CORPORATE PROFITS – AUSTRALIA

Lynas hit with cost blowout on rare earths plant

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Original article by Brad Thompson
The Australian Financial Review – Page: 16 : 30-Aug-23

Lynas Rare Earths has reported a 2022-23 net profit of $310.7m, compared with $540.8m for the previous financial year; revenue fell from $920m in 2021-22 to $739.3m. The company received an average price of $46.20 per kilogram for its rare earths oxides, compared with an average of $60.30 per kilogram in 2021-22. Meanwhile, Lynas has revealed that the cost of building its cracking and leaching plant at Kalgoorlie in Western Australia has risen to $730m. Its previous estimate was $575m, and the cost increase has been attributed to factors such as the need to meet a deadline of 1 January to cease downstream processing at its plant in Malaysia.

CORPORATES
LYNAS RARE EARTHS LIMITED – ASX LYC

Billionaire MinRes boss charts a new course for lithium

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Original article by Brad Thompson
The Australian Financial Review – Page: 13 : 30-Aug-23

Mineral Resources has reported a 2022-23 net profit of $244m, which is 30 per cent lower than previously. The result was marred by a $552m writedown in the value of its iron ore assets. However, revenue rose by 40 per cent to $4.7bn and underlying EBITDA was 71 per cent higher at $1.8bn. MD Chris Ellison says Mineral Resources is looking at bypassing battery manufacturers and chemicals producers to sell lithium directly to car manufacturers. He has also indicated that the company’s Yilgarn iron ore project is likely to reach the end of its mine life within three years.

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN

BHP rejects talk of iron ore price freefall

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Original article by Nick Evans
The Australian – Page: 13 & 18 : 23-Aug-23

BHP has posted a 2022-23 underlying net profit of $US13.4bn ($20.8bn), which is 37 per cent lower than previously. Its iron ore division reported underlying EBITDA of $US16.6bn for the year, down from $US21.7bn previously but in line with market expectations. BHP produced 285 million tonnes of iron ore in the Pilbara during 2022-23, while it expects output of 282 to 294 million tonnes in 2023-24. CEO Mike Henry has also downplayed fears that the iron ore price might fall below $US80 per tonne if China reduces its steel production. Meanwhile, lower prices and changes to the Queensland government’s royalties regime resulted in a sharp fall in the earnings of BHP’s coking coal mines in 2022-23.

CORPORATES
BHP GROUP LIMITED – ASX BHP

Qantas sets a course for $2.5bn profit

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Original article by Robyn Ironside
The Australian – Page: 13 & 16 : 24-May-23

Qantas has advised that its underlying profit for 2022-23 is expected to be within the range of $2.425bn to $2.725bn. This compares with a loss of $1.8bn for the previous financial year. The carrier’s quarterly update shows that air travel has rebounded from the pandemic-induced downturn; its domestic operations’ revenue is now at 118 per cent of pre-Covid levels, while its international arm’s revenue is at 123 per cent of 2019 levels. Meanwhile, seat capacity is now at 87 per cent of levels prior to the pandemic, and CEO Alan Joyce expects this to reach 93 per cent by the end of 2023.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN

Cashed-up New Hope to double coal volumes

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 22-Mar-23

New Hope Corporation has posted a 2022-23 interim net profit of $668.6m, which is 102 per cent higher than previously. New Hope received an average of $467.40 a tonne for its thermal coal during the six months to 31 January. Shareholders will receive an interim dividend of $0.30 per share and a special dividend of $0.10 a share. Meanwhile, New Hope expects coal production from its existing mines to exceed 14 million tonnes in 2026, compared with 7.6 million tonnes in 2022. However, CEO Rob Bishop warns that a coal shortage is looming, given that the new mines that are opening in Australia will not be sufficient to offset the number of mines that are slated to close in coming years.

CORPORATES
NEW HOPE CORPORATION LIMITED – ASX NHC

No need for a windfall tax: Woodside boss

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Original article by Nick Evans
The Australian – Page: 15 : 28-Feb-23

Woodside Energy has posted a net profit of $US6.5bn ($9.7bn) for the 2022 calendar year, and an underlying profit after tax of $US5.2bn. It is Woodside’s first financial result since its merger with BHP’s petroleum division in June, and CEO Meg O’Neill says it has already achieved the forecast $US400m in operating synergies. Woodside paid $989m in corporate taxes in 2022, up from $333m in the previous year; it also had a petroleum resource rent tax bill of $720m, compared with zero in 2021. O’Neill says a super profits tax on resources groups is not necessary, arguing that the existing tax system is working.

CORPORATES
WOODSIDE ENERGY GROUP LIMITED – ASX WDS, BHP GROUP LIMITED – ASX BHP

BHP to shed coal plays as profit falls

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Original article by Nick Evans
The Australian – Page: 15 & 23 : 22-Feb-23

BHP has posted a 2022-23 interim net profit of $US6.46bn ($9.4bn), which is 24 per cent lower than previously. Rising costs and a fall in the iron ore price weighed on BHP’s earnings for the half-year. BHP has advised that unit costs at its flagship Pilbara iron ore operations rose by 13 year-on-year to $US18.30 per tonne, while it expects unit costs for the full year to be within the range of $US18 to $US19 a tonne. BHP has also revealed plans to sell its Daunia and Blackwater coking coal mines in order to focus on six export-quality mines that are held by its joint venture with Mitsubishi.

CORPORATES
BHP GROUP LIMITED – ASX BHP, MITSUBISHI CORPORATION

Coles warns on price rises as shoppers grab home brands

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Original article by Carrie LaFrenz
The Australian Financial Review – Page: 13 & 18 : 22-Feb-23

Coles Group has advised that CEO Steven Cain will step down on 1 May after five years in the role. He will be succeeded by Leah Weckert, who will be the first woman to run a major supermarket chain in Australia. Coles has posted a 2022-23 interim net profit from continuing operations of $616m, which is 11.4 per cent higher than previously; revenue rose four per cent to $20.59bn. The company has indicated that price inflation rose to 7.7 per cent across its product range in the December quarter, up from 7.1 per cent in the September quarter. However, Cain expects inflation to moderate in the second half of the financial year. Weckert notes that many consumers are switching to home-brand grocery products amid the cost-of-living pressures.

CORPORATES
COLES GROUP LIMITED – ASX COL

No sign of dividends as Seven West seeks revenue lift, debt shrinkage

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Original article by Sam Buckingham-Jones
The Australian Financial Review – Page: 19 : 15-Feb-23

Seven West Media has posted a 2022-23 interim net profit of $114.9m, which is 4.6 per cent lower than previously. Revenue was down 0.5 per cent at $814.6m and EBITDA was 4.8 per cent lower at $205m. CEO James Warburton says the nine interest rate rises since May 2022 have had a significant impact on the advertising market, which he expects to decline to "mid to high single digits" in the second half. Meanwhile, Seven will seek cost savings of $15m to $20m, although Warburton has ruled out job cuts. Seven has cited "prevailing market conditions" for its decision to withhold paying a dividend again.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM

BHP bets on China after $44bn profit

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Original article by Nick Evans
The Australian – Page: 13 & 17 : 17-Aug-22

BHP has posted a record net profit of $US30.9bn ($44.2bn) for 2021-22, which is 173 per cent higher than previously. The result was boosted by a $US7.3bn gain from the merger of its petroleum division with Woodside Energy and a $US9.3bn turnaround at its Queensland coal mines. However, lower iron ore prices saw its flagship division’s underlying EBITDA fall 17.7 per cent year-on-year to $US21.71bn. BHP shipped 282.8 million tonnes of iron ore in 2021-22 and expects 2022-23 shipments to be within the range of 278 to 290 million tonnes. BHP has also indicated that it may look to eventually lift this to 330 million tonnes. However, CEO Mike Henry says Chinese demand for iron ore may be nearing its peak, although he expects commodity sales to remain strong over the next year following China emergence from lockdowns.

CORPORATES
BHP GROUP LIMITED – ASX BHP