Aussie gas spurs Shell’s $12bn hit

Original article by Perry Williams
The Australian – Page: 13 & 19 : 1-Jul-20

Macquarie expects more companies in Australia’s energy sector to announce writedowns in the second half of 2020, in the wake of the sharp fall in the crude oil price. Global energy giant Shell has advised of impairment charges of up to $US22bn; this includes a writedown of between $US8bn and $US9bn on its gas business, primarily due to its gas projects in Australia. The price of Brent crude is trading at around $US40 a barrel, and Macquarie notes that Australian energy producers typically use a price of $US70 to $US75 a barrel for impairment testing purposes.

CORPORATES
ROYAL DUTCH SHELL PLC, SHELL COMPANY OF AUSTRALIA LIMITED, MACQUARIE GROUP LIMITED – ASX MQG

Commodity rout to dog miners

Original article by Amanda Saunders
The Australian Financial Review – Page: 20 : 22-Jul-15

BHP Billiton recently wrote down the value of its US shale assets by $US2.8bn. Analysts expect many resources groups to announce write-downs of key commodities during the next year, due to the sharp downturn in the prices of commodities such as iron ore, crude oil and coal. BHP, Rio Tinto, Glencore and Anglo American are tipped to report large declines in their underlying earnings as a result of bearish commodity markets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, ANGLO AMERICAN PLATINUM CORPORATION, UBS HOLDINGS PTY LTD, LIBERUM CAPITAL LIMITED

Write-downs in mining nearly erase deal value

Original article by Mark Mulligan
The Australian Financial Review – Page: 27 : 24-Jun-15

Citigroup has warned that there may be further asset impairment charges in the global mining industry, particularly in the metallurgical and coking coal sector. The firm estimates that around 90 per cent of the value of mergers and acquisitions transacted by large mining groups since 2007 has been written off. Aluminium, iron ore and nickel assets have generated the most impairment charges over the last eight years, while Rio Tinto has the highest level of impaired assets.

CORPORATES
CITIGROUP INCORPORATED, RIO TINTO LIMITED – ASX RIO, ANGLO AMERICAN PLC, VALE SA, ALCAN INCORPORATED