Why 88 Energy, Chorus, Incitec Pivot, & Santos shares are sinking

88 Energy Ltd (ASX:88E) and Incitec Pivot Ltd (ASX:IPL) shares are two of four sinking notably lower on Tuesday. Here’s why…

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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a strong gain. At the time of writing, the benchmark index is up 0.95% to 6,894.1 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are sinking:

88 Energy Ltd (ASX: 88E)

The 88 Energy share price has crashed 70% lower to 2.2 cents following the release of a very disappointing operational update. The exploration company has been looking for hydrocarbons via drilling operations at the Peregrine project in Alaska. However, due to a power outage from equipment failure and other challenges, the company was unable to sample its two most prospective zones. Management stated that it is now too late in the season to initiate flow testing operations and the forward program will consist of plugging the well.

Chorus Ltd (ASX: CNU)

The Chorus share price has fallen almost 4% to $6.20. This morning the New Zealand telco revealed that it has reduced its indicative Maximum Allowable Revenue (MAR) range to NZ$680 million to NZ$710 million. This compares to its previous range of NZ$715 million to NZ$755 million.

Incitec Pivot Ltd (ASX: IPL)

The Incitec Pivot share price has tumbled 8.5% lower to $2.67. Investors have been selling the agricultural chemicals company’s shares following an update on its Waggaman ammonia operation. This morning Incitec Pivot advised that the operation is expected recommence production later than previously expected. As a result, management expects an earnings before interest and tax (EBIT) impact of $36 million in FY 2021.

Santos Ltd (ASX: STO)

The Santos share price is down almost 2% to $7.00. Investors have been selling the energy producer’s shares on Tuesday following a pullback in the oil price overnight. Oil prices came under pressure amid concerns over OPEC ramping up production. The S&P/ASX 200 Energy index is down 0.35% this afternoon.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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