Market commentary

WELLINGTON: Company results poured through the New Zealand market yesterday, telco Spark helping to lift the index on the news of its strong annual result.

The S&P/NZX 50 index rose 12.1 points to 11,655.33. Turnover was $113.1 million.

Spark’s board declared a final dividend of 12.5c per share, taking the annual return to 25cps and signalling plans to lift that to 27cps in the 2023 June year. The company reported a net profit of $410 million, up 7.6% over the previous period’s $381 million.

Following the $900 million capital injection from the sale of its passive tower assets, Spark also promised a $350 million onmarket share buyback once the deal is completed. The company’s shares were up 1.5% to $5.35 with more than $10.4 million traded over the course of the day.

Devon Funds head of retail Greg Smith said Spark had ‘‘outperformed’’ with its result and had particularly impressed the market, the dividend improvement standing out.

Healthcare products wholesaler and distributor Ebos Group shares rose 1.3% to $38.50 after its annual profit rose by 9.3%.

Energy company Meridian Energy was down 2.9% to $5.10 after it reported operating earnings of $709 million and increased profits for the June year.

Mr Smith said energy stocks had had a positive earnings season and Meridian’s results were ‘‘solid’’. The company’s net profit was $664 million in the 12 months ended June 30, up 55% from last year’s $428 million.

Australasian steel and metal distributor Vulcan Steel was up 0.9% to $9.17 after it revealed its fullyear profit had risen 91% while its revenue rose 33% to $972.7 million, up from $731.5 million a year earlier.

Residential property developer Winton reported its net profit was $31.7 million in the 12 months ended June 30, down from $46.1 million a year earlier. The company still managed to beat its annual forecasts and the shares closed flat at $2.50.

Logistics business Move Logistics rose 0.8% to $1.34 after it reported a loss of $3.1 million for the year to June 2022, despite a 5% increase in revenue to $349.1 million. Move Logistics also told shareholders it would pay about $15.2 million for bulk liquid transporter Fluidex Transport, as a ‘‘bolton’’ to the firm’s contract logistics business.

Air NZ reports its fullyear earnings today and Mr Smith said it would be interesting to see what the company revealed considering its financial year had covered such a tumultuous period for the aviation industry. Air NZ closed up 1.6% to 67.5c.

Auckland International Airport, which reported its earnings earlier in the week, rose 0.4% to $7.52. Sky City Entertainment, whose result is out today, was up 2.1% to $2.96.

Heartland announced its $130 million placement was fully subscribed yesterday afternoon, after putting its shares in a trading halt on Tuesday when it also released its fullyear results. Heartland shares closed down 10.9% to $1.89. —