Shares in New Zealand-based fuel company Z Energy Ltd (ASX: ZEL) are down 3.6% to $6.65 after the release of a downgrade to FY19 earnings guidance.
The $2.76 billion market cap company imports, distributes and sells transport fuel to retail and commercial customers.
The revised guidance maintains Z’s operational performance for the first quarter of FY19 has been negatively impacted by unexpected levels of disruption in its supply chain as well as record high pump prices.
As a result, Z’s revised EBITDAF for FY19 has been downgraded from between $450 million and $485 million to between $420 million and $455 million.
Z maintains the issues experienced are “one off” and while the market for the underlying barrel of oil is “volatile” a forecast lower barrel price for the remainder of the year gives Z confidence it will recover from disappointing first quarter performance.
The S&P/ASX 200 has been dragged down by energy stocks hit by an oil slump in the last fortnight, with Oil Search Limited (ASX: OSH) shares down 1.9% to $8.63 at the time of writing and Beach Energy Ltd (ASX: ASX: BPT) also in the red.
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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.