WRITE-OFFS – AUSTRALIA

Optus parent writes off billions

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 13 & 18 : 30-Apr-24

Singapore Telecommunications has announced a $S3.1 billion ($3.5 billion) writedown, most of which relates to its Australian subsidiary Optus. However, its potential impact has been offset by Optus’s agreement with TPG Telecom to share regional telecommunications networks; the agreement will see TPG pay Optus service fees of $1.59 billion over 11 years. Optus will use that money to accelerate its investment in 5G networks and complete them two years faster than foreshadowed. TPG’s deal with Optus comes after competition regulators rejected a $1.8 billion deal proposed by TPG and Telstra in 2023 to share networks and spectrum.

CORPORATES
SINGAPORE TELECOMMUNICATIONS LIMITED, SINGTEL OPTUS PTY LTD, TPG TELECOM LIMITED – ASX TPG, TELSTRA CORPORATION LIMITED – ASX TLS

BHP hit in $5.4b nickel wipeout

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Original article by Brad Thompson, Peter Ker, Tom Rabe
The Australian Financial Review – Page: 1 & 17 : 16-Feb-24

BHP’s Nickel West division has made a loss of $US200m ($308m) over the last six month, due to the sharp downturn in the price of the battery metal. BHP has advised that its half-year accounts will include a pre-tax writedown of $5.4bn in the value of the nickel business; the resources group has also warned that it could potentially place the nickel operations – which employ about 3,000 people – in ‘care and maintenance’ mode. Meanwhile, the Western Australian government may provide royalty relief to struggling nickel producers, but Premier Roger Cook says governments at all levels need to step in and assist them to ride out the "significant structural disruption" to the industry.

CORPORATES
BHP GROUP LIMITED – ASX BHP, NICKEL WEST, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET

Rio Tinto pays $43m in Mozambique settlement

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 21-Nov-23

Rio Tinto has reached a settlement with the US Securities & Exchange Commission regarding impairment charges arising from the acquisition of Riversdale Mining in 2011. The $US28 million ($42.7 million) settlement means that Rio Tinto and former executives Tom Albanese and Guy Elliott will not face any fraud charges. Rio Tinto paid $US3.7bn for Riversdale, and subsequently found that the quality of the company’s coking coal in Mozambique was lower than anticipated. Rio Tinto announced writedowns associated with Riversdale in early 2013, but it had been alleged that it should have done so much earlier.

CORPORATES
RIO TINTO LIMITED – ASX RIO, RIVERSDALE MINING LIMITED, UNITED STATES. SECURITIES AND EXCHANGE COMMISSION

10 years on, ASIC drops Rio pursuit

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Original article by Nick Evans
The Australian – Page: 15 : 1-Mar-22

Rio Tinto has agreed to settle the Australian Securities & Investments Commission’s legal action over the $US29bn writedown of its Mozambique coal assets in early 2013. The $750,000 civil penalty for breaching Rio Tinto’s continuous disclosure obligations in the lead-up to the writedown must be approved by the Federal Court. ASIC has dropped most of the original charges against Rio Tinto, as well as former CEO Tom Albanese and ex-CFO Guy Elliott. Rio Tinto had acquired Mozambique-focused Riversdale Mining for $US3.7bn in 2011.

CORPORATES
RIO TINTO LIMITED – ASX RIO, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, RIVERSDALE MINING LIMITED

10 years on, ASIC drops Rio pursuit

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Original article by Nick Evans
The Australian – Page: 15 : 1-Mar-22

Rio Tinto has agreed to settle the Australian Securities & Investments Commission’s legal action over the $US29bn writedown of its Mozambique coal assets in early 2013. The $750,000 civil penalty for breaching Rio Tinto’s continuous disclosure obligations in the lead-up to the writedown must be approved by the Federal Court. ASIC has dropped most of the original charges against Rio Tinto, as well as former CEO Tom Albanese and ex-CFO Guy Elliott. Rio Tinto had acquired Mozambique-focused Riversdale Mining for $US3.7bn in 2011.

CORPORATES
RIO TINTO LIMITED – ASX RIO, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, RIVERSDALE MINING LIMITED

Westpac takes $1.3b profit hit on write-downs

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Original article by James Eyers
The Australian Financial Review – Page: 15 & 20 : 13-Oct-21

Westpac has advised that a $965m writedown associated with its institutional banking division will reduce its profit for the second half of 2020-21 by $1.3bn. Westpac will also make further provision of $172m for customer remediation and potential legal action in the wake of the Hayne royal commission. Westpac’s common equity tier 1 capital ratio will be reduced by 15 basis points as a result of the writedowns. Meanwhile, the Commonwealth Bank has indicated that its own its remedial action plan has been completed, more than three years after entering into an enforceable undertaking with the prudential regulator.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Shell plunges to $6bn loss as virus hits

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Original article by Perry Williams
The Australian – Page: 13 & 16 : 26-Apr-21

Shell Australia has posted a full-year loss of $US4.9bn ($6.3bn), compared with a loss of just $US661m previously. The latest financial result was marred by a $US6.2bn writedown of the energy giant’s Australian operations due to a sharp fall in the crude oil price in 2020. The Prelude floating LNG venture was the primary cause of the big writedown. Australian LNG producers have now incurred combined writedowns of more than $25bn in the wake of the pandemic.

CORPORATES
SHELL COMPANY OF AUSTRALIA LIMITED, ROYAL DUTCH SHELL PLC

ANZ warns of $528m profit hit

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Original article by Joyce Moullakis
The Australian – Page: 17 : 28-Oct-20

The ANZ Bank has advised that its financial results for the second half of 2019-20 will be marred by an after-tax charge of $528m. This includes a $188m charge associated with its customer remediation program and a $138m hit with regard to its software amortisation policy. ANZ will release its full-year results on 29 October. Westpac and National Australia Bank also recently indicated that their upcoming full-year results will include writedowns and impairment charges in the second half.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Dividend doubt as Westpac flags profit hit

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Original article by Joyce Moullakis
The Australian – Page: 13 & 17 : 27-Oct-20

Westpac has advised that its financial results for the second half of 2019-20 will be marred by $1.22bn worth of write-downs and impairment charges. This includes a $406m write-down of its life insurance business and a $415m increase in provision for its settlement with Austrac for breaching anti-money laundering laws. Westpac will also incur an additional $104m in costs associated with its customer remediation program. UBS expects Westpac to pay a final dividend of $0.35 per share, after withholding its interim payout due to the coronavirus pandemic.

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

New Hope cuts jobs, dividend after loss

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Original article by Perry Williams
The Australian – Page: 16 : 23-Sep-20

Coal producer New Hope Corporation has posted a net loss of $156.7m for the year to 31 July, following a $210.4m profit for the previous financial year. The latest result was marred by writedowns totalling $346m, including a $110.7m impairment charge against its New Acland thermal coal mine. New Hope has also retrenched 175 workers at the New Acland mine, whose proposed expansion is subject to a legal challenge from environmentalists. A total of 23 jobs have also been cut at its head office and Brisbane coal terminal, while shareholders will not receive a final dividend.

CORPORATES
NEW HOPE CORPORATION LIMITED – ASX NHC