Oil Prices Slip On Demand Concerns

Deutsche Wohnen Q1 FFO Falls; Backs FY22 Outlook

Deutsche Wohnen SE (DWHHF.PK), a German property company, on Monday posted a decline in funds from operations or FFO for the first quarter, amidst the lower rent revenues following the portfolio sales. In addition, for the full year, the company has reaffirmed its guidance.

For the first quarter, the Berlin-headquartered firm reported its FFO at 135.6 million euros or 0.34 euro per share, compared with 154.8 million euros or 0.45 euro per share a year ago.

A decline in FFO was mainly due to the lower rent revenues following the portfolio sales and an increase in the number of shares as part of the merger with Vonovia.

The company’s earnings after taxes moved up to 236 million euros as against 199.7 million euros of previous year.

Adjusted EBITDA was 166.1 million euros, versus 208.6 million euros, posted for the first three-month period of 2021.

In the quarter, contracted rental income declined 13 percent from last year to 189.6 million euros.

Moving forward, for the fiscal 2022, Deutsche Wohnen continues to expect its FFO to be at around 490 million euros with an adjusted EBITDA of around 640 million euros.

Olaf Weber, CFO of Deutsche Wohnen, said: “The key business figures have developed positively and in line with our expectations. Moreover, we see the increase in the value of our holdings as proof that our investments in the quality of our portfolio are paying off. Against this background, we anticipate that our business operations will continue to develop positively in 2022.”

Gold Dips As Dollar Rises With Yields

Gold prices slipped on Monday, the dollar scaled a two-decade high and yields on ten-year benchmark debt hit 3.18 percent for the first time since Nov 2018 as investors priced in the prospect of aggressive policy tightening by global central banks.

Spot gold fell 1 percent to $1,864.88 per ounce, while U.S. gold futures were down 1 percent at $1,863.90.

Germany’s 10-year bond yield hit a new highest level since 2014 after hawkish policymaker Robert Holzmann said on Saturday that the ECB should hike interest rates three times this year to combat inflation.

Fed Chair Jerome Powell said last week that a 75-bps rate hike is not under active consideration.

However, market participants seem convinced that the U.S. central bank would need to take a more drastic action to curb soaring inflation, with a further 200 bps of hikes priced in for the rest of 2022.

Hawaiian Electric Industries Q1 Net Income Rises

Hawaiian Electric Industries, Inc. (HE) reported first quarter consolidated net income of $69.2 million or $0.63 per share compared to $64.4 million or $0.59 per share, prior year. Analysts polled by Thomson Reuters expected the company to report profit per share of $0.44, for the quarter. Analysts’ estimates typically exclude special items.

Total revenues increased to $785.07 million from $642.95 million, prior year. Electric utility revenues increased to $708.79 million from $564.86 million.

“Earning asset yields are starting to improve, credit quality remains solid, and the bank is managing expenses well amid its digital transformation. We also had a gain from the sale of an investment in an electric vehicle charging company that Pacific Current has partnered with to expand charging stations in Hawaii,” said Scott Seu, HEI CEO.

Hochtief Q1 Profit, Orders Climb; Confirms FY22 Outlook

German construction major Hochtief AG (HOCFF.PK) reported Monday that its first-quarter nominal net profit climbed 23.4 percent to 106.1 million euros from last year’s 86 million euros.

Nominal earnings per share were 1.56 euros, up 23.8 percent from last year’s 1.26 euros.

Operational net profit was 118.2 million euros, up 19 percent from 99.2 million euros last year. Operational earnings per share were 1.74 euros, compared to 1.45 euros last year.

Operational profit before tax increased 14 percent from last year to over 179 million euros, driven mainly by the Asia Pacific division and Abertis.

Sales went up 8 percent to 5.33 billion euros from last year’s 4.93 billion euros, driven by Americas and Asia Pacific.

New orders were 6.5 billion euros, a 10 percent increase from last year. Order book stands at 50 billion euros, up 6 percent since March 2021.

Looking ahead, the company confirmed fiscal 2022 outlook. HOCHTIEF continues to expect to achieve an operational net profit in the range of 475 million euros to 520 million euros, an increase of between 5 percent and 15 percent year on year, subject to market conditions.

BioNTech Q1 Profit Surges; Backs FY22 COVID-19 Vaccine Revenue View – Quick Facts

BioNTech SE (BNTX), a German bio-tech firm, reported Monday that its first-quarter net profit surged to 3.70 billion euros from last year’s 1.13 billion euros.

Earnings per share were 14.24 euros or $15.972, up from last year’s 4.39 euros.

First -quarter revenues were 6.37 billion euros, up from 2.05 billion euros a year ago.

Looking ahead for fiscal 2022, the company continues to expect COVID-19 vaccine revenue of 13 billion euros to 17 billion euros.

The revenue estimate reflects expected revenues related to BioNTech’s share of gross profit from COVID-19 vaccine sales in the collaboration partners’ territories, from direct COVID-19 vaccine sales to customers in BioNTech’s territory and expected revenues generated from products manufactured by BioNTech and sold to collaboration partners.

Oil Prices Slip On Demand Concerns

Oil prices slipped on Monday amid fears that a global recession against the backdrop of the Ukraine War and China’s economic woes could dampen oil demand.

Benchmark Brent crude futures fell $1.45, or 1.3 percent, to $110.94 a barrel, while West Texas Intermediate Crude oil futures were down $1.69, or 1.5 percent, at $108.06.

China’s export growth slowed to the weakest in almost two years and imports were barely changed in April, adding to concerns over the economic outlook.

Tightening lockdowns in China also added to concerns about a recession later this year.

Shanghai is further tightening its stringent lockdown measures after China’s top leader Xi Jinping pledged to “unswervingly” double down on the country’s controversial zero-Covid policy.

Saudi Arabia has cut prices for buyers in Asia for the first time in four months as China’s disruptive lockdowns weigh on demand.

Geopolitical tensions also remained on investors’ radar, with Russian President Vladimir Putin defending Moscow’s “special military operation” in Ukraine.

In his inaugural speech on the occasion of Victory Day, Putin said it was “necessary” amid war threats from the Western nations.