BUSINESS FORECASTING – AUSTRALIA

LNG projects risk start delays

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 13 & 18 : 25-May-15

Wood Mackenzie has forecast that several major LNG projects in Australia will not commence production on schedule. The consulting firm expects Inpex’s Ichthys project to begin production in 2017 rather than late 2016, although Inpex executives have recently indicated that the original timeframe will be met. Wood Mackenzie also anticipates that the Wheatstone and Gorgon projects will face delays in commencing production.

CORPORATES
WOOD MACKENZIE, INPEX CORPORATION, CHEVRON CORPORATION, SAMSUNG HEAVY INDUSTRIES COMPANY LIMITED, ROYAL DUTCH SHELL PLC, DAEWOO CORPORATION, ICHTHYS LNG PTY LTD, WOODSIDE PETROLEUM LIMITED – ASX WPL, CHEVRON AUSTRALIA PTY LTD, DEUTSCHE BANK AG, MACQUARIE PRIVATE WEALTH MANAGEMENT PTY LTD

Services sector ‘well placed’ for LNG boom

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 & 23 : 21-May-15

WorleyParsons CEO Andrew Wood rejects suggestions that mining services groups lack the capacity to handle huge growth in Australia’s LNG industry in coming years. Chevron Australia MD Roy Krzywosinski recently expressed concern about the ability of mining services providers to cope with the increase in LNG production. Wood argues that once projects commence production their maintenance requirements are much lower than in the construction stage.

CORPORATES
WORLEYPARSONS LIMITED – ASX WOR, CHEVRON AUSTRALIA PTY LTD, ACCENTURE AUSTRALIA LIMITED, BG GROUP PLC, CHEVRON CORPORATION, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED, INPEX CORPORATION, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, AUSTRALIAN MINES AND METALS ASSOCIATION (INCORPORATED), KPMG AUSTRALIA PTY LTD

Tax breaks to lift borrowing

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Original article by Clancy Yeates
The Australian Financial Review – Page: 18 : 18-May-15

The Commonwealth Bank of Australia (CBA) expects more small businesses to take out loans as a result of the Australian Government’s May 2015 Budget. CBA’s Clive van Horen says the $A5.5bn small business package should boost the confidence of small businesses and provide them with the incentive to invest in new equipment. However, TS Lim of Bell Potter says that even with the tax breaks, many small businesses will be reluctant to increase their debt.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BELL POTTER SECURITIES LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Sydney Airport pins hopes on Chinese

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Original article by Matt O’Sullivan
The Australian Financial Review – Page: 17 : 15-May-15

Trevor Gerber succeeded Max Moore-Wilton as chairman of Sydney Airport on 14 May 2015. Meanwhile, CEO Kerrie Mather has forecast a big rise in Chinese visitors in coming years, citing factors such as increased flights between Australia and China, the free-trade deal between the two nations and the relaxation of visa requirements for Chinese travellers. Sydney Airport also plans to revamp its international terminal’s duty-free facilities.

CORPORATES
SYDNEY AIRPORT – ASX SYD, GEBR HEINEMANN SE & CO KG, THE NUANCE GROUP (AUSTRALIA) PTY LTD, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT, QANTAS AIRWAYS LIMITED – ASX QAN, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH

AusNet full-year profit dives 87pc on hefty tax charges

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 21 : 15-May-15

Australian-listed AusNet Services has posted a 2014-15 after-tax net profit of $A22.6m, which is 87 per cent lower than previously. The result was marred by a payment to the Australian Taxation Office to resolve a tax dispute. Revenue of $A1.83bn rose by 1.9 per cent and EBITDA was 2.9 per cent higher at $A1.05bn. Investors will receive a final distribution of $A0.418 per security.

CORPORATES
AUSNET SERVICES HOLDINGS PTY LTD – ASX ANV, AUSTRALIAN TAXATION OFFICE, CHINA STATE GRID, SINGAPORE POWER LIMITED, MOODY’S INVESTORS SERVICE INCORPORATED

Deposits levy to hurt big credit unions’ profit

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Original article by Shaun Drummond
The Australian Financial Review – Page: 19 : 15-May-15

The Customer Owned Banking Association believes that the proposed deposits levy will reduce the annual profits of many small credit unions by around seven per cent. CUA estimates that its earnings will be cut by about six per cent, while People’s Choice Credit Union anticipates that its profit will be reduced by 5-7 per cent. The Australian Government will issue its response to the financial system inquiry before deciding whether to proceed with the levy.

CORPORATES
CUSTOMER OWNED BANKING ASSOCIATION, CREDIT UNION AUSTRALIA LIMITED, PEOPLE’S CHOICE CREDIT UNION, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

AACo primed to pay

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Original article by Tim Binsted
The Australian Financial Review – Page: 29 : 14-May-15

Australian Agricultural Company (AACo) has posted a statutory profit of $A9.6m for the year ended 31 March 2015, compared with a $A40m loss previously. Revenue rose by 9.5 per cent to $A346.8m, with the proportion of revenue derived from sales of boxed beef rising from 59 per cent to 77 per cent. MD Jason Strong says AACo intends to eventually make its first dividend payment since 2008.

CORPORATES
AUSTRALIAN AGRICULTURAL COMPANY LIMITED – ASX AAC, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX

Macquarie result wins praise and upgrades

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 18 : 12-May-15

Analysts are upbeat about the earnings outlook for Macquarie Group in fiscal 2016, after its net profit for the year to 31 March 2015 rose by 27 per cent to $A1.6bn. Data from Bloomberg shows that the consensus forecast is for a profit of $A1.79bn in fiscal 2016, and Macquarie itself expects a modest rise in earnings. CLSA has lifted its 12-month share price target to $A102, compared with Macquarie’s closing price of $A78.78 on 11 May.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, BLOOMBERG LP, CLSA AUSTRALIA PTY LTD, MACQUARIE CAPITAL PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, MACQUARIE SECURITIES PTY LTD, UBS HOLDINGS PTY LTD, DEUTSCHE BANK AG

Farmers ‘ready to invest’ again

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Original article by Tim Binsted
The Australian Financial Review – Page: 18 : 11-May-15

Australian farmers’ total debt stands at about $A60.9bn, Rabobank Australia CEO Thos Gieskes says capital investment is on the agenda again. In recent years many farmers have focused on reducing debts incurred during the drought, but Gieskes says farmers are increasingly upbeat about the sector’s outlook. Meanwhile, he says the Federal Government should redirect funding for the Farm Finance Concessional Loans Scheme to rural R&D programs.

CORPORATES
RABOBANK AUSTRALIA LIMITED, AUSTRALIA. DEPT OF AGRICULTURE, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, RABODIRECT

Iron ore fall may hit Rio, BHP capex

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Original article by Tess Ingram
The Australian Financial Review – Page: 1 & 6 : 14-Apr-15

Iron ore was trading at around $US47.53 per tonne on 13 April 2015, and some analysts are increasingly bearish about its outlook. Citigroup now expects iron ore to average just $US37 per tonne for the remainder of 2015, while it is forecast to average $US40 for the following three years. Australian Treasurer Joe Hockey recently warned that iron ore could test the $US35 level. Analysts suggest that BHP Billiton and Rio Tinto could opt to reduce capital expenditure in response to such a scenario, rather than reduce their dividends

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, CITIGROUP PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, UBS HOLDINGS PTY LTD, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, FORTESCUE METALS GROUP LIMITED – ASX FMG, RBC CAPITAL MARKETS, CREDIT SUISSE (AUSTRALIA) LIMITED, ATLAB AUSTRALIA