More Westpac pain ahead as dividends cut

Original article by Joyce Moullakis
The Australian – Page: 17 & 21 : 5-Nov-19

Westpac has posted cash earnings of $6.85bn for 2018-19, which is 15 per cent lower than previously. Its net interest margin fell 10 basis points to 2.12 per cent in the year to 30 September, while the final dividend has been reduced from $0.94 per share to $0.80. Westpac has also advised that its customer remediation costs have totalled $1.9bn pre-tax since 2017, and CEO Brian Hartzer has warned of the potential for further compensation and litigation. Meanwhile, a $2.5bn capital raising will lift Westpac’s common equity tier one capital ratio to around 11.25 per cent.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, MARTIN CURRIE INVESTMENT MANAGEMENT LIMITED, UBS HOLDINGS PTY LTD

ANZ warns of tough going as profit falls

Original article by Richard Gluyas
The Australian – Page: 17 & 21 : 1-Nov-19

The ANZ Bank’s 2018-19 cash profit was steady at $6.47bn, although its net profit fell seven per cent to $5.95bn. ANZ has warned that trading conditions are likely to remain ‘challenging’ for some time, with CEO Shayne Elliott noting that consumers are opting to save rather than spend their money in the low interest rate environment. He has also rejected suggestions that banks are ‘profiteering’, arguing that ANZ’s return on equity of 10.9 per cent is not unreasonable. ANZ’s final dividend of $0.80 per share will be franked to 70 per cent.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Westpac dividend under pressure

Original article by James Eyers
The Australian Financial Review – Page: 17 : 23-Sep-19

There is growing speculation that Westpac could reduce its dividend payout in response to the Reserve Bank of New Zealand’s new capital requirements. Westpac has yet to determine the size of its final dividend for 2018-19, but Credit Suisse has forecast both a lower payout and a capital raising of at least $1.5bn when Westpac releases its full-year results in early November. The prospect of further official interest rate cuts in Australia is also weighing on the earnings of the nation’s banks.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, RESERVE BANK OF NEW ZEALAND, CREDIT SUISSE (AUSTRALIA) LIMITED, CITIGROUP PTY LTD, RESERVE BANK OF AUSTRALIA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, EVANS AND PARTNERS ASIA FUND – ASX EAF, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, PM CAPITAL LIMITED

OZ confident of bouncing back from trade war hit

Original article by Peter Ker
The Australian Financial Review – Page: 21 : 29-Aug-19

Copper and gold producer OZ Minerals has posted a 2019 interim net profit of $43.9m, which is 65 per cent lower than previously. The result was marred by factors such as a fall in the copper price, lower sales volumes and increased investment in exploration. OZ has ramped up investment in its Carrapateena mine, which is slated to commence production of copper concentrate in the final quarter of 2019. OZ shareholders will receive an interim dividend of $0.08 per share.

CORPORATES
OZ MINERALS LIMITED – ASX OZL, SANDFIRE RESOURCES NL – ASX SFR

Forrest reaps $1bn in dividends

Original article by John Stensholt, Nick Evans
The Australian – Page: 17 & 20 : 27-Aug-19

Fortescue Metals Group has posted a record net profit of $US3.2bn ($4.7bn) and revenue of $US10bn for 2018-19. The pure-play iron ore miner’s net debt was $US2.1bn at the end of the financial year, while its cash holdings totalled $US1.9bn. Shareholders will receive a final dividend of $0.24 per share and a full-year payout of $1.14 a share. Fortescue chairman Andrew Forrest will be paid $1.24bn in dividends for the full year, including about $261m from the final dividend. Fortescue expects its iron ore shipments for 2019-20 to be within the range of 170-175 million tonnes, at an average price of $US13.25-$US13.75 per tonne.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA

FMG’s dilemma as record profit meets price fall

Original article by Peter Ker
The Australian Financial Review – Page: 17 : 26-Aug-19

Fortescue Metals Group is forecast to post a record underlying profit of $US3.03bn ($4.49bn) for 2018-19, following a rally in the iron ore price during the financial year. Some analysts expect the pure-play miner to announce a final dividend on 26 August, despite the recent fall in the iron ore price and the fact that Fortescue’s interim dividend was well within its stated target of paying 50-80 per cent of its net profits in dividends.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP GROUP LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, ILUKA RESOURCES LIMITED – ASX ILU

Coles boss bullish as online sales hit $1bn

Original article by Eli Greenblat
The Australian – Page: 19 : 23-Aug-19

Grocery and liquor retailer Coles Group has posted a 2018-19 net profit of $1.434bn, which is 9.1 per cent lower than previously. Earnings from continuing operations were down 8.1 per cent at $1.325bn, and sales fell 1.7 per cent to $38.46bn. Coles’ online sales increased by 30 per cent to $1.1bn, and the division was profitable for the first time in 2018-19. Shareholders will receive a final dividend of $0.24 per share, plus a special dividend of $0.115 a share.

CORPORATES
COLES GROUP LIMITED – ASX COL, COLES ONLINE PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, VINTAGE CELLARS (AUSTRALIA) PTY LTD, LIQUORLAND (AUSTRALIA) PTY LTD, FIRST CHOICE LIQUOR SUPERSTORE, WESFARMERS LIMITED – ASX WES, WOOLWORTHS GROUP LIMITED – ASX WOW, JP MORGAN AUSTRALIA LIMITED, GOLDMAN SACHS AUSTRALIA PTY LTD, CITIGROUP PTY LTD, UBS HOLDINGS PTY LTD

Rising costs and tough TV ad market eat into Nine’s profit

Original article by Lilly Vitorovich
The Australian – Page: 19 : 23-Aug-19

Nine Entertainment Company has posted a 2018-19 statutory net profit from continuing operations of $216.6m, which is three per cent higher than previously. Challenging conditions in the advertising market saw the Nine Network’s revenue fall by six per cent to $1.09bn; its costs rose four per cent to $876.6m, and Nine expects a similar increase in costs during 2019-20. The group’s publishing division posted full-year earnings of $82.7m, compared with $50.2m previously. Shareholders will receive a final dividend of $0.05 per share, and a full-year payout of $0.10.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NINE NETWORK AUSTRALIA LIMITED, FAIRFAX MEDIA LIMITED, MACQUARIE MEDIA LIMITED – ASX MRN, STAN ENTERTAINMENT PTY LTD, DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA, SEVEN WEST MEDIA LIMITED – ASX SWM

BHP to release a dividend smash hit

Original article by Peter Ker
The Australian Financial Review – Page: 14 : 19-Aug-19

The consensus of analysts polled by Bloomberg is that BHP will post a 2018-19 underlying profit of $US9.91bn on 20 August. UBS is more bullish, forecasting a profit of at least $US10bn. UBS also expects shareholders to receive a final dividend of $US0.82 per share, with a full-year payout of $US2.39. Citigroup in turn anticipates a final dividend of $US0.79 a share and a total dividend of $US2.36 for the year. BHP paid out $US8.6bn ($12.7bn) worth of dividends earlier in 2019.

CORPORATES
BHP GROUP LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, CITIGROUP PTY LTD, BLOOMBERG LP, RIO TINTO LIMITED – ASX RIO

Rio warns aluminium on thin ice

Original article by Nick Evans
The Australian – Page: 17 & 21 : 2-Aug-19

Rio Tinto has posted an underlying after-tax profit of $US4.9bn for the first half of 2019, and underlying EBITDA of $US10.25bn. The result was underpinned by its iron ore division, whose underlying EBITDA was 33 per cent higher than previously at $US7.5bn. Meanwhile. CEO Jean-Sebastien Jacques has warned that the future of the Gladstone and Newcastle aluminium smelters will be in doubt unless action is taken to address the energy crisis on Australia’s east coast. Rio Tinto shareholders will receive an interim dividend of $US1.51 per share and a special dividend of $US0.61.

CORPORATES
RIO TINTO LIMITED – ASX RIO, PACIFIC ALUMINIUM PTY LTD, OYU TOLGOI LLC