Capital IQ Consensus of $0.42; revenues rose 1.0% year/year to $1.62 bln vs the $1.61 bln S&P Capital IQ Consensus.

Co issues guidance for FY19, raises EPS guidance to $1.77 to $1.83 from $1.70 to $1.80 vs. $1.77 S&P Capital IQ Consensus; sees FY19 revs of +0.0% yr/yr to +1.5% yr/yr vs. $6.48 bln S&P Capital IQ Consensus.

Nielsen completes strategic review -- confirms plans to split, will reduce quarterly cash dividend payment to $0.06 from $0.35

The co announced the completion of its strategic review and its plan to spin-off the company's Global Connect business, creating two independent, publicly traded companies-the Global Media business and the Global Connect business-each of which will have sharper strategic focus and greater opportunity to leverage its unique competitive advantages. The strategic review was led by James Attwood, Chairman of Nielsen's Board of Directors.

• As Nielsen prepares for the separation, it has been developing fit-for-purpose capital structure targets for both businesses. As part of the separation, the Board of Directors approved a reduction of the dividend, with the goal of strengthening the two prospective balance sheets ahead of the separation and providing added flexibility to invest for growth. Beginning with Nielsen's next dividend payment in December 2019, Nielsen will reduce its quarterly cash dividend payment to $0.06, from $0.35, per ordinary share. The dividend is payable on December 5, 2019, to shareholders of record at the close of business on November 21, 2019.
• The transaction will be in the form of a distribution to Nielsen shareholders of 100% of the shares of a new entity holding the Nielsen Global Connect business, which will generally be intended to qualify as tax-free to Nielsen and its shareholders for U.S. federal income tax purposes. Immediately following the transaction, Nielsen shareholders will own shares of both Nielsen and the new entity holding the Nielsen Global Connect business. In conjunction with the spin, Nielsen Global Connect is expected to raise new debt. It is currently anticipated that substantially all of the proceeds of the new debt will be used for debt reduction at Nielsen.
• Nielsen currently expects the spin-off transaction to be completed in nine to twelve months, subject to certain conditions, including, among others, the receipt of final Board approval, receipt of an opinion from counsel and/or ruling regarding the U.S. federal income tax treatment of the distribution, the effectiveness of a Form 10 registration statement to be filed with the Securities and Exchange Commission (SEC), the approval of Nielsen shareholders and works council consultations.

Briggs & Stratton (BGG) reported earnings on Thur 15 Aug 2019 (b/o)

• Briggs & Stratton said Thursday its board has cut its quarterly dividend to 5 cents a share from 14 cents. The new dividend is payable Oct. 2 to shareholders of record as of Sept. 18. "This action will help us to direct more funds to debt reduction and investments in attractive commercial products and enabling technologies," Chief Executive Todd Teske said in a statement. 
• The company, which makes gasoline engines for outdoor power equipment, said earlier Thursday it is closing a Kentucky small engine facility by fall of 2020.

** charts after earnings **

 

Briggs & Stratton misses by $0.81, misses on revs; slashes FY20 guidance, reduces dividend

Reports Q4 (Jun) loss of $0.36 per share, excluding non-recurring items, $0.81 worse than the S&P Capital IQ Consensus of $0.45; revenues fell 5.9% year/year to $471.95 mln vs the $519.87 mln S&P Capital IQ Consensus.

"We are clearly disappointed with the fiscal 2019 results. The fourth quarter capped a difficult year of unprecedented market challenges and higher than expected operational inefficiencies encountered during the ramp-up of our business optimization initiatives," stated Todd J. Teske, Chairman, President and Chief Executive Officer. "The North America lawn and garden market slowed considerably as the quarter progressed from unusually wet, cool spring weather compounded by near-term market disruptions with channel partners. Europe set record high temperatures in June and July to impede channel inventory reductions. While we achieved operational improvements on many of the business optimization program start-up issues, continued inefficiencies offset the benefit of those improvements, including near-term labor availability challenges."

In connection with its regular quarterly meeting, the Board of Directors of Briggs & Stratton Corporation declared a quarterly dividend of five cents ($0.05) per share on the common stock of the Corporation. The dividend is payable October 2, 2019, to shareholders of record at the close of business September 18, 2019. This dividend is a reduction from the previous level of $0.14 per share.

• "This action will help us to direct more funds to debt reduction and investments in attractive commercial products and enabling technologies. It sets a payout that we believe is sustainable and can grow over time. Going forward, we will continue to direct funds in those areas that deliver the highest risk-adjusted return on investment"

Co issues downside guidance for FY20, sees EPS of $0.20-0.40, excluding non-recurring items, vs. $1.22 S&P Capital IQ Consensus; sees FY20 revs of $1.91-1.97 bln vs. $1.99 bln S&P Capital IQ Consensus.

• This sales outlook compares with the Company's previous preliminary expectation of approximately $2.01 billion in sales for fiscal 2020. The revision to the outlook principally relates to the lower base sales for fiscal 2019, a reduction in the Company's estimate of the North American market due to near-term disruption caused by channel partner transitions and the prolonged impact of weather on Europe, which has experienced hot and dry conditions in the early months of summer.
• The EPS revision from the prior, preliminary estimate of approximately $1.30 per share, relates to the lower sales outlook, in addition to the impact on margin from expected lower production to reduce inventories and expected continuation of some operational inefficiencies into the first half of the fiscal year.

=Kraft Heinz (KHC) reported earnings on Thur 21 Feb 2019 (a/h)

Kraft Heinz misses by $0.10, reports revs in-line; discloses receipt of SEC subpoena 

• Reports Q4 (Dec) earnings of $0.84 per share, excluding non-recurring items, $0.10 worse than the S&P Capital IQ Consensus of $0.94; revenues rose 0.7% year/year to $6.89 bln vs the $6.93 bln S&P Capital IQ Consensus.
  • Organic Net Sales increased 2.4 percent versus the year-ago period. Pricing was down 1.6 percentage points, as increased promotional activity and pricing to reflect lower key commodity(2) costs in North America, particularly the United States, more than offset higher pricing in EMEA and Rest of World markets. Volume/mix increased 4.0 percentage points, driven by a combination of strong consumption gains in North America and condiments and sauces growth across Latin America, North America, and EMEA.
• Adjusted EBITDA decreased 13.9 percent versus the year-ago period to $1.7 billion (vs. $1.91 bln analyst estimate), including a negative 2.4 percentage point impact from currency.
• The Company received a subpoena in October 2018 from the U.S. Securities and Exchange Commission associated with an investigation into the Company's procurement area, more specifically the Company's accounting policies, procedures, and internal controls related to its procurement function, including, but not limited to, agreements, side agreements, and changes or modifications to its agreements with its vendors.
  • Following this initial SEC document request, the Company together with external counsel launched an investigation into the procurement area. In the fourth quarter of 2018, as a result of findings from the investigation, the Company recorded a $25 million increase to costs of products sold as an out of period correction as the Company determined the amounts were immaterial to the fourth quarter of 2018 and its previously reported 2018 and 2017 interim and year to date periods. Additionally, the Company is in the process of implementing certain improvements to its internal controls to mitigate the likelihood of this occurring in the future and has taken other remedial measures. The Company continues to cooperate fully with the U.S. Securities and Exchange Commission.
  • At this time, the Company does not expect the matters subject to the investigation to be material to its current period or any prior period financial statements.

Kraft Heinz will also cut its quarterly dividend to $0.40/share from $0.625/share
The reduction was announced in the company's Q4 and Full Year 2018 Update slide presentation.

Kraft Heinz to report Q4 results after the close

• Kraft Heinz is slated to report its Q4 results after the close, with a conference call scheduled for 5 PM ET.
• Current analyst estimates call for EPS of $0.94 on revenues of $6.93 bln (+0.8% y/y).
• While Kraft does not traditionally provide specific forward-looking guidance, its worth noting that analysts expect the company to deliver EPS of $3.67 on revenues of $26.42 bln (+0.5% y/y) in 2019.
• When reporting Q3 results in early November, Kraft provided some broader outlook comments, including:
  • Expect both EBITDA growth and absolute level of EBITDA margin to improve beginning in Q4
  • Expect to sustain organic top line momentum -- one-off factors that dragged Q3 EBITDA down should fall away
  • Expect to see a better y/y balance between cost inflation and savings
  • Expects heavy year of investments to drive sustainable profitable growth into 2019 and beyond
• Kraft currently has a market cap of $59 bln and trades at a P/E of 13.3 & P/S of 2.2. Shares are up 12% YTD, but down nearly 51% from all-time highs set in early 2017.
• Based on the Mar 47.5 straddle, the options market is pricing in a move of approximately 6% in either direction by March expiration (March 15).

=General Electric (GE) : dividend cut

• General Electric: widely anticipated dividend cut -- 50% to $0.12/share per quarter; annual yield now 2.3%
• GE slashed its 2018 profit forecast and said it was cutting its dividend by half, as the 125-year-old industrial conglomerate seeks to preserve cash for a restructuring under new CEO John Flannery.
• GE is a Dow component

=Teva Pharma (TEVA) reported earnings on Thur 3 Aug 2017 (b/o)

• Teva Pharmaceutical  has been without a permanent CEO for six months
• revealed the full extent of the challenges facing its next leader by announcing more job cuts, a retreat from 45 markets and a steep cut to its dividend 

JERUSALEM, Aug 3 (Reuters) - Israeli drugs group Teva Pharmaceutical Industrial Industries reported a steeper than expected 18.4 percent drop in second-quarter earnings on Thursday, due to weaker prices in the United States, and cut its interim dividend by 75 percent.

Teva, the world's largest generics drugmaker, said it earned $1.02 per share excluding one-off items in the second quarter, down from $1.25 a share in the same period last year. Revenue rose 13 percent to $5.7 billion.

It cut the quarterly dividend payout to $0.085 per ordinary share from $0.34.

Teva, which bought Allergan's generics business for $40.5 billion in August, was expected by analysts to have earned $1.06 per share on revenue of $5.72 billion, according to Thomson Reuters I/B/E/S Estimates.

Teva was left without a permanent chief executive in February after Erez Vigodman stepped down, leaving new management to restore confidence in the world's biggest generic drugmaker after a series of missteps. Its chief financial officer has also said he will step down in the next few months.

Global sales of Teva's best-selling multiple sclerosis drug Copaxone fell 10 percent in the quarter to $1.02 billion.

As a result the company has cut its full-year earnings forecast to $4.30-$4.50 a share from $4.90-$5.30 previously on revenues now expected to total $22.8-$23.2 billion, down from its previous forecast of $23.8 billion-$24.5 billion.

"This adjusted outlook takes into consideration the impact of increased price erosion in our U.S. generics business, which is expected to be in a high single-digits rate through the remainder of the year, and delays in generic launches in the U.S.," Teva said.

It added that the outlook for the business also reflected the continued deterioration in political and economic conditions in Venezuela, but it assumed no generic competition to its Copaxone 40mg version in the United States in 2017.

Earlier Teva said it would continue to pursue a breach of contract suit against the former owners of its Rimsa plant in Mexico after a New York judge rejected Teva's claim of fraud.