ASX 200 flat, Flight Centre drops, Air New Zealand rises

The S&P/ASX 200 Index (ASX:XJO) was flat today, Flight Centre Travel Group Ltd (ASX:FLT) shares drop in reaction to vaccination delays.
The post ASX 200 flat, Flight Centre drops, Air New Zealand rises appeared first on The Motley Fool Australia. –

ASX shares represented by gold letters spelling ASX sitting atop a line graph

The S&P/ASX 200 Index (ASX: XJO) was essentially flat, falling 0.05% to 6,995 points.

One of the declines on the ASX was the Flight Centre Travel Group Ltd (ASX: FLT) share price which fell 2.6% in reaction to the news that the Australian vaccination rollout was going to be delayed.

Here are some of the other highlights from the ASX today:

Air New Zealand Limited (ASX: AIZ)

The Air New Zealand share price went up 1.5% in reaction to the airline’s update.

Air New Zealand is still looking to complete a capital raising.

The work continues to be informed by the evolving circumstances related to the global impact of the COVID-19 pandemic, including the government’s announcement of the maintaining international air connectivity scheme, the March 2021 public announcements on vaccination programme timing, the potential implications for broader border re-openings, and the announcement of the quarantine-free travel bubble to commence on 19 April. All of these are fundamental to Air New Zealand’s financial performance.

The company has changed its proposed capital raising target to be before 30 September 2021, not before 30 June 2021.

Air New Zealand has also renegotiated its existing lending facility with the government to ensure it has sufficient liquidity. It will increase the facility by up to $600 million in additional liquidity. This brings the total facility to $1.5 billion. The facility has been extended by another 16 months.

The company wasn’t able to provide an updated cash burn update.

Perenti Global Ltd (ASX: PRN)

The Perenti Global share price went up today after confirming it received $80 million to date from the sale associated with the early exit of the Yanfolila Mine in Mali and Boungou contract in Burkina Faso.

From an operational perspective, the completion of the asset sale represents the successful exit from both projects.

As previously reported, the company expects to “liberate” $80 million to $90 million in cash from the sale of the mines, plus the remaining in-country plant, property and equipment and the settlement of outstanding working capital balances associated with the final close out of these two contracts.

Perenti managing director and CEO Mark Norwell said:

With the receipt of these funds, as outlined when we presented our 2021 half year results we will redeploy this capital across our business into our most value accretive opportunities as we seek to generate and maximise value for our shareholders.

Eroad Ltd (ASX: ERD)

The Eroad share price rose over 7% after announcing that it had signed its largest Australian customer, Ventia.

Ventia has entered into a five-year agreement for a monthly subscription of Eroad’s software as a service (SaaS) products and intends to install approximately 2,500 Ehubo 2 devices in their Australian fleet with a further 1,500 in their New Zealand fleet. The agreement does not specify any minimum unit commitment. It is anticipated that these Ehubo units will be installed throughout the 2021 calendar year.

Eroad CEO Steven Newman said:

EROAD is pleased to announce that Ventia, an existing New Zealand customer for a number of years, has chosen to come on board as an Australian enterprise customer as well as significantly increasing the size of its New Zealand fleet utilising EROAD services. EROAD is looking forward to working in partnership with Ventia to deliver best safety outcomes.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post ASX 200 flat, Flight Centre drops, Air New Zealand rises appeared first on The Motley Fool Australia.

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