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Mark Draper

What investors should take away from the reporting season

With inflation likely to remain elevated for some time, investors need to assess how much companies can pass on higher costs to their end customers.

Mark DraperContributor

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Company reporting season can provide an enormous amount of information to investors – not only about the previous six months, but also what lies ahead.

The standout winner last month was the energy sector which benefited from higher oil and gas prices not only because of the Ukraine war, but from years of under-investment since 2014. Woodside Energy generated free cash flow of $US2.568 billion for the six months to June 2022 and forecast that demand from Asia for gas is likely to peak in the mid-2040s, which suggests the energy sector may enjoy higher earnings for longer than many would have believed.

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Mark Draper is a financial adviser with GEM Capital Financial Advice.

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    Original URL: https://www.afr.com/wealth/personal-finance/what-investors-should-take-away-from-the-reporting-season-20220902-p5bf0j