CORPORATE PROFITS – AUSTRALIA

Forrest’s payout tops $2bn as Fortescue’s profit rises

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Original article by Nick Evans
The Australian – Page: 19 : 20-Feb-20

Fortescue Metals Group has posted a 2019-20 interim net profit of $US2.5bn ($3.7bn), which is 281 per cent higher than previously. The pure-play iron ore miner has reported underlying EBITDA of $US4.2bn and revenue of $US6.5bn for the half-year. Fortescue’s shipments totalled 88.6 million tonnes for the period, and its average realised price for the steel input was 73 per cent higher than the previous corresponding period. Shareholders will receive an interim dividend of $0.76 per share, boosting the wealth of founder Andrew Forrest.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

Virus fears cloud BHP outlook

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Original article by Nick Evans
The Australian – Page: 17 & 22 : 19-Feb-20

BHP has posted a 2019-20 interim net profit of $US4.87bn ($7.29bn), which is 29 per cent higher than previously. Underlying EBITDA rose by 15 per cent to $US12.1bn, with a rise in the price of iron and copper boosting this figure by $US1.5bn. CEO Mike Henry says the coronavirus has had a limited impact on BHP to date, but he warns that commodity exports may be affected if the outbreak is not contained by the end of March. Shareholders will receive a record half-year dividend of $US0.65 per share.

CORPORATES
BHP GROUP LIMITED – ASX BHP

From bad to worse for AMP: $2.5bn loss, $6.3bn outflows, more to come

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Original article by Joyce Moullakis
The Australian – Page: 19 & 23 : 14-Feb-20

Wealth manager AMP has posted a statutory loss of $2.5bn for the 2019 calendar year, while its underlying profit fell by 32 per cent to $464m. A $2.35bn impairment charge in the first half was the major contributor to the big loss. Meanwhile, AMP’s wealth division recorded net cash outflows of $6.3bn for the year, and CEO Francesco De Ferrari says outflows are likely to be high again in 2020. AMP has advised that its customer remediation program is expected to be completed in 2021.

CORPORATES
AMP LIMITED – ASX AMP

South32 calls for clear guidance on scope 3

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Original article by Peter Ker
The Australian Financial Review – Page: 23 : 14-Feb-20

Diversified miner South32 has posted a 2019-20 interim net profit of $US99m, which is 84 per cent lower than previously. The group’s underlying earnings fell 80 per cent to $US131m and revenue was down 16 per cent due to lower prices for its key commodities. CEO Graham Kerr says South32’s focus is on Scope 1 carbon emissions at present, but he argues that all companies will eventually need to address their Scope 3 emissions. He adds that governments must clarify how planning approvals will take Scope 3 emissions into account.

CORPORATES
SOUTH32 LIMITED – ASX S32

NAB may delay MLC split after sound result

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Original article by Richard Gluyas
The Australian – Page: 23 : 14-Feb-20

A trading update from National Australia Bank shows that it booked a cash profit of $1.65bn for the first quarter of its financial year. This is one per cent higher than the quarterly average for the second half of fiscal 2019. Revenue increased by less than one per cent for the quarter, while expenses were three per cent higher. Meanwhile, NAB has signalled that the proposed demerger of its MLC wealth management could be postponed due to the challenging business conditions at present.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MLC LIMITED

CSL keeps pumping up the profit

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Original article by Jared Lynch
The Australian – Page: 17 & 27 : 13-Feb-20

CSL has posted a 2019-20 interim net profit of $US1.248bn, which is eight per cent higher than previously. Sales rose by 8.4 per cent to $US4.7bn, with sales of its immunoglobulin products rising by 26 per cent to $US1.985bn. The biotechnology group expects its full-year profit to be within the range of $US2.1bn to $US2.17bn. CEO Paul Perreault says none of the company’s employees in Wuhan have been infected by the coronavirus and the company has not yet been impacted by the outbreak.

CORPORATES
CSL LIMITED – ASX CSL

CBA to grab bigger share of business

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Original article by James Frost
The Australian Financial Review – Page: 1 & 20 : 13-Feb-20

The Commonwealth Bank of Australia has posted a 2019-20 interim cash profit of $4.47bn; this is 4.3 per cent lower than previously, although analysts had expected a larger decline. CEO Matt Comyn notes that CBA recorded growth in home lending, business lending and deposits during the half-year, and he has flagged plans to seek an even greater share of the business lending market. Comyn adds that CBA’s investment in digital banking has enabled it to build market share among younger customers; this is also a segment that it will target for further growth.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

BHP could pay out $3b extra cash for investors

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Original article by Luke Housego
The Australian Financial Review – Page: 30 : 12-Feb-20

Macquarie has forecast that BHP will report underlying earnings of $US12.52bn for the first half of 2019-20, which would be 14 per cent higher than previously. Macquarie also expects BHP to announce an interim dividend of $US0.76 per share, while the firm adds that there is potential for a special dividend of up to $US0.40 per share. BHP will release its interim results on 18 February.

CORPORATES
BHP GROUP LIMITED – ASX BHP, MACQUARIE GROUP LIMITED – ASX MQG

CBA under pressure to deliver perfect result

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Original article by James Frost, James Thomson
The Australian Financial Review – Page: 15 : 10-Feb-20

The consensus of analysts polled by Bloomberg is for the Commonwealth Bank of Australia to post a 2019-20 interim cash profit of $4.34bn. This compares with $4.68bn for the first half of 2018-19. The bank’s share price has gained 10 per cent in the last three months, leaving the stock vulnerable to a pullback if investors are disappointed by the interim result. Most analysts do not expect CBA to announce a special dividend or a share buyback.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BLOOMBERG LP

Why Atlassian is more profitable than it looks

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Original article by Yolanda Redrup
The Australian Financial Review – Page: 20 : 31-Jan-20

Workplace collaboration software company Atlassian’s net income is not a true reflection of its profitability. This is due to its use of a debt instrument known as ‘exchangeable senior notes’, and which does not exist in Australia. Investors wanting to get a better idea of Atlassian’s actual profitability are urged to compare its operating income or free cash flow year-to-year. Company co-founder Mike Cannon-Brookes has previously observed that Australian investors tend to overvalue profits and undervalue growth.

CORPORATES
ATLASSIAN CORPORATION PLC