WRITE-OFFS – AUSTRALIA

BG writes down $9bn in LNG assets on oil slide

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Original article by Matt Chambers
The Australian – Page: 20 : 4-Feb-15

The recent rapid decline in the global crude oil price continues to affect the LNG sector in Australia. BG Group has been forced to announce provisioning worth $US6.8bn ($A8.87bn) for its Queensland Curtis LNG (QCLNG) project at Gladstone. Another factor in the writedown was the divestment of the pipeline bringing feedstock gas to the plant, to APA Group. BG owns some three quarters of the QCLNG operation. The rival Gladstone LNG and Australia Pacific LNG developments are lead managed by Santos and Origin Energy respectively, which may also soon announce impairments

CORPORATES
BG GROUP PLC, APA GROUP – ASX APA, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, QUEENSLAND CURTIS LNG PTY LTD, GLADSTONE LNG PTY LTD, AUSTRALIA PACIFIC LNG LIMITED, SCHLUMBERGER LIMITED, BHP BILLITON LIMITED – ASX BHP, CONOCOPHILLIPS, GORGON JOINT VENTURE, CHEVRON AUSTRALIA PTY LTD, CHEVRON CORPORATION, MOBIL AUSTRALIA RESOURCES COMPANY PTY LTD, EXXONMOBIL CORPORATION, SHELL DEVELOPMENT (AUSTRALIA) PTY LTD, ROYAL DUTCH SHELL PLC

Iron ore set for $6bn in writedowns

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Original article by Matt Chambers
The Australian – Page: 18 : 28-Jan-15

Provisioning worth $A5.7bn combined due to the falling iron ore price has so far been announced by Australian producers Arrium, Citic Pacific, Atlas Iron, Mount Gibson Iron, Gindalbie Metals and Grange Resources. Fortescue Metals Group may join them when it issues its output data for the December 2014 quarter on 29 January 2015, while the commodity on 27 January declined a further $US2.88 to $US63.54 a tonne. Fortescue shares closed 2.4% lower at $A2.09, after an intraday low of $A1.92 that had not been seen since 2009

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, ARRIUM LIMITED – ASX ARI, ATLAS IRON LIMITED – ASX AGO, MOUNT GIBSON IRON LIMITED – ASX MGX, GINDALBIE METALS LIMITED – ASX GBG, BC IRON LIMITED – ASX BCI, GRANGE RESOURCES LIMITED – ASX GRR, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, CITIC PACIFIC LIMITED, GOLDMAN SACHS AUSTRALIA PTY LTD, METAL BULLETIN PLC, UBS HOLDINGS PTY LTD, BAILLIEU HOLST LIMITED

Woodside flags cuts, write-downs

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 13 & 20 : 16-Jan-15

Woodside Petroleum has reported total sales of $US1.76bn for the final three months of 2014, while sales for the full year were 22.5 per cent higher at $US7.08bn. The oil and gas producer has warned of the potential for asset write-downs of between $US250m and $US400m as a result of the decline in the crude oil price. Woodside also expects to scale back its capital expenditure in 2015. Its shares closed 1.35 per cent lower at $A35.06 on 15 January

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, UBS HOLDINGS PTY LTD, MITSUI AND COMPANY LIMITED, MITSUBISHI CORPORATION, PLATYPUS ASSET MANAGEMENT PTY LTD, PAVILION ENERGY PTE LTD, TEMASEK HOLDINGS (PTE) LTD, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, JP MORGAN AUSTRALIA LIMITED, APACHE CORPORATION

Qantas $3b loss start of comeback

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Original article by Jamie Freed
The Australian Financial Review – Page: 1 & 10 : 29-Aug-14

Restructuring costs and write-downs have prompted Qantas to post a loss of $A2.84bn for the 2013-14 financial year. The national carrier’s underlying loss of $A646m compares with forecasts of a $A750m loss. Linda White of the Australian Services Union says CEO Alan Joyce and Qantas directors should step down as a result of the airline’s record loss. Joyce is upbeat about the outlook for Qantas, which has forecast an underlying profit for the first half of 2014-15

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, AUSTRALIAN SERVICES UNION, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, REGIONAL EXPRESS AIRLINES, REGIONAL EXPRESS HOLDINGS LIMITED – ASX REX, TIGER AIRWAYS AUSTRALIA PTY LTD, AIR NEW ZEALAND LIMITED – ASX AIZ, SINGAPORE AIRLINES LIMITED, ETIHAD AIRWAYS, STANDARD AND POOR’S CORPORATION, BRITISH AIRWAYS PLC, MERRILL LYNCH (AUSTRALIA) PTY LTD, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT, COLONIAL FIRST STATE GROUP LIMITED

Goodman loss unlikely to derail Wilmar bid

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Original article by Blair Speedy
The Australian – Page: 19 : 14-Aug-14

Goodman Fielder has announced a 2013-14 full-year loss of $A405m, due to provisioning worth $A358m in the baked products and grocery units that brings the total writedowns since 2010-11 to $A1.2bn. However experts do not see the result as likely to influence Singapore-based takeover suitor Wilmar and partner First Pacific, which are offering $A0.675 a share for the Australian-listed company. The initial bid had been $A0.65, and was sweetened to $A0.70 to gain access for due diligence before being cut back again. On 13 August 2014 the stock closed $A0.01 lower at $A0.63

CORPORATES
GOODMAN FIELDER LIMITED – ASX GFF, WILMAR INTERNATIONAL LIMITED, DEUTSCHE BANK AG, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, FIRST PACIFIC COMPANY LIMITED

Woolies under pressure over Masters

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Original article by Sue Mitchell
The Australian Financial Review – Page: 20 : 16-Jul-14

Woolworths’ home improvements division posted a loss of $A139m in 2013, and financial market analysts expect the business to post higher losses in 2014 and 2015. Woolworths itself has forecast that the Masters hardware chain will achieve break-even status in 2016, but Goldman Sachs recently suggested that 2019 is more likely. There are also expectations that Woolworths’ 2013-14 financial results will include impairment charges related to the Masters business

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, LOWE’S COMPANIES INCORPORATED, HOME TIMBER AND HARDWARE, WESFARMERS BUNNINGS LIMITED, WESFARMERS LIMITED – ASX WES, MITRE 10 LIMITED, METCASH LIMITED – ASX MTS, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED

Wesfarmers slashes $680m off Target

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Original article by Blair Speedy
The Australian – Page: 19 : 3-Jul-14

Wesfarmers has reduced the value of its Target discount department stores chain by $A680 million. However, Wesfarmers CEO Richard Goyder is confident that the business can be improved. Its earnings fell by 53 per cent to $A70 million in the first half of 2013-14. A turnaround, led by Stuart Machin, will reduce the product range, refresh stores and sell excess stock

CORPORATES
WESFARMERS LIMITED – ASX WES, TARGET AUSTRALIA PTY LTD, COLES GROUP LIMITED, PACIFIC BRANDS LIMITED – ASX PBG, METCASH LIMITED – ASX MTS, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, THE REJECT SHOP LIMITED – ASX TRS, KMART AUSTRALIA LIMITED