Australia's Adbri gains most in 6-1/2 months on 2023 EBITDA forecast upgrade

Adbri

15/12/2023 03:30

(Updates with Jefferies' comments)
    ** Shares of Adbri  ABC.AX  rise as much as 11% to A$2.320,
their biggest intraday pct gain since May 25 
    ** The construction material firm says Kwinana Upgrade
Project cost and timing remains on track
    ** Project consolidates co's two existing cement production
sites
    ** Co hikes 2023 EBITDA forecast to A$310 mln-A$315 mln 
($207.76 mln-$211.11 mln) from ~A$306 mln
    ** Co cuts capital expenditure forecast to A$310 mln-A$320
mln range from A$330 mln-A$350 mln estimate provided in August
    ** Jefferies says capex expectations positive for ABC after
a series of capex blowouts at Kwinana upgrade project in Western
Australia
        ** Brokerage adds that strong demand in H2 FY23
shouldn't be a surprise on observations of building pipeline and
inflationary background for construction
        ** Says since COVID-19, homebuilding costs were up 37%,
engineering costs up 19% 
    ** Adds backlog environment supportive for materials pricing
and construction inflation
    ** Stock hits its highest level since Aug 30
    ** About ~1.8 mln shares change hands, vs 30-day average
volume of 383,834 shares
    ** Stock up 26.3% YTD, as of last close   

    ($1 = 1.4921 Australian dollars)

 (Reporting by Rajasik Mukherjee in Bengaluru)
 ((Rajasik.Mukherjee@thomsonreuters.com))