STRATEGIC PLANNING – AUSTRALIA

Santos to cap Gladstone gas exports

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Original article by Matt Chambers
The Australian – Page: 22 : 25-Aug-17

Oil and gas producer Santos has posted a 2017 interim net loss of $US506m ($A642m), following a $US1.1bn loss for the previous corresponding period. However, it has booked an underlying profit of $US156m, compared with a $A5m loss previously. Revenue rose from $US1.21bn to $US1.5bn. MD ‘Kevin Gallagher says Santos is poised to announce additional domestic gas supply contracts, while it intends to limit the Gladstone LNG project’s annual export volumes to six million tonnes until the mid-2020s.

CORPORATES
SANTOS LIMITED – ASX STO

Shareholders to get shale sale cash within two years, says BHP

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Original article by Matt Chambers
The Australian – Page: 27 : 24-Aug-17

BHP Billiton will aim to divest its US shale assets within two years, according to CFO Peter Beaven. CEO Andrew Mackenzie had previously indicated that the assets would be sold "relatively quickly". Beaven also said the proceeds of the sale are likely to be distributed to shareholders. Analysts differ regarding the valuation of the shale assets, with sale price forecasts generally ranging from $US7bn to $US10bn. The shale assets currently have a book value of $US14bn.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, MORGANS FINANCIAL LIMITED, UBS HOLDINGS PTY LTD, CITIGROUP PTY LTD, ELLIOTT MANAGEMENT CORPORATION, TUDOR PICKERING HOLT AND COMPANY LLC, ANADARKO PETROLEUM CORPORATION

Costco to float online and watch pennies fly

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 23-Aug-17

Costco will boast nine stores in Australia when its third store in Sydney opens in late August. The discount retailer intends to compete directly with Amazon.com in the local market, with plans to expand into online retailing within the next 18 months. Costco Australia MD Patrick Noone says the online store will enable the company to target consumers in regional and rural areas who do not have ready access to its warehouse-style outlets. Online sales now comprises 5-6 per cent of Costco’s overall sales in the US.

CORPORATES
COSTCO WHOLESALE AUSTRALIA PTY LTD, COSTCO WHOLESALE CORPORATION, AMAZON.COM INCORPORATED, MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, METCASH LIMITED – ASX MTS, BUNNINGS GROUP LIMITED, OFFICEWORKS SUPERSTORES PTY LTD, JB HI-FI LIMITED – ASX JBH, SUPER RETAIL GROUP LIMITED – ASX SUL, MORGAN STANLEY AUSTRALIA LIMITED

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

Woodside has offshore platform lithium-ion battery breakthrough

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 13 : 22-Aug-17

Oil and gas producer Woodside Petroleum will reduce its energy costs and carbon emissions by installing a lithium-ion battery storage system on one of the North West Shelf’s offshore platforms. CEO Peter Coleman says Woodside considered renewable energy options before opting to replace one of the gas turbine generators on the Goodwyn offshore platform with battery storage. The battery system is expected to reduce the platform’s carbon emissions by around five per cent, and Woodside may roll out the technology at other NWS platforms if it proves to be successful.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, ABB GROUP

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

Telstra, News in Foxtel deal ahead of float

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Original article by Darren Davidson
The Australian – Page: 17 & 21 : 18-Aug-17

Telstra and News Corp aim to secure regulatory approval for a proposed merger of Foxtel and Fox Sports by April 2018. They each own 50 per cent of Foxtel at present, but Telstra would reduce its stake in the combined Foxtel-Fox Sports to 35 per cent if the deal proceeds. News Corp CEO Robert Thomson says the merger would unlock value for the media group, which would have a 65 per cent stake in Foxtel-Fox Sports. The deal would enhance Foxtel’s ability to bid for sports broadcasting rights amid growing competition.

CORPORATES
NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TELSTRA CORPORATION LIMITED – ASX TLS, FOXTEL MANAGEMENT PTY LTD, FOX SPORTS AUSTRALIA PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, ESPN INCORPORATED, BEIN SPORTS, SINGTEL OPTUS PTY LTD, ENGLISH PREMIER LEAGUE, NETFLIX INCORPORATED, AMAZON.COM INCORPORATED, YOUTUBE INCORPORATED, GOOGLE INCORPORATED, TWITTER INCORPORATED, FACEBOOK INCORPORATED, AUSTRALIAN FOOTBALL LEAGUE, NATIONAL RUGBY LEAGUE, NICK XENOPHON TEAM, 21ST CENTURY FOX INCORPORATED

BHP commits $3.1bn to Chile copper mine

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Original article by Paul Garvey
The Australian – Page: 21 : 18-Aug-17

BHP Billiton will expand its Spence copper mine in Chile at a cost of $US2.46bn ($A3.1bn). BHP had initially estimated in 2015 that expanding the project would cost around $US2.2bn. Dubbed the Spence Growth Option, the project will increase BHP’s annual copper output by about 185,000 tonnes during the first 10 years of the expansion. BHP anticipates an internal rate of return of about 16 per cent from the Spence Growth Option.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, ELLIOTT MANAGEMENT CORPORATION

Sandfire rolls the dice on growth

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Original article by Tess Ingram
The Australian Financial Review – Page: 15 : 14-Aug-17

The mine life of Sandfire Resources’ DeGrussa copper project in Western Australia will be extended until 2022 when it begins processing ore from the Monty deposit. However, Paul Howard of Hartleys estimates that Sandfire will need to make another significant discovery within 12 months due to the time it takes to begin production. Sandfire CEO Karl Simich has indicated that in addition to further exploration, the miner may be prepared to buy assets that do not usually meet its criteria in order to maintain production.

CORPORATES
SANDFIRE RESOURCES NL – ASX SFR, HARTLEYS LIMITED, TALISMAN MINING LIMITED – ASX TLM, GLENCORE PLC, TRAFIGURA BEHEER BV, DIGGERS AND DEALERS FORUM

BHP Nickel West charged by battery boom new revolution

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Original article by Tess Ingram
The Australian Financial Review – Page: 15 & 18 : 10-Aug-17

BHP Billiton aims to capitalise on the growing demand for lithium-ore batteries, with plans to build a nickel sulfate plant at Kwinana in Western Australia. The first stage of the project will cost $US43.2m and have annual production capacity of 100,000 tonnes of nickel sulfate hexahydrate. Stage two of the project would increase the plant’s annual capacity to 200,000 tonnes. The nickel sulfate project has secured the near-term future of BHP’s Nickel West business, which was facing the prospect of closure in coming years after efforts to sell it failed.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, INDEPENDENCE GROUP NL – ASX IGO, WESTERN AREAS LIMITED – ASX WSA, NICKEL WEST, DIGGERS AND DEALERS FORUM, TESLA INCORPORATED