On 12 November 2020, Ovato released an update on the ASX in relation to the initiatives the Company has been pursuing to reset its capital structure to a more sustainable level.

The ASX listed Downer’s longer dated fixed coupon bond is the newest addition to the retail product offering.

On 30 September 2020, Oasis Petroleum Inc. (OAS, Company) along with certain subsidiaries, announced it had sought Chapter 11 protection under the relevant provisions of the US Bankruptcy Code. In our view, this is not surprising given the extremely challenging operating environment the Company has experienced since the oil price crashed in mid-March that resulted in uncertainty about covenant compliance on its revolving credit facility (which we flagged in our April and August reports).

On 23 September 2020, Nufarm reported its FY20 results for the period ending 31 July 2020. The company reported revenues and EBITDA from continuing operations of AUD2.85bn and AUD236m, respectively. While revenues were up 6.5% on the prior year due, EBITDA fell 21% year-on-year in large due to a decline in European earnings and a weak first half in North America which offset earnings growth in Australia and New Zealand and Asia.

Eric Insurance (Eric, Company) reported a statutory net loss after tax of AUD(7.7m) for the year ended 30 June 2020 (FY20). This compares with a statutory net loss after tax of AUD(0.39m) in the prior year. Results were unfavourably impacted by lower gross written premiums through the continued decline in new car registrations and the significant impact of COVID-19 in the last quarter of FY20, as well as a number of material non-cash items. The underlying insurance trading result--a measure of underwriting profitability excluding nonrecurring items, as produced by the Company--was 21% lower in FY20 at AUD10.9m. Importantly for noteholders, and despite market turbulence in March 2020, Eric’s Tier 1 regulatory ratio managed to remain broadly unchanged at 123.2%, above a required level of 80%.

Lucas Total Contract Solutions (Lucas, Company) recently provided its quarterly investor update for the period ended 30 June 2020 (4Q20). In addition, the Company provided its monthly operational update for July and August.

Omni Bridgeway Limited (OBL) reported a net profit after tax of AUD17.6m for the year ended June 30, 2020. This compares with a net loss after tax of AUD(36.1m) in the prior corresponding period. The turnaround in profit was underpinned by the successful resolution of a number of cases in favour of OBL, generating revenue of AUD275.5m (compared with AUD35.0m in the prior corresponding period). This is OBL’s highest reported level of earnings from litigation cases in its history. Cash and net receivables increased by 44% to AUD325m.

Zip Co Limited, the listed parent entity of zipMoney Payments Pty Limited, the originator, servicer and trust manager of the zipMoney Trust 2017-1 (Warehouse) reported a loss of AUD(20.0)m for the 12 months ended 30 June 2020, although this should come as little surprise. Despite the headline loss, underlying momentum remains unwavering. Portfolio income was 92% stronger to AUD159.4m, with cash gross profit up 85% to AUD79.4m. Outstanding receivables were 72% higher at AUD1.1bn. The underlying pool of assets supporting the Warehouse continues to perform well and in line with the required parameters. Arrears and bad debts have drifted higher, as expected in the current environment. Despite this, credit enhancement remains considerable.

On 21 August 2020, Armour Energy (AJQ, Company) CEO, Brad Lingo, presented a webinar along with Management members from a number of other small cap ASX listed businesses.

On 24 August 2020, diversified mining services company Perenti Global Limited (PRN, parent of Barminco Finance Pty Ltd (Barminco)) reported strong operating and financial results for the full year ended 30 June 2020. During the period, PRN reported record revenues and underlying EBITDA at AUD2.04bn and AUD444m, respectively, up a respective 3.8% and 6.8% on FY19 results. PRN’s underlying EBITDA figure reflects strong operating performance despite challenging conditions.

On 21 August 2020, MyState Limited announced its results for the year-ended 30 June 2020 (FY20), reporting a statutory net profit after tax of AUD30.1m, down 3.0% on the prior corresponding period. MyState’s capitalisation remains sound and unchanged, with the company reporting a Common Equity Tier 1 (CET1) ratio of 11.07% (albeit, toward the lower-end of peers).

On 19 August 2020, Mineral Resources Limited (MRL) reported its full year results for the period ended 30 June 2020 . MRL reported revenues of AUD2.13bn and underlying EBITDA of AUD765m, up 41% and 77% on FY19, respectively. Increases in revenues and underlying EBITDA figures when compared to the prior corresponding period (pcp) resulted from record iron ore sales and a significantly higher realised iron ore price over the period.

On 24 August 2020, Australian iron ore mining company, Fortescue Metals Group Ltd (FMG) released strong full year results. FMG reported record shipments, revenues, earnings and cashflows for FY20, reflecting strong customer demand and a supportive iron ore price environment.

On 17 August 2020, Broad Peak & Tor, two large Asian-based investors fronting an ad-hoc group of bondholders, sought a number of orders from the Federal Court to facilitate the finalisation of their proposal. In this report, we consider the new information that came to light during yesterday's hearings and why the creditors' vote is likely to be about how the Bain agreement is to be implemented rather than a choice between Bain and Broad Peak & Tor.

On 20 August 2020, Qantas Airways Limited (Qantas) reported its full year results for the period ended 30 June 2020. Predictably, despite a very strong first half, the results reflected the very challenging operating environment since the beginning of the COVID-19 pandemic. The Group reported FY20 revenues of AUD14.3bn, down 21% on the prior corresponding period (pcp). Qantas reported underlying EBITDA of AUD2.4bn, reflecting only a ~AUD500m increase on 1H20 results.”

On 12 August 2020, Downer EDI Limited (Downer) announced its full year results for the period ended 30 June 2020. Revenues were largely flat year-on-year (yoy), coming in at AUD12.7bn in FY20. Full year underlying EBITDA was AUD862m, reflecting a AUD176m positive impact from the adoption of new accounting standards. FY20 underlying EBITA was in line with guidance provided in July, down 26% yoy to AUD416m.

On 21 August 2020, Suncorp Group Limited (Suncorp), the non-operating holding company for AAI Limited (the main insurance operating subsidiary for Suncorp’s Australian insurance operations) and Suncorp-Metway Limited (its banking operations), announced its results for the year-ended 30 June 2020 (FY20), reporting a statutory net profit after tax AUD913m.

In mid-August 2020, Next Generation Clubs Australia (Next Gen, Company) provided a trading update. Since July, all clubs have transitioned to an ‘opt-out’ status, with all memberships being reinstated. Membership activation is now at 84% of pre-COVID levels across all its clubs. In addition, operating costs have also increased, correlated with the increase in activity.