Balance Sheet

S&P 500 Companies Sitting on Record $1.9 Trillion in Cash

Reuters | |

Investors are looking to a mounting pile of cash at U.S. companies to provide support for the stock market in coming months, as executives announce plans to increase share buybacks, boost dividends or pour money back into their businesses.

Cash on the balance sheets of S&P 500 companies has swelled to a record $1.9 trillion, compared to $1.5 trillion before the pandemic crisis in early 2020, according to Keith Lerner, chief market strategist at Truist Advisory Services.

BP Expects To Hit Net Debt Target of $35 Billion in Current Quarter, Ahead of Schedule

Reuters | |

Energy group BP said on Tuesday it expects to have hit its $35 billion net debt target in the first quarter of this year, sooner than expected and paving the way for it to deliver on its promise of buying back shares.

“This is a result of earlier than anticipated delivery of disposal proceeds combined with very strong business performance during the first quarter,” Chief Executive Bernard Looney said in a statement.

Global Corporate Debt Issuance To Hit $1 Trillion in 2020

Reuters | |

Companies around the world will take on as much as $1 trillion of new debt in 2020, as they try to shore up their finances against the coronavirus, a new study of 900 top firms has estimated.

The unprecedented increase will see total global corporate debt jump by 12% to around $9.3 trillion, adding to years of accumulation that has left the world’s most indebted firms owing as much as many medium-sized countries.

Last year also saw a sharp 8% rise, driven...

Warren Buffett's Berkshire Hathaway Reduces Share Count, Suggesting Possible Buybacks

Reuters | |

Berkshire Hathaway Inc has reduced its share count by 1.2% since April 23, a regulatory filing shows, suggesting that Chairman Warren Buffett might have become more aggressive in repurchasing its significantly underperforming stock.

The reduction in the conglomerate’s outstanding shares was noted in a Wednesday filing concerning Buffett’s $2.9 billion donation of Berkshire stock to five nonprofits, part of his pledge to give away nearly all his fortune. If Berkshire repurchased those shares, it might have conducted roughly $4.9 billion to $5.9 billion of buybacks, depending on the price, over 2-1/2 months, analysts said.

American Airlines Plans To Raise $3.5 Billion in New Financing

Reuters | |

(Reuters) - American Airlines Group Inc said on Sunday it plans to secure $3.5 billion in new financing, to improve the airline’s liquidity as it grapples with travel restrictions caused by the coronavirus.The company plans to raise $1.5 billion by selling shares and convertible senior notes due 2025, the airline said in a statement.Additionally, the airline said it will offer $1.5 billion in senior secured notes and that it intends to enter into a new $500 million term loan facility due 2024....

Southwest Airlines Sees Improving Travel Demand, Has Enough Cash for Two Years

Reuters | |

(Reuters) - Southwest Airlines said on Wednesday it has enough cash to carry on business for the next two years, up from its prior forecast of 20 months, as travel demand gradually picks up. The company’s assessment is based on current cash and short-term investments of $13.9 billion and an expected average daily cash burn of about $20 million in June. “The company has continued to experience a modest improvement in passenger demand and bookings in June 2020—primarily leisure-driven dema...

United Airlines Pledges MileagePlus Program for $5 Billion Loan

Reuters | |

CHICAGO (Reuters) - United Airlines said on Monday it is pledging its MileagePlus frequent flyer program for a new $5 billion loan aimed at further buffering its liquidity, even as its cash burn rate slows thanks to a steady improvement in demand. So far, United continues to book more new tickets than cancellations for the second and third quarters but said it still expects annual demand to be down on Oct. 1, when government payroll aid for airline employees runs out. Its shar...

American Airlines Forecasts 90% Tumble in Q2 Revenue; Zero Cash Burn Rate By Year-End

Reuters | |

(Reuters) - American Airlines Group Inc on Friday joined Delta Air Lines in forecasting a 90% slump in second-quarter revenue, but said it expects to cut its cash burn rate to about zero by the end of 2020 as travel demand returns. The U.S. airlines have said that a modest recovery in demand was helping slow their daily cash burn rates in June, after the COVID-19 pandemic led to hundreds of flight cancellations. Many airlines are now adding back flights in J...

US Public Companies Sell Stock At Fastest Rate Ever Into Recent Rally

Reuters | |

NEW YORK (Reuters) - U.S. public companies sold more than $60 billion in shares in May, the biggest monthly haul ever, as they capitalized on a stock market rally fueled by hopes that the COVID-19 pandemic is subsiding.The benchmark S&P 500 Index has risen around 40% off of recent lows, hit in late-March at the height of market panic during the coronavirus outbreak, and is now roughly 10% shy of all-time highs hit in February.The whipsawing markets stunted companies’ abil...

Caesars Entertainment Revenue Drops 11.5% in First Quarter; Planning Phased Reopening

Reuters | |

(Reuters) - Caesars Entertainment Corp missed quarterly revenue estimates on Monday as it shuttered its casinos amid nationwide lockdowns to contain the spread of the COVID-19 pandemic. The gambling industry, which counts on air travel and large groups of people in close proximity, is one of the hardest hit from the restrictions imposed to check the health crisis. “Our first-quarter performance reflects the significant revenue declines we experienced as a result of the cl...

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