On 11 August 2020, Sydney Airport (SYD) reported its first half results for the period ended 30 June 2020. As expected, SYD’s results were materially impacted by COVID-19 related travel restrictions which were implemented progressively from February 2020

On 7 August 2020, Summit Midstream Partners (SMLP, Company) announced its second quarter (2Q20) results for the period ended 30 June 2020. The Company posted revenues and adjusted EBITDA of USD92m and USD65m, respectively. As a result of depressed oil prices, production shut-ins, deferred drilling activities and impacts from the COVID-19 pandemic, SMLP experienced quarter-on-quarter declines in volumes in all segments excluding Utica Shale which was up ~87% on 1Q20 mainly due to the outperformance of new wells connected in March. SMLP maintains ample liquidity, as at 30 June 2020, the Company reported USD36.6m of cash on balance sheet and USD191m available under its USD1.25bn revolving credit facility.

After somewhat of a slow start to the year, bond issuance has gathered momentum. While this has been mainly led by governments and financial institutions issuance, good quality corporate issuers are also taking advantage of the market conditions to lock in funding and shore up capital.

In early August, Ansett Aviation Training (AAT, Company) provided a trading and financial update. Encouragingly, AAT reported higher revenue, EBITDA and cash balances than forecasts for FY20.

On 7 August 2020, Insurance Australia Group reported a net profit after tax of AUD435m in FY20, down ~60% on the prior corresponding period. Underlying results were sound but headline numbers reflected the impacts of natural peril events during the year (including the bush fires) and lower investment returns.

On 5 August 2020, natural gas pipeline owner & operator, Equitrans Midstream Corporation (parent of EQM Midstream Partners; ETRN, Company) announced its second quarter results for the period ended 30 June 2020. The Company posted revenues and adjusted EBITDA of USD341m and USD263m, respectively. Operating revenue for the second quarter was USD66m lower than the prior corresponding period, primarily due to the impact of deferred revenue in 2Q20 and partially offset by increased revenue from higher minimum volume commitments (MVCs) on gathering and water contracts.

On 5 August 2020, Oasis Petroleum Inc. (OAS, Company) reported its second quarter (2Q20) results for the period ended 30 June 2020. Overall, the results reflect the extremely challenging operating environment OAS has experienced since the oil price crashed in mid-March. Total revenues and adjusted EBITDA for 2Q20 were USD166m and USD174m, respectively. Adjusted EBITDA was higher than reported revenues due to a large positive contribution from derivative settlements.

On 5 August 2020, Peabody Energy Company (Peabody, Company) announced its second quarter results for the period ended 30 June 2020. Overall, the results were weak (although not unexpected), 2Q20 revenues were USD627m down 45% on the prior corresponding period (pcp), reflecting the impact of a decrease in volumes in the Powder River Basin compounded by challenging U.S. industry conditions and weak commodity prices, in conjunction with lower gas prices which drives higher electricity generation from gas rather than coal.

The current environment has seen some large, stable corporates issue long dated bonds at low interest rates compared to recent history.

On 3 August 2020, the government of Victoria announced a range of new restrictions to combat the spread of COVID-19 in the state. In this report, we undertake an initial preliminary assessment of what these mean for a number of companies.

On 30 July 2020, General Motors Financial Company (GMF, Company) announced 1H20 results for the six month period ended 30 June 2020. GMF recorded softer revenues, earnings before tax (EBT) and net profit after tax (NPAT).

On 30 July 2020, Genworth Mortgage Insurance Australia Limited, the non-operating holding company for Genworth Financial Mortgage Insurance Pty Ltd, reported a statutory net loss after tax of AUD90.0m for the six months ended 30 June 2020. Much of the headline result was impacted by provisions for expected future claims in response to COVID-19 that were announced in the first quarter, with the company reporting a net profit after tax of AUD35.6m in the second quarter.

On 27 July 2020, Emeco Holdings Limited (Emeco) released its full year results for the period ended 30 June 2020 (FY20). Overall, the results were solid, owing in part to the contribution of recent acquisitions. Emeco reported revenue and EBITDA of AUD540m and AUD246m, respectively, both were up about 15% on the prior year.

On 20 July 2020, Privium Group (Privium, Company) provided a trading update for the 11 months ended 31 May 2020 and an update on progress of the refinancing of its notes. While full year results are still to be finalised, the Company reported a 5% increase in sales to 1,215 (FY19 1,154), with revenue to May of AUD235.3m and EBITDA of AUD12.0m.

In our latest Credit Outlook looking at what's in store for the next six months, we consider the various dynamics at stake that will influence the financial markets and the economy for the rest of 2020. Notwithstanding better than feared data more recently, significant uncertainty around the recovery in employment and demand is likely to weigh on the private sector (businesses and households) for some time.