Woodside expects reduced output

Original article by Perry Williams
The Australian – Page: 20 : 12-Jun-19

Oil and gas producer Woodside Petroleum has advised that its production for 2019 will be at the lower end of its previous guidance of 88-94 million barrels of oil equivalent. Woodside has attributed the revised guidance to a delay in resuming production at the Pluto LNG plant due to maintenance issues. RBC Capital Markets estimates that a two per cent reduction in annual output would reduce Woodside’s earnings by around three per cent.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, RBC CAPITAL MARKETS, BHP GROUP LIMITED – ASX BHP

Banks’ total Hayne bill may top $10b

Original article by James Eyers
The Australian Financial Review – Page: 15 & 18 : 14-May-19

The Commonwealth Bank of Australia has reported cash earnings of $1.7bn for the March quarter, which is 28 per cent lower than previously. CBA’s trading update shows that it made additional pre-tax provisions of $714m for customer remediation during the quarter. The bank’s remediation costs have now topped $2.17bn in total, and it has allocated 400 employees to compensation programs. Meanwhile, Brett Le Mesurier of Shaw & Partners says the major banks and AMP have now incurred combined remediation costs of about $9bn. He adds that this could ultimately rise to around $10bn.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AMP LIMITED – ASX AMP, SHAW AND PARTNERS LIMITED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, KPMG AUSTRALIA PTY LTD, CITIGROUP PTY LTD

NBN bleeds as revenue targets prove elusive

Original article by James Fernyhough
The Australian Financial Review – Page: 15 : 7-May-19

NBN Co has advised that it recorded revenue of $2 billion for the nine months to 31 March, although it posted a net loss of $3.4 billion for the period. As of March, 8.8 million Australian households were ready to connect to the NBN, with fibre-to-the-node the most common form of connection technology. NBN has set an average revenue per user target of $51 per month by 2022, but its ARPU is currently only $45 per month, up from $44 a year ago. NBN Co may need to seek a bailout from the federal government if it does not meet this target.

CORPORATES
NBN CO LIMITED, AUSTRALIAN LABOR PARTY

Westpac profit plunges 22pc as costs mount

Original article by James Frost, James Eyers
The Australian Financial Review – Page: 13 & 16 : 7-May-19

Westpac has posted a 2018-19 interim net profit of $3.296bn, which is 22 per cent lower than previously. The result was marred by provisions of $617m associated with Westpac’s customer remediation program. Westpac’s costs increased by one per cent to $5.04bn, although costs fell by three per cent when compensation and restructuring costs are excluded. Meanwhile, net income was down 10 per cent at $9.979bn for the half-year. CEO Brian Hartzer expects house prices to bottom in late 2019 or early 2020.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WATERMARK FUNDS MANAGEMENT PTY LTD, CLIME ASSET MANAGEMENT PTY LTD, BT FINANCIAL GROUP PTY LTD, WESTPAC NEW ZEALAND LIMITED, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

Newcrest seeks time to fix its tailings dam

Original article by Nick Evans
The Australian – Page: 24 : 1-May-19

Newcrest Mining has advised that it produced 623,000 ounces of gold during the March quarter, which is five per cent lower than in the December 2018 quarter. Its average all-in sustaining cost rose by $18 to $738 an ounce during the period, although its average margin on gold sales rose by $48 to $563 an ounce. Meanwhile, CEO Sandeep Biswas says Newcrest has accepted all of the findings and recommendations of an independent panel’s review of the partial collapse of a tailings dam wall at its Cadia mine in March 2018.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM

Investors wary in peak profit warning season

Original article by David Rogers
The Australian – Page: 28 : 1-May-19

Matthew Ross of Goldman Sachs anticipates an increase in profit warnings ahead of the end of the 2018-19 financial year. He adds that factors such as the federal election will make it hard for listed companies to increase earnings momentum leading into the second half of the calendar year. However, Ross notes that despite a decline in profit margins in the last 18 months, the EBIT margins of 80 per cent of companies remained above long-term averages during the first half of 2018-19.

CORPORATES
GOLDMAN SACHS AUSTRALIA PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, SEEK LIMITED – ASX SEK

Santos warns of PRRT tax hit

Original article by Paul Garvey
The Australian – Page: 20 : 18-Apr-19

Santos has posted sales revenue of $1.01bn for the March quarter, which is 28 per cent higher than previously, while free cash flow rose to a record $327m. Santos has also advised that it produced 18.4 million barrels of oil equivalent during the quarter, which is up 33 per cent year-on-year. Meanwhile, Santos has indicated that its earnings could be adversely affected by changes to the petroleum resource rent tax that take effect on 1 July.

CORPORATES
SANTOS LIMITED – ASX STO, ROYAL DUTCH SHELL PLC, CONOCOPHILLIPS, QUADRANT ENERGY PTY LTD, RBC CAPITAL MARKETS

Whitehaven to roll out driverless trucks

Original article by Nick Evans
The Australian – Page: 21 : 12-Apr-19

Whitehaven Coal has downgraded its sales expectations for 2018-19 to between 20.5 and 21 million tonnes, compared with previous guidance of 21.5 to 22.5 million tonnes. It follows a three per cent fall in production during the March quarter, with output affected by lower yields at its Maules Creek mine in New South Wales. Meanwhile, Whitehaven has advised that it aims to deploy six autonomous haulage trucks at the Maules Creek mine by October. It will be the first time driverless trucks have been used at an Australian coal mine.

CORPORATES
WHITEHAVEN COAL LIMITED – ASX WHC, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, MORGANS FINANCIAL LIMITED

Resources strength holds up reporting season

Original article by David Rogers
The Australian – Page: 28 : 5-Mar-19

Paul Winter of UBS notes that Australia’s latest February reporting season featured more earnings downgrades than upgrades for the first time in the last four years. Hasan Tevfik of MST Marquee adds that while the reporting season was better than expected, this was largely due to a strong performance by the resources sector, which offset weakness in other sectors. Earnings-per-share growth for S&P/ASX 200 stocks is now forecast to be 6.3 per cent in 2018-19, compared with 7.6 per cent in 2017-18.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, UBS HOLDINGS PTY LTD, MST MARQUEE, MORGAN STANLEY AUSTRALIA LIMITED

ASX’s most shorted stocks set for results reporting test

Original article by William McInnes
The Australian Financial Review – Page: 20 : 11-Feb-19

Some of the Australian sharemarket’s most heavily shorted companies will release their latest financial results in the week beginning 11 February, including JB Hi-Fi, Super Retail Group, Bendigo & Adelaide Bank and AMP. JB Hi-Fi is the most shorted S&P/ASX 200 stock, and Jun Bei Liu of Tribeca Investment Partners notes that the retail trading environment is challenging at present. Meanwhile, ASX 200 trading volumes were 11 per cent higher than average during the first week of the reporting season, as fund managers returned to the market.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, JB HI-FI LIMITED – ASX JBH, SUPER RETAIL GROUP LIMITED – ASX SUL, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, AMP LIMITED – ASX AMP, TRIBECA INVESTMENT PARTNERS PTY LTD, FIRETRAIL INVESTMENTS PTY LTD, OPHIR ASSET MANAGEMENT PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, AMCOR LIMITED – ASX AMC, CLEANAWAY WASTE MANAGEMENT LIMITED – ASX CWY, LEND LEASE GROUP LIMITED – ASX LLC, CYBG PLC – ASX CYB, JAMES HARDIE INDUSTRIES PLC – ASX JHX, NICK SCALI LIMITED – ASX NCK, IOOF HOLDINGS LIMITED – ASX IFL, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY