CORPORATE PROFITS – AUSTRALIA

Woolies takes $2.5bn hit as profit stagnates

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Original article by Eli Greenblat
The Australian – Page: 19 : 21-Feb-19

Grocery giant Woolworths Group has posted a 2018-19 interim net profit of $979m, which is one per cent higher than previously. Net profit from continuing operations, rose by 2.1 per cent to $920m and sales were up 2.2 per cent at $30.704bn. Analyst say the half-year results were disappointing, and Woolworths CEO Brad Banducci has warned that the retail trading environment is likely to remain challenging in the second half. Shareholders will receive an interim dividend of $0.45 per share.

CORPORATES
WOOLWORTHS GROUP LIMITED – ASX WOW, WOOLWORTHS SUPERMARKETS, BIG W DISCOUNT STORES, DAN MURPHY’S, ENDEAVOUR DRINKS, COLES SUPERMARKETS AUSTRALIA PTY LTD, COLES GROUP LIMITED – ASX COL, EG GROUP

Franking fantastic: Forrest’s $327m payday

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Original article by Brad Thompson
The Australian Financial Review – Page: 15 & 18 : 21-Feb-19

Fortescue Metals Group has posted a 2018-19 interim net profit of $US644m ($900m), which is five per cent lower than previously. Fortescue has reported revenue of $US3.54bn for the half-year, and the pure-play iron ore miner has maintained its guidance for shipments of 165 tonnes to 173 million tonnes for the full year. Shareholders will receive an interim dividend of $0.19 per share and a special dividend of $0.11. Fortescue’s founder and chairman Andrew Forrest will receive a total of $327m in dividend payouts, from a total payout of $924m.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIAN LABOR PARTY, SHAW AND PARTNERS LIMITED, RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, VALE SA, INTERNATIONAL COUNCIL ON MINING AND METALS

BHP shares rise on dividend optimism

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Original article by Paul Garvey
The Australian – Page: 21 : 21-Feb-19

Investors have welcomed BHP’s latest interim financial results, with its share price closing at a long-term high of $37.94 on 20 February. The stock has gained 35.5 per cent in the last year and is now trading at or above the share price targets of seven out of the 12 analysts who are tracked by Bloomberg. BHP has flagged a strong rise in full-year profit if commodity prices remain at current levels, while it announced an interim dividend of $US0.55 per share.

CORPORATES
BHP GROUP LIMITED – ASX BHP, BLOOMBERG LP, CREDIT SUISSE (AUSTRALIA) LIMITED, UBS HOLDINGS PTY LTD

Oil Search says gas output will double in PNG

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Original article by Perry Williams
The Australian – Page: 22 : 20-Feb-19

Oil Search has posted a 2018 net profit of $US341.2m, which is 13 per cent higher than previously, with revenue up six per cent to $US1.535bn. A sharp rise in the price of LNG and crude oil during the year helped offset a decline in full-year production due to an earthquake in Papua New Guinea early in the year. Oil Search still aims to double LNG production in PNG by 2024. Shareholders will receive a final dividend of $US0.085 per share, and a full-year payout of $US0.105 a share.

CORPORATES
OIL SEARCH LIMITED – ASX OSH, EXXONMOBIL CORPORATION, TOTAL SA, RBC CAPITAL MARKETS

Seven slashes debt, looks to banks’ ad spend

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Original article by Max Mason
The Australian Financial Review – Page: 23 : 20-Feb-19

Seven West Media has posted a 2018-19 interim underlying net profit of $91.8m, which is 7.8 per cent lower than previously. Revenue was 1.5 per cent lower at $797.4m. Seven has scaled back its full-year EBIT growth forecast to no more than five per cent at best. CEO Tim Worner says Seven was affected by the weaker advertising market, but he expects banks and insurers to increase their advertising expenditure in the wake of the Hayne royal commission. He adds that free-to-air TV is a compelling proposition for banks as they seek to rebuild trust in their brands.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, CCZ EQUITIES PTY LTD, AIRTASKER PTY LTD, HEALTHENGINE PTY LTD, SOCIETYONE AUSTRALIA PTY LTD

BHP resists ramp-up as prices surge

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Original article by Paul Garvey
The Australian – Page: 19 & 22 : 20-Feb-19

BHP has posted an underlying profit of $US3.8bn ($5.3bn) for the first half of 2018-19, which is slightly below the consensus forecast of analysts. Underlying EBITDA also fell slightly short of expectations at $US10.5bn. Meanwhile, CEO Andrew Mackenzie says BHP will not increase its iron ore output despite a rally in the price of the steel input in the wake of the tailings dam disaster in Brazil in January. Shareholders will receive a higher-than-expected interim dividend of $US0.55 per share.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, RBC CAPITAL MARKETS

Westpac cops flak after flat quarterly post

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Original article by James Frost
The Australian Financial Review – Page: 15 & 18 : 19-Feb-19

Westpac has reported a statutory net profit of $1.95bn and a cash profit of $2.04bn for the December 2018 quarter. Both figures were largely unchanged from the two previous quarters. Westpac has also advised that its net interest margin rose during the quarter, while there was an increase in both secured and unsecured mortgage delinquencies. Meanwhile, the Australian Securities & Investments Commission will appeal a Federal Court ruling that a marketing campaign by Westpac’s BT arm between 2014 and 2016 did not breach its financial services licence.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, BT FINANCIAL GROUP PTY LTD, FEDERAL COURT OF AUSTRALIA, CITIGROUP PTY LTD, UBS HOLDINGS PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Earnings hit tipped for BHP

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

BHP will post a net profit of $US3.9bn for the first half of 2018-19, according to the consensus forecast of analysts. This compares with $US4.1bn for the previous corresponding period. EBITDA is tipped to fall from $US12.8bn to $US10.6bn, although an expected strong rise in the petroleum division’s EBITDA will help offset the underperformance elsewhere in BHP’s portfolio. Meanwhile, BHP’s interim dividend is expected to fall from $US0.55 per share to $US0.53, although the downturn in the Australian dollar will boost the dividend payout of local investors.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA

Bigger isn’t better says CEO as Newcrest doubles its profit

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Original article by Paul Garvey
The Australian – Page: 20 : 15-Feb-19

Newcrest Mining has posted a 2018-19 interim net profit of $US237m ($334m), compared with $US98m previously. CEO Sandeep Biswas says the gold miner is well-placed to capitalise on any acquisition opportunities, but stresses that a deal would have to add value for shareholders. Biswas adds that mining companies should not pursue mergers and acquisitions simply to become larger unless the deal will add value. Newcrest shareholders will receive an interim dividend of $US0.075 per share.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, NEWMONT MINING CORPORATION, GOLDCORP INCORPORATED, BARRICK GOLD CORPORATION, RANDGOLD RESOURCES LIMITED, LUNDIN MINING CORPORATION, SOLGOLD PLC

HT&E tunes in to potential deals after strengthening balance sheet

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Original article by Max Mason
The Australian Financial Review – Page: 19 : 14-Feb-19

Radio broadcaster HT&E has posted a net profit of $36.7m for calendar 2018, which is 23 per cent higher than previously. Revenue was five per cent higher at $271.8m and EBITDA rose seven per cent to $71.8m. The company’s Australian Radio Network division has posted revenue of $235.5m and EBITDA of $84.6m for the year. CEO Ciaran Davis says HT&E is open to acquisitions, but he says there are no "definitive opportunities" at present.

CORPORATES
HT&E LIMITED – ASX HT1, AUSTRALIAN RADIO NETWORK PTY LTD, ADSHEL PTY LTD, NZME LIMITED – ASX NZM, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, ALLAN GRAY AUSTRALIA PTY LTD