1 October we become SureStone CapitalSame team, same ABN. Our website and email addresses move to surestone.com.au.
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Oil prices have surged by more than one quarter in just one day as the war in the Middle East escalates. Brent crude surged by 25% to above $116 us dollars a barrel, the highest price since 2022 when Russia invaded Ukraine. It rose by nearly one third last week. Investors are bracing for higher energy costs with the Strait of Hormuz effectively closed. Around one fifth of the world's oil and gas supply goes through the Strait. Qatar's oil minister says he expects all Gulf energy producers to shut down exports within weeks which could drive oil above $150 us dollars a barrel.
Santos (ASX:STO) and joint venture partner, Beach Energy, have decided to proceed with the Moomba Central Optimisation project in the Cooper Basin. Santos will invest $357-million dollars in the project. The oil and gas producer expects capex and opex savings of more than $600-million dollars, a reduction in unit production costs, and a higher internal rate of return.
Pro Medicus (ASX:PME) has signed two five year contract renewals in the U-S worth $40-million dollars. The deals are through its subsidiary Visage Imaging. The company says both agreements are transaction based and were negotiated with higher transaction fees, which offer potential upside above the minimum contract value.
Dyno Nobel (ASX:DNL) will sell its Phosphate Hill fertiliser business to Mayfair Australia for $1 to exit the fertiliser business. The deal could deliver up to $100-million in deferred payments tied to performance hurdles and Dyno Nobel will provide $126-million dollars to fund future clean-up costs. Dyno Nobel says its explosives business remains on track to meet fiscal 2026 EBIT guidance of $460 to $500-million dollars.
And Nanosonics (ASX:NAN) says the US Food and Drug Administration has given it clearance for expanded endoscope processing. The FDA is for its Coris system which marks the first step in broadening its US market coverage. Controlled market release has begun in the UK, with Australia set to follow. The phase rollout will lead to a full commercial launch next year.
S&P Dow Jones Indices has announced the March quarterly rebalance of the S&P/ASX Indices. Gold miner Northern Star is set to replace Santos in the S&P/ASX 50. Meanwhile Light & Wonder and PLS will join the S&P/ASX 50, with Seek and TechnologyOne falling off the list. A couple gold miners of are also set to join the top 100, while Lendlease, Netwealth Group and Pinnacle Investment Management are downgraded.
