Qantas Share Buyback

[cmon0005]

Announcements - Search results - Australian Securities Exchange - ASX

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[TD]Qantas Group Announces Debt Reduction, Share Buy-Back

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Interesting!

 

[ChrisFlyer]

QF have also hidden at the bottom a clarification re: EK, in that QF would like to codeshare on *all* EK services, and would like EK to codeshare on *all* QF & JQ services. OT I realise, but it's in the announcement haha

 

[TheInsider]

A VOTE OF CONFIDENCE IN OUR STRATEGY


Today the Board has announced
that the Qantas Group will repay $650 million in debt ahead of schedule and
invest up to $100 million in a share buyback.

This is a very positive announcement. As our Chairman Leigh Clifford
said to the market today, it reflects the underlying strength of the Qantas
Group and confidence in the hard work we’re doing.

The share buyback highlights the Board’s view that our current share
price does not reflect the true value of the Group as an integrated whole –
including Qantas mainline, Frequent Flyer and Jetstar.

As part of the buyback, we will purchase up to four per cent of
Qantas shares on the market. This effectively returns value to shareholders by
increasing their stake in the company.

Today’s
announcement also highlights Qantas’ strong balance sheet, despite tough times
in the global aviation market. In contrast to Qantas paying off debt faster and
buying back our own shares, many other airlines are taking on new debt and
issuing more shares.

Both the buyback and
accelerated debt reduction will be funded through two recently-completed
transactions – the net proceeds from the sale of our share of StarTrack and the
settlement from Boeing in relation to our changed B787 order.


Today we have also updated the market on our
expected profit for the first half of this financial year (July-December), which
is in the range of between $180 million and $230 million. This is a promising
outlook in a very challenging market, and is due to the hard work of our all our
people right across the Group.

As we approach
our 92[SUP]nd[/SUP] birthday
tomorrow, you can be confident that we are well positioned for the future. We
have a great portfolio of businesses, a strong balance sheet and a clear
strategy to build an even stronger Qantas.


Alan

 

[cmon0005]

Personally I think Debt reduction and share buyback are good things for QF.

Having a healthy Balance sheet is a good long term fail safe in my opinion.

 

[moa999]

Two totally different concepts.

1. Share buyback.
Actually uses $100m of Qantas's cash to return shares - so arguably increases risk.
That said given where the share price is - it is a very good signal to the market that the company believes it is undervalued.

2. Debt repayment ahead of schedule
Not the way this is worded - only "ahead of schedule" not a debt reduction. Given Qantas isn't raising equity or making substantial profits, the only way they can repay one piece of debt is by getting/issuing another/selling something
Appears this is being funded by the Startrack sale and a payment from Boeing for 787 delays

Also very good to see a 1H13 profit forecast - that will also help the share price -- although minus the one-offs of last year,and the recent Emirates result, I would have thought it might have been higher

 

[moa999]

QAN share price up 6c or 5%, against a market that is down 1%

 

[TheInsider]

Qantas buy back announcement includes poor outlook for FY13 | Plane Talking

And once again Ben's 'insightful' comments.. Bahh..

 

[harvyk]

Qantas buy back announcement includes poor outlook for FY13 | Plane Talking

And once again Ben's 'insightful' comments.. Bahh..

Yeah, I normally read Mr Sandilands' articles knowing that he at least may have a reason for what he is saying. But this one reads like a total rant, worthy of any AFF one post wonder.

I'm not going to pretend that I understand the complexities that managing a large company trading on the ASX is, but via my uninformed personal opinion, QF's board have done some interesting things of late which gives me confidence with QF the company. The EK tie-up and moving their hub to DXB, paying of debt early and re-purchasing a set of shares to me does not seem like the actions of a company who are about to go up against the wall.

I'll be honest, I have no love for AJ or the board in general, and I do think they have made some pretty dumb choices in the past, but over the last few months I think they have done some pretty good things as well, and just perhaps it'll mean that I'll still be flying on QFi in 5 years time.

 

[EmilyHoward]

Hmmmm must sell some of my dresses and buy Qantas shares with the proceeds.

EH

 

[MatF]

I dunno, if I was a qantas shareholder (I'm not), I think I'd probably be more interested in seeing a dividend than a buyback, to be honest.
I don't think they've paid one for about 3 years?

 

[Platinum A332]

Qantas buy back announcement includes poor outlook for FY13 | Plane Talking

And once again Ben's 'insightful' comments.. Bahh..

When I read his insights, I just get the impression he will only be happy if QF were to fail completely so he can go "rant rant hahahahahaha I told you so!"

News for him is that QF is not going anywhere. Not now, not in the future, I think the change of tack at the AGM and subsequent share buyback is a strategy to quell the uprising.

 

[markis10]

News for him is that QF is not going anywhere. Not now, not in the future.

That apparently is the issue for Dixon and co, interesting timing for the news articles today about the alternate strategy, clearly something is still stirring!

 

[TheInsider]

The lesser of two evils, Scrotum Face (as alot of staff call Geoff Dixon) or Alan Joyce, i'd want AJ. I apologise in advance.