Origin Energy Ltd (ASX:ORG) and Strike Energy Ltd (ASX:STX) shares are two of four ASX shares sinking lower on Friday…..
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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a subdued note. At the time of writing, the benchmark index is down 0.1% to 7,053.2 points.
Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:
Mineral Resources Limited (ASX: MIN)
The Mineral Resources share price is down 5% to $42.92. This follows the release of a disappointing quarterly update this morning. According to the release, during the March quarter the company shipped just 4.1 million wet metric tonnes of iron ore. This compares to the average of approximately 4.8 million to 5.1 million wet metric tonnes per quarter required to achieve its guidance. Management blamed the weak shipments on a shortage of truck drivers caused by border closures.
Origin Energy Ltd (ASX: ORG)
The Origin share price has sunk 8% to $4.31. Investors have been heading to the exits in their droves after the energy company downgraded its earnings guidance for FY 2021. Origin was forced to make the downgrade due to an adverse and unexpected outcome on a domestic gas contract price review and continued headwinds in energy markets’ operating conditions. Origin is now expecting its energy markets division to post a 30% to 35% decline in operating earnings in FY 2021.
Strike Energy Ltd (ASX: STX)
The Strike Energy share price is down 9% to 34 cents. This morning the energy producer announced the completion of a $75 million placement. According to the release, the placement attracted strong demand from local and international institutions, as well as other professional and sophisticated investors. These funds were raised at a 20% discount of 30 cents and will be used to deliver a suite of potentially transformational Perth Basin outcomes.
Whitehaven Coal Ltd (ASX: WHC)
The Whitehaven share price has continued its slide and is down a further 5% to $1.48. Investors have been selling the coal miner’s shares since the release of a production and guidance update this week. That update reveals that the coal miner’s production has been impacted by poor weather conditions and geological challenges. As a result, Whitehaven has downgraded its FY 2021 managed ROM production at the Narrabri mine.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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