Anonymous ID: 426bfd Dec. 20, 2019, 9:03 a.m. No.7571613   🗄️.is đź”—kun   >>1701 >>1814 >>1970 >>2109

Shell writes down up to $2.3 billion on weaker economic outlook

 

Royal Dutch Shell said on Friday it expected to write down up to $2.3 billion in the fourth quarter, the latest major energy company forced to shrink estimates for sector values due to a weaker economic outlook.

In a trading update ahead of full year results, Shell also lowered its oil products sales forecast, pointing to the first annual slowdown in sales since at least 2014, while maintaining spending on the lower end of forecasts.

 

The Anglo-Dutch company warned in October that trade tensions between the United States and China, the world’s two largest energy consumers, could hurt demand and take a toll on its performance.

 

Shell said it expected to take post-tax impairment charges in a range between $1.7 billion and $2.3 billion for the quarter “based on the macro outlook”. It did not say which assets the impairments relate to.

 

Since October, rivals Chevron VCX.N, BP (BP.L), Equinor ENQR.OS and Spain’s Repsol (REP.MC) all wrote down a total of around $20 billion, primarily in U.S. shale gas assets due to lower long-term gas prices.

 

The impairment will likely increase Shell’s debt ratio, or gearing, which the company has struggled to reduce in recent years.

https://www.reuters.com/article/us-shell-outlook/shell-writes-down-up-to-2-3-billion-on-weaker-economic-outlook-idUSKBN1YO0PC

Anonymous ID: 426bfd Dec. 20, 2019, 9:14 a.m. No.7571703   🗄️.is đź”—kun   >>1814 >>1970 >>2109

US Steel Shares Plunge, Dividend Slashed, Buybacks Halted, 1,500 Workers Cut Amid Deepening Manufacturing Recession

 

President Trump told a crowd of steelworkers in Illinois in July 2018 that "After years of shutdowns and cutbacks today the blast furnace here in Granite City is blazing bright, workers are back on the job and we are once again pouring new American steel into the spine of our country."

 

While US Steel's Granite City might be operational for the time being, the steel producer has just announced it will shut down a "significant portion" of its Great Lakes Works facility, slash its dividend, terminate 80% of its share buyback program, and layoff 1,500 workers.

 

Great Lakes Works is expected to halt operations by April 2020. The mill rolls slabs into sheets of steel and has been battered by the manufacturing recession and trade war. The facility laid off 200 workers earlier this year, with another 1,500 in the near term, reported 247 Wall Street. The failed turn around of US Steel comes as the manufacturing recession shows limited signs of abating, forced the company to slash its dividends for 2020 from $.05 per share to $.01. At least 80% of its buyback program will be terminated in early 2020 - a measure to help the struggling steel company avoid bankruptcy.

 

The company will refocus its efforts at its Mon Valley Work facility in Pennsylvania, Big River Steel in Arkansas, and another in Gary, Indiana.

 

US Steel CEO David Burritt told investors on a call that "Acquiring the remaining stake in Big River Steel continues to be our top strategic priority."

 

Burritt also commented on the upcoming Great Lakes Works shutdown:

 

"[C]urrent market conditions and the long-term outlook for Great Lakes Works made it imperative that we act now, allowing us to better align our resources to deliver cost or capability differentiation across our footprint. Transitioning production currently at Great Lakes Works to Gary Works will enable increased efficiency in the use of our assets, improve our ability to meet our customers' needs for sustainable steel solutions and will help our company get to our future state faster," he said.

 

** US Steel has revised fiscal 2019 guidance lower, expects a decrease in spending in 2020. Here are the earnings highlights via Reuters

 

** Company sees Q4 adj. loss per share at $1.15 compared with analysts expectations of 60 cents

 

** Cuts its quarterly dividend to $0.01/share from $0.05/share (Full Story)

 

** Expects Q4 adj. EBITDA to be -$25 mln, which excludes about $225 mln of estimated restructuring and other charges, compared with analysts' EBITDA est. of $83.98 - Refinitiv IBES data

 

** Company also lowers its 2020 spending forecast to $875 mln from $950 mln

 

** Says it plans to "indefinitely idle a significant portion" of its operations at its Great Lakes Works facility near Detroit

 

** Company will issue Worker Adjustment and Retraining Notification Act notices to about 1,545 employees at the facility.

 

US steel was supposed to get a boost from President Trump's 25% tariff on steel imports, but that has since backfired as steel prices continue to drop, and a manufacturing recession continues to deepen.

 

So the question remains, with US Steel shares turning lower into 2020 - does that mean S&P500 priced in a monster rebound in growth that may not happen? If so, that could mean the Fed's 'Not QE' has helped fueled a blowoff top in stocks.

 

https://www.zerohedge.com/markets/us-steel-shares-plunge-dividend-slashed-buybacks-halted-1500-workers-cut-amid-deepening

Anonymous ID: 426bfd Dec. 20, 2019, 9:48 a.m. No.7571993   🗄️.is đź”—kun   >>2109

Dish Network Corp Chairman exercised 13,645,693m shares-Dec 13th @ $33.52/sh, market value

 

See Below

 

DISH Network Completes Rights Offering

ENGLEWOOD, Colo., Dec. 13, 2019 /PRNewswire/ – DISH Network Corporation ("DISH") announced today that it has completed its previously announced rights offering to raise approximately $1 billion.

Of the 29,834,992 newly issued shares of DISH's Class A common stock, approximately 81% of the shares were issued through the exercise of the subscription rights (including the exercise in full by DISH's Chairman and largest shareholder Charles W. Ergen) and approximately 19% of the shares were issued through Mr. Ergen's standby purchase commitment.

The rights offering was made pursuant to DISH's effective shelf registration statement on Form S-3 (No. 333-234552), filed with the Securities and Exchange Commission (the "SEC") on November 7, 2019, and the prospectus supplement filed with the SEC on November 22, 2019.

https://www.prnewswire.com/news-releases/dish-network-completes-rights-offering-300974817.html

Dish founder Ergen (chairman) says he asked for senator's help on T-Mobile/Sprint

Dish Network Corp Chairman Charlie Ergen testified on Wednesday that the Justice Department's antitrust chief advised him on June 10 to ask a senator to speak to the Federal Communications Commission about approving a key piece of the merger of wireless carriers T-Mobile and Sprint. The Justice Department approved the merger in July after the carriers agreed to sell some assets to satellite provider Dish. The merger, however, was still subject to approval by the FCC, which came in October. Ergen's testimony on Wednesday came during the trial of a lawsuit filed in June by a group of U.S. states seeking to block the Sprint and T-Mobile merger. The states, led by New York and California, say the merger would lead to higher prices for customers.

 

The purchase by Englewood, Colorado-based Dish of the Sprint assets would allow Dish to build a viable competitor to the combined T-Mobile/Sprint, Verizon and AT&T. It is unusual for a Justice Department official to suggest to a company that it use access to U.S. senators to lobby another federal government agency. Attorneys for the states on Wednesday presented a text message from June 10 in which Makan Delrahim, the Justice Department's antitrust division chief, told Ergen: "Today would be a good day to have your Senator friends contact the chairman," a reference to FCC Chairman Ajit Pai. The states opposing the merger filed their lawsuit the next day. A spokesman for Pai declined to comment on Wednesday. Ergen testified that he asked Senator Cory Gardner of Colorado to speak with Pai and also spoke with Senate majority leader Mitch McConnell, but said he did not recall asking McConnell to reach out to anyone. Ergen did not say when he spoke to Gardner or McConnell.

 

The trial is scheduled to run until Friday, but the parties and the judge agreed to hold court on Saturday if needed. The states, in their argument that Dish is not a suitable company to become a fourth carrier, pointed to a 2015 letter from the FCC that said two companies owned by Dish had inappropriately claimed $3 billion in taxpayer-funded discounts when they purchased spectrum. A statement from Pai at the time said Dish would need to pay back the $3 billion.

https://finance.yahoo.com/news/dish-founder-ergen-says-asked-023634750.html

 

https://www.finviz.com/insidertrading.ashx?oc=904548&tc=7