We provide an update following recent results from Sunland.

On 23 March 2020, Next Generation Clubs Australia (Next Gen, Company) provided an update following the government mandated shutdown of non-essential services. The resulting government mandated shutdown has led to Next Gen temporarily suspending all memberships, while standing down the majority of its employees to align costs with business activity.

On 17 March 2020, Adani Abbot Point Terminal Pty Ltd (AAPT, Company) issued a notice of redemption in relation to the AUD100m notes due May 2020 (2020 Notes), indicating that the 2020 Notes will be fully repaid on 17 April 2020.

The RBA’s QE announcement yesterday focused on ensuring flow of credit to businesses and households via ADIs. We think the lowering of funding cost for banks is a net positive for the institutions in the current challenging operating environment.

We look at the RBA’s latest series of decisions and implications.

On 16 March 2020, S&P Global Ratings (S&P) downgraded its corporate rating on Virgin Australia Holdings Ltd (VAH, Company) by two notches. At the same time S&P downgraded its rating on the Company's senior unsecured notes and affirmed the recovery rating on the notes. S&P placed VAH’s ratings on CreditWatch Negative. The rating action, which in and of itself wasn’t a surprise, is reflective of a view that the Covid-19 fuelled rapid deterioration in the international airline market has spread through to the Australian domestic market.

The coronavirus, followed by the nascent oil price war, has been the largest shock that the most expensive equity markets since the Great Depression and lowest yielding bond markets in history has received.

During this time of dislocation, investors are seeking more safety and capital preservation. As we have noted in the past, while higher risk does offer higher returns, it is important to maintain adequate portfolio quality and diversity.

Following the release of Virgin Australia Holdings Limited’s (VAH, Company) results on 26 February 2020, and taking into account the latest developments on the spread of COVID-19 and the recent escalation between Saudi Arabia and Russia which has led to a sharp drop in oil prices, we are updating our forecasts for VAH.

Eric reported an unaudited net loss after tax of AUD (0.94m) for the six months ended 31 December, 2019 (1H20). The loss compares with a net profit after tax of AUD1.09m in the prior corresponding period.

On 28 February 2020, Pioneer Credit Ltd. released its financial results for the six months ended 31 December 2019 which were impacted by funding constraints that were placed on the Company during the period.

IMF’s 1H20 results provided very few surprises, underpinned by a number of case wins, with gross proceeds from litigation cases of AUD143m. We also note that as of 5 March, 2020, IMF officially changed its name to Omni Bridgeway Limited.

On 27 February 2020, Zip Co Ltd released results for the first six months ended 31 December 2019. Momentum remains strong, with asset quality also remaining sound.

On 28 February 2020, CML Group Limited (CML) released results for the first six months ended 31 December 2019. Overall performance was sound and largely in line with expectations.

We provide an update following NextDC’s 1H20 results.

On 28 February 2020, independent gas storage operator, Rockpoint Gas Storage (Rockpoint, Company), reported its third quarter (3Q20) results for the period ended 31 December 2019. Overall, the top line was very soft, with total realised revenues of USD31.9m for 3Q20 comparing poorly with USD47.2m in 3Q19. Adjusted EBITDA was broadly flat on the prior corresponding period (pcp) at USD25.4m compared to 3Q19 at USD26.3m. However, adjusted EBITDA improved significantly quarter-on-quarter with 2Q20 coming in at only USD3.2m.

In late February 2020, independent exploration and production company, Oasis Petroleum Inc. (OAS, Company) reported its fourth quarter (4Q19) and full year (FY19) results for the period ended 31 December 2019. Overall, the results were solid. Total revenues for 4Q19 and FY19 were USD484m and USD2.1bn, respectively. Despite the lower revenues, OAS has actively managed its cost structure.

On 28 February 2020, natural gas pipeline operator, EQM Midstream Partners LP (EQM, Company) announced its fourth quarter (4Q19) and full year (FY19) results for the period ended 31 December 2019. The Company posted revenues and EBITDA of USD1.63bn and USD1.34bn, up 9% and 34%, respectively on the prior year. In addition to the results, EQM announced it would merge with Equitrans Midstream Corp (ETRN), the current holding company and 60% shareholder of EQM. It is expected that the transaction will close 2Q20. In conjunction with the ETRN merger announcement, EQM also released details of a revised agreement with EQM’s largest customer, EQT Corp (EQT).

Whilst cash offers security. the current low rates mean many investors can no longer accept this asset as a core portfolio holding. We examine an option with similarly high levels of security but improved yields.

We provide an update on David Jones following 1H20 results, which were comparatively softer owing to 1H19 following lower foot traffic from bushfires and softer consumer confidence.