Daily Brief Energy/Materials: James Hardie Industries Plc, Nippon Shokubai, Nickel Industries , PetroTal and more

• In this insight, we take a look at the potential index changes for ASX 200, 100, 50, and 20 in the run-up to the June 2024 index rebal event.
• Prior to the June 2024 review, there could be one intra-review change triggered by the completion of the Silver Lake Resources (SLR AU) / Red 5 Ltd (RED AU) deal.
• Separately, I see one ASX 20 change and two ASX 100 changes for the regular rebalance in June 2024.

• Driving strategic revitalization – Nippon Shokubai is a global chemical company with competitive proprietary technology, a track record of sustained free cash flow generation, and a balance sheet with room for optimization.
• It has embarked on a business transformation, strategically focused on expanding its Solutions business with higher- margin performance chemicals and identifying energy, electronics, and life science sectors as growth markets.
• Organizational changes being conducted aim to enhance human resource development and conduct quicker decision-making. 

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• Nickel Industries

• FY23 production of 14,248 bbl/d had been reported previously and the YE23 cash position of US$105 mm (including ~US$15 mm of restricted cash) is very close to previous indications.
• PetroTal is re-iterating its FY24 production guidance of ~17 mbbl/d with US$134 mm capex.
• Production currently trends ahead of guidance with 24,453 bbl/d in January and 17,411 bbl/d in February.