CORPORATE PROFITS – AUSTRALIA

BHP pledges dividend windfall

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Original article by Matt Chambers
The Australian – Page: 19 & 22 : 23-Aug-17

BHP Billiton has posted a 2016-17 net profit of $US5.89bn, compared with a loss of $US6.34bn previously, while its underlying profit rose from $US1.215bn to $US6.732bn. The resources group reduced its net debt by $US9.8bn during the financial year, to $US16bn. BHP has flagged plans to divest its US shale assets, with CEO Andrew Mackenzie indicating that the sale of individual assets is preferable to an IPO of the entire business. BHP has also ruled out further investment in the Jansen potash project in the near-term.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, ELLIOTT MANAGEMENT CORPORATION

BlueScope dives as chief departs

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Original article by Matt Chambers
The Australian – Page: 17 & 20 : 22-Aug-17

BlueScope Steel has reported a sharp rise in net profit for 2016-17, to $A715.9m. However, the steel-maker has advised that EBIT for the first half of 2017-18 will fall from $A527m previously to $A422m, due to factors such as the strong Australian dollar and the impact of rising scrap metal prices in the US on its North Star subsidiary. BlueScope has also revealed that Mark Vassella will succeed CEO Paul O’Malley at the start of 2018, and that the company is the subject of a cartel investigation. BlueScope shares fell $A3.08 to $A11.03 on 21 August.

CORPORATES
BLUESCOPE STEEL LIMITED – ASX BSL, NORTH STAR STEEL, CARGILL INCORPORATED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, CITIGROUP PTY LTD

Failed oOh! merger leaves $3.4m sting in the tail for APN Outdoor

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Original article by Stephen Brook
The Australian – Page: 28 : 22-Aug-17

APN Outdoor Group has posted a 2017 interim net profit of $A15.8m, which is 19 per cent lower than previously. The result was marred by pre-tax costs of $A3.4m arising from its proposed merger with oOh!media, which was abandoned following indications that it was likely to be rejected on competition grounds. APN Outdoor’s revenue for the half-year rose by eight per cent to $A162.3m, as the company continued to expand its network of digital advertising billboards.

CORPORATES
APN OUTDOOR GROUP LIMITED – ASX APO, OOH!MEDIA LIMITED – ASX OML, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, YARRA TRAMS, METRO TRAINS MELBOURNE PTY LTD, ADELAIDE METRO, PERTH RAIL

Near enough is good enough in season so far

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Original article by David Rogers
The Australian – Page: 28 : 22-Aug-17

Analysts’ consensus earnings-per-share estimates for 2017-18 have been downgraded by 0.3 per cent so far in the August 2017 reporting season. Hasan Tevfik of Credit Suisse notes that this compares with EPS upgrades of 1.6 per cent in the February reporting season. Meanwhile, just 19 per cent of Australian-listed companies have exceeded consensus earnings estimates so far in the current reporting season, compared with an average of 40 per cent over the last two decades. Likewise, 38 per cent of companies have failed to meet consensus estimates to date, while the historical average is just 28 per cent.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, STANDARD AND POOR’S ASX 200 INDEX, GOLDMAN SACHS AUSTRALIA PTY LTD, BLUESCOPE STEEL LIMITED – ASX BSL, BEACH ENERGY LIMITED – ASX BPT, G8 EDUCATION LIMITED – ASX GEM, FORTESCUE METALS GROUP LIMITED – ASX FMG, APN OUTDOOR GROUP LIMITED – ASX APO, TELSTRA CORPORATION LIMITED – ASX TLS, TRANSURBAN GROUP LIMITED – ASX TCL, CSL LIMITED – ASX CSL, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, AGL ENERGY LIMITED – ASX AGL, FAIRFAX MEDIA LIMITED – ASX FXJ, DOMAIN.COM.AU, CITIGROUP PTY LTD

FMG powers up with plan to grow, cut debt

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Original article by Tess Ingram
The Australian Financial Review – Page: 11 & 16 : 22-Aug-17

Fortescue Metals Group shareholders will receive a 2016-17 full-year dividend of $A0.45 per share, compared with $A0.15 for the previous financial year. The pure-play iron ore miner has increased its net profit from $US985m in 2015-16 to $US2.1bn for 2016-17, while revenue was 19 per cent higher at $US8.4bn and underlying earnings rose 48 per cent to $US4.7bn. Meanwhile, Fortescue reduced its net debt from $US5.2bn to just $US2.6bn in 2016-17. Fortescue intends to increase its iron ore capital expenditure in 2017-18, while it looking to expand into commodities such as gold and copper.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, UBS HOLDINGS PTY LTD, ALLERON INVESTMENT MANAGEMENT LIMITED

Reporting season needs a real kick-along

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Original article by Philip Baker
The Australian Financial Review – Page: 20 : 21-Aug-17

To date some 76 companies in the S&P/ASX 200 companies have released their financial results so far in the August reporting season. Just 20 per cent of stocks to have issued guidance for 2017-18 have upgraded their earnings-per-share forecast. Blue-chip stocks such as Qantas and BHP Billiton will need to deliver solid earnings results in the next two weeks in order to bolster investor sentiment and boost the benchmark index. A major issue during the current reporting season has been the dearth of companies to have exceeded expectations.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, BHP BILLITON LIMITED – ASX BHP, QANTAS AIRWAYS LIMITED – ASX QAN, WOOLWORTHS LIMITED – ASX WOW, MACQUARIE WEALTH MANAGEMENT, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, TELSTRA CORPORATION LIMITED – ASX TLS, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, JANUS HENDERSON GROUP PLC – ASX JHG, JB HI-FI LIMITED – ASX JBH, IOOF HOLDINGS LIMITED – ASX IFL, ORIGIN ENERGY LIMITED – ASX ORG, SUNCORP GROUP LIMITED – ASX SUN, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, JAMES HARDIE INDUSTRIES PLC – ASX JHX, NEWCREST MINING LIMITED – ASX NCM, CROWN RESORTS LIMITED – ASX CWN, CHALLENGER LIMITED – ASX CGF, KOGAN.COM LIMITED – ASX KGN, THE A2 MILK COMPANY LIMITED – ASX A2M

BHP to deliver six-fold jump in earnings

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Original article by James Thomson
The Australian Financial Review – Page: 13 & 18 : 21-Aug-17

The general consensus of analysts is for BHP Billiton’s underlying earnings for 2016-17 to be within the range of $US7bn to $US7.3bn, compared with $US1.2bn in 2015-16. Most analysts expect BHP’s final dividend to be around $US0.43 per share, although Credit Suisse expects a payout of $US0.36. BHP’s final dividend in 2015-16 was just $US0.14 per share. Meanwhile, investors will be hoping for some guidance on BHP’s plans for its US shale assets and the Jansen potash project.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, CREDIT SUISSE (AUSTRALIA) LIMITED, SHAW AND PARTNERS LIMITED, ELLIOTT MANAGEMENT CORPORATION, DEUTSCHE BANK AG, MACQUARIE GROUP LIMITED – ASX MQG, RIO TINTO LIMITED – ASX RIO, TRIBECA GLOBAL NATURAL RESOURCES FUND, FORTESCUE METALS GROUP LIMITED – ASX FMG

NBN reality hits Telstra investors

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Original article by Max Mason
The Australian Financial Review – Page: 1 & 2 : 18-Aug-17

Telstra has reported 2016-17 EBITDA of $A10.7 billion, up two per cent, while its profit from ongoing operations rose 1.1 per cent to $A3.9 billion. However, shares in the telco fell by 10.6 per cent on 17 August after it advised that dividend payments will be reduced in coming years, as it has to absorb higher costs in regard to the rollout of the national broadband network. Delian Entchev of Watermark Funds Management says Telstra should have changed its dividend payout ratio some time ago.

CORPORATES
TELSTRA CORPORATION LIMITED – ASX TLS, NBN CO LIMITED, WATERMARK FUNDS MANAGEMENT PTY LTD, AUTOHOME INCORPORATED, CITI AUSTRALIA PTY LTD

Shake-up looming for North West Shelf

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Original article by Paul Garvey
The Australian – Page: 19 : 17-Aug-17

Woodside Petroleum has posted a 2017 interim net profit of $US507m, which is 49 per cent higher than previously. Shareholders will receive a half-year dividend of $US0.49 per share, an increase of 44 per cent. Meanwhile, CEO Peter Coleman has indicated that Woodside would be interested in increasing its stake in the North West Shelf project if some of its partners opt to sell down their interest in it as the LNG plant begins shifting its focus to toll-treating gas from third parties.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, MACQUARIE GROUP LIMITED – ASX MQG

Domino’s boss red-faced at missed target

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 & 25 : 16-Aug-17

Domino’s Pizza Enterprises has posted a lower-than-forecast 2016-17 underlying net profit of $A118.5m. The result was 29 per cent higher than previously, compared with guidance of 32.5 per cent growth. Same-store sales growth in Australia and New Zealand fell from 17.4 per cent in the first half to 10 per cent in the second half, and Domino’s has flagged growth of just eight per cent in 2017-18. Domino’s has flagged net profit growth of around 20 per cent in 2017-18.

CORPORATES
DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, DEUTSCHE BANK AG, WATERMARK FUNDS MANAGEMENT PTY LTD