Potential $50b wave of gas M&A deals around the corner

roymorgansocial Leave a comment

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 27 : 30-Aug-19

David Low of Wood Mackenzie says mergers and acquisitions activity in Australia’s oil and gas sector could increase in coming years. He identifies Cooper Energy and Senex Energy as being among the smaller companies that could become takeover targets, while Oil Search could also potentially attract suitors following its recent share price weakness. Low adds that international companies such as ConocoPhillips and Eni could opt to divest some or all of their assets in Australia.

CORPORATES
WOOD MACKENZIE, COOPER ENERGY LIMITED – ASX COE, SENEX ENERGY LIMITED – ASX SXY, OIL SEARCH LIMITED – ASX OSH, CONOCOPHILLIPS, ENTE NAZIONALE IDROCARBURI SPA, COMET RIDGE LIMITED – ASX COI, GALILEE ENERGY LIMITED – ASX GLL, WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, QUADRANT ENERGY PTY LTD

Nickel group eyes better off-take deals

roymorgansocial Leave a comment

Original article by Brad Thompson
The Australian Financial Review – Page: 29 : 30-Aug-19

Independence Group has posted a 2018-19 net profit of $76.1m, which is 44 per cent higher than previously. The nickel and gold producer’s revenue rose by two per cent to $792.9m, while shareholders will receive a final dividend of $0.08 per share. Independence Group has allocated $66m for exploration in 2019-20, with the aim of extending the mine life of its Nova nickel project and finding new deposits in Western Australia’s Fraser Range.

CORPORATES
INDEPENDENCE GROUP NL – ASX IGO, GLENCORE PLC, NICKEL WEST, BHP GROUP LIMITED – ASX BHP, ANGLOGOLD ASHANTI LIMITED – ASX AGG, RBC CAPITAL MARKETS

Investment outlook clouded by global risks

roymorgansocial Leave a comment

Original article by David Rogers
The Australian – Page: 25 : 30-Aug-19

Marcel Thieliant of Capital Economics expects the upcoming national accounts data to show that the Australian economy grew by just 0.2 per cent in the June quarter. This follows the release of data showing an 0.5 per cent decline in private new capital expenditure during the quarter; financial markets had anticipated an increase of 0.4 per cent. However, there has been a 16.7 per rise in capital expenditure intentions for 2019-20, with capex estimates in the mining sector revised upwards by 17.7 per cent.

CORPORATES
CAPITAL ECONOMICS LIMITED, UBS HOLDINGS PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, AMP CAPITAL INVESTORS LIMITED, AUSTRALIA. DEPT OF THE TREASURY, BUSINESS COUNCIL OF AUSTRALIA, RESERVE BANK OF AUSTRALIA

Fear of Aussie beef with Trump

roymorgansocial Leave a comment

Original article by Ean Higgins
The Australian – Page: 8 : 30-Aug-19

Trade expert Alan Oxley says the proposed trade deal between the US and Japan is likely to have an impact on Australia’s beef exports. The nation is the biggest supplier of beef to Japan at present, and the trade deal will reduce Australia’s competitive advantage over the US with regard to Japan’s beef import tariffs. Trade Minister Simon Birm­ingham has sought to downplay concerns about the US-Japan trade deal, noting that Australian beef exports to Japan reached record levels in 2018.

CORPORATES
AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, NATIONAL FARMERS’ FEDERATION LIMITED, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, JAPAN. OFFICE OF THE PRIME MINISTER, TW PEARSON AND SON, CATTLE COUNCIL OF AUSTRALIA

Wary APRA orders more stress-tests for banks

roymorgansocial Leave a comment

Original article by Richard Gluyas
The Australian – Page: 17 & 21 : 30-Aug-19

The Australian Prudential Regulation Authority currently undertakes "stress-testing" of the nation’s banks every three years. However, growing concern about the outlook for the domestic and global economies is believed to have prompted APRA to conduct annual stress tests. APRA’s latest corporate also shows that the performance of superannuation funds will also be a focus for the prudential regulator over the next few years; this will include ranking super funds based on a range of metrics.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Hard economic landing would deliver a body blow

roymorgansocial Leave a comment

Original article by Geoff Chambers
The Australian – Page: 4 : 29-Aug-19

PwC’s chief economist Jeremy Thorpe has warned of the potential impact on Australia if the Chinese economy experiences a hard landing. He says the resulting downturn in Australia’s exports to China would reduce government revenue from corporate taxes and mining royalties, while Budget surplus forecasts would need to revised. Thorpe adds that there could also be mine closures and job losses in the resources sector if lower Chinese demand puts downward pressure on commodity prices.

CORPORATES
PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, DELOITTE TOUCHE TOHMATSU LIMITED

Plutus fraudster seeking happiness gets jail

roymorgansocial Leave a comment

Original article by David Marin-Guzman
The Australian Financial Review – Page: 5 : 29-Aug-19

Plutus Payroll’s former general manager Joshua Kitson will be eligible for parole in three years, after being jailed for his role in a $105m tax fraud. His 4.5-year sentence in the Supreme Court of New South Wales is the first to be handed down as a result of the massive fraud. Justice Anthony Payne ruled that although Kitson was not one of the main instigator’s of the fraud, he had played an integral role and described him as an "essential facilitator".

CORPORATES
PLUTUS PAYROLL AUSTRALIA PTY LTD, SUPREME COURT OF NEW SOUTH WALES

NSW Labor suspends party’s HQ boss

roymorgansocial Leave a comment

Original article by Brad Norington
The Australian – Page: 1 & 6 : 29-Aug-19

Labor’s New South Wales branch has suspended its general secretary, Kaila Murnain, as the scandal over political donations from a Chinese property developer deepens. Murnain appeared before the Independent Commission Against Corruption on 28 August, where she admitted that she had been aware of the illegal donation in September 2016 but had remained silent about it on the advice of Labor’s lawyer Ian Robertson. Labor’s NSW parliamentary leader Jodi McKay says she immediately took action to have Murnain suspended.

CORPORATES
AUSTRALIAN LABOR PARTY, NEW SOUTH WALES. INDEPENDENT COMMISSION AGAINST CORRUPTION

Macquarie’s $1.6bn capital raise

roymorgansocial Leave a comment

Original article by Joyce Moullakis
The Australian – Page: 17 & 21 : 29-Aug-19

Macquarie Group has advised that its profit for the six months to 30 September will be about 10 per cent higher than the $1.3bn result for the same period in 2018. Macquarie posted a record profit of $2.98bn for the year to 31 March, and Jonathan Mott of UBS has forecast a profit of $3.04bn for fiscal 2020. Meanwhile, Macquarie is seeking to raise $1bn from institutional investors and up to $600m from retail investors via a share purchase plan. Most of the proceeds will be invested in assets such renewable energy, technology and infrastructure.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD, CADENCE CAPITAL LIMITED – ASX CDT, MOODY’S INVESTORS SERVICE INCORPORATED, CITIGROUP PTY LTD

Staggering WA find raises cheap LNG hope

roymorgansocial Leave a comment

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 21 : 29-Aug-19

Warrego Energy MD Dennis Donald is bullish about the potential resource at the West Erregulla-2 gas discovery in Western Australia. Warrego and joint venture partner Strike Energy recently announced encouraging results from a drilling at the West Erregulla-2 well in the North Perth Basin. Donald says it may be part of a much larger onshore conventional gas resource that could prove to be more economical to develop for LNG production than some offshore gas fields.

CORPORATES
WARREGO ENERGY LIMITED – ASX WGO, STRIKE ENERGY LIMITED – ASX STX, BEACH ENERGY LIMITED – ASX BPT, MITSUI AND COMPANY LIMITED, AWE LIMITED, RBC CAPITAL MARKETS, WESFARMERS LIMITED – ASX WES, CSBP LIMITED