| AAX | Record revenue from operations, up 15.6% to $633.5 million (FY11: $547.9 million). Underlying EBITDA increased to $68.0 million (FY11: $46.9 million). Underlying EBITDA margin increased to 10.7% (FY11: 8.6%). Attributable profit after tax of $41.4 million, up 57.1% (FY11: $26.4 million). Operating cash inflow of $41.2 million, up $29.8 million from 2011. Strong balance sheet with net gearing ratio of 4.1%. Earnings per share increased 56% to 33.5 cents per share. Final 2012 dividend of 10.1 cents per share declared (franked to 50%) | Company report |
| AGO | Atlas Iron will book a non-cash impairment of $258 million following a review of its Horizon 1 and 2 exploration project. The emerging Pilbara iron ore miner said the impairment was due to accounting values attributed to the exploration assets as the value of Atlas shares increased. The impairment relates to the total of deferred Minerals Resources Rent Tax (MRRT) and income tax in its accounts for the six months to December 31, 2012. | iress |
| AIO | Asciano boss John Mullen says the company would consider offers for stakes in all units, including its ports provider Patrick, and that he’s pleased discussions with unions have been productive. | AFR |
| APA | APA Group managing director Mick McCormack has stepped up his call for regulators to allow “appropriate” returns to be made on energy infrastructure assets, warning that otherwise companies will take their investment elsewhere. | AFR |
| APA | Statutory results – Net profit after tax up 221% to $212 million. EBITDA up 52% to $424 million. Operating cash flow down 9% to $144 million. Operating cash flow per security down 18% to 20.2 cents. | Company report |
| ARP | ARB Corporation is pleased to report that the Company achieved a net profit after tax of $20.9 million for the half year ended 31 December 2012. This represented a 14.5% increase over the previous corresponding period and was achieved on a 10.3% increase in sales revenue to $145.7 million. Cash flow from operations in the December 2012 half year of $18.2 million remained strong. ARB had a cash balance of $32.2m as at 31 December 2012 and no debt. The Company intends to pay an increased interim fully franked dividend of 12.5 cents per share | Company report |
| AZJ | AZJ reported a 27% increase in underlying profits to $222M (Shaw $300M) for the HY to December 2012. AZJ remains a company in transformation, and with both identified and unspecified longer term growth opportunities. The group is expanding into NSW coal and WA iron to be able to potentially service all mines in these regions to add to its extensive rail infrastructure and rail service capabilities in QLD. We expect the company to remain active with capital management with the potential to cancel up to 18% of its equity (QLD holding) or facilitate a partial buy back / share sale. The review of the regulated return on assets was not mentioned in the HY presentation – but remains active. This is expected to reduce the “guaranteed” return AZJ gets on its rail infrastructure from its own and third party use. There remain significant cost outs and operational performance improvements that should result in achieving the target 25% EBIT margin by end 2015. AZJ is compensated from loss of revenues from floods and associated rail damage due to the regulated rail infrastructure returns. AZJ is a long term growth story, well-funded with growth opportunities. Competitive dynamics are changing with AIO now entering into the QLD coal rail market.Through the transformation process it is difficult to estimate HY profits, but the operational trend remains positive. | Shaw |
| BCS | BCS placed into administration only seven months after the road opened | AFR |
| BHP | BHP Billiton has appointed non-ferrous division head Andrew Mackenzie as its new chief executive, replacing Marius Kloppers as of May 10. The move comes after BHP reported the lowest interim underlying profits since 2005, but is unrelated to the fall in earnings | AFR |
| BHP | Net profit of $US4.3b, down 58% from $US10.05 in 2011/12. Revenue of $US32.2b, down 14% from $US37.5b. Earnings per share of 79.6 US cents, down from 188.7 US cents. Dividend of 57 US cents per share, up from 55 US cents | iress |
| BOQ | BOQ plans to exploit the improving funding market with plans to buy back $653m in taxpayer-guaranteed debt. | SMH |
| BRG | 1H13 result inline with guidance and consensus confirming ongoing execution of what is expected Sales up 13.2% to $264.4mn (ahead of SHAW $254mn and Consensus $mn) International sales up 23% (Nth America Breville branded product up 32%), Aust up 2.3% EBITDA consistent with AGM guidance up 10.1%. Int up 15.9% (Nth America up 14%, Int Distribution up 24%) Aust up 3.9% NPAT up 8% (slightly below SHAW & Consensus). DPS up 12% to 14cps partly franked. BRG has once again has identified the likely loss of the Keruig contract which contributes an est 10% of EBITDA, but also held out hope of maintaining it albeit at a significantly reduced rate. Guidance to FY13 EBITDA growth of 4-8% ($75.4 to $78.3mn, SHAW $80.7mn, Consensus $80.9mn) We note BRG management has never been anything but conservative. BRG has a multi year history of consistently delivering on its North American, and now International strategy, we believe the potential loss of Keurig is factored into the share price. Minor downward adjustments may be made to FY13 consensus, but nothing too significant is likely. Our FY14 f and consensus may need to come down if Keurig is lost completely. We believe BRG’s emerging strategy of partnering with internationally recognised brands ( Nespresso, Soda Stream and its new brand in the UK), is likely to provide the next significant growth avenue which will continue to drive the BRG share price. | Shaw |
| BRG | Breville Group Limited today reported a 7.8% increase in NPAT to $31.7m (1H12: $29.4m) for the half year to 31 December 2012. This earnings growth was driven by the Group’s international businesses supported by a solid performance in Australia. Consistent with guidance provided at the Annual General Meeting in November 2012, Group EBITDA increased by 10.1% to $49.7m on the previous corresponding period. NPAT and EPS grew at a slightly lower rate than EBITDA as a result of a higher effective tax rate flowing from the changing geographical split of the Group’s earnings. Group revenue in AUD was $264.4m representing a 13.2% increase on the previous corresponding period. | Company report |
| China | PBOC withdrew $4.81b from the banking system, the first liquidity draining in 8 months. | WSJ |
| DTE | Dart Energy advises that it will continue to assess the proposed changes to the State’s approval processes and regulatory regime for coal seam gas by the NSW Government. Whilst this review is undertaken, Dart will continue to focus on its unconventional gas projects across its International asset portfolio. Yesterday’s announcement by the NSW Government highlights the strength of Dart’s diverse portfolio of international projects. This portfolio approach to investment has reduced Dart’s exposure to individual country risk and accordingly its NSW assets form only one component of the company’s total portfolio. | Company report |
| DTL | Revenue and earnings for the six months ended 31 December 2012 (1H13) consistent with guidance provided at 2012 AGM. Revenue of $406.2 million for 1H13, down 7% on 1H12. Challenging market conditions for project investment continued to constrain hardware product and project services revenues. Continuing investments in people and infrastructure to support new offerings and efficient operations. NPAT of $6.8 million for 1H13, down 5% on 1H12. Interim fully franked dividend of 3.45 cents per share, consistent with 1H12. Strong balance sheet with no material debt | Company report |
| FBU | Net earnings of $146 million Operating earnings of $262 million In line with guidance given at ASM New Zealand earnings up, Australia down Cashflow from operations $204 million Up strongly from prior corresponding period Revenues down 3% to $4,380 million Due to divestment of businesses during the year Interim dividend 17.0 cents per share: Fully franked for Australian tax purposes Dividend Reinvestment Plan will be operative for the interim dividend | Company report |
| FMG | FMG has released its 1H13 results. EBITDA came in at $1.1bn ahead of consensus at $1.05bn largely due to better costs. NPAT was $478m vs consensus at $466m. Prudently, FMG has decided not to pay a dividend (consensus was 3c). However the company has stated it will consider a full year dividend in August based on the full year performance incorporating the interim results, and that it expects to move to a profit payout ratio of 30-40% over time. The TPI (Infrastructure) sale process remains on-track .. remember, they have said something should be announced this month and they are looking to wrap this up by the end of FY13 (ie in 4 months time). | Citi |
| FMG | Fortescue Metals said its first-half profit fell by 40%, hit by a collapse in iron ore prices that forced it to slow temporarily an aggressive mine expansion, cut spending and axe around 1,000 jobs. The world’s fourth largest iron ore producer reported a net profit of US$478 million for the six months to Dec. 31, down from US$801 million a year earlier. The result beat a mean US$402.5 million forecast. Fortescue said it wouldn’t pay a dividend for the half-year period, adding that it would reconsider at the end of the fiscal year. Last year it paid an interim dividend of 4cps. Still, the Perth-based company was upbeat about its outlook, amid a recent recovery in iron ore prices and as cost-saving efforts began to pay off early in the second half. The value of iron ore slumped to its lowest level in nearly three years last September but has since recovered to nearly US$160 a metric ton. Chief Executive Nev Power said increased output helped to partly offset price declines in the first half. The company recorded an annualized production rate of 100 million tons in December, up from 64 million tons a year earlier. “We have exited the half a stronger and more resilient company with a renewed focus on achieving a production capacity of 155 million tons per annum by the end of calendar year 2013 to underpin sustainable future earnings and increasing shareholder value,” he said in a statement to the stock exchange. | iress |
| GWA | Kitchen and bathroom fixtures firm GWA Group has suffered a 21 per cent first half profit drop as home building activity remains flat. The group’s net profit in the six months to December 31 dropped to $15.73 million, down from $19.93 million during the corresponding period in 2011. It cited $5.2 million in restructuring costs for the bulk of the reduced profit, following a job cuts announcement in December. Managing director Peter Crowley said the company was reducing the workforce by 12.5 per cent, and would cut another 2.5 per cent in the second half of 2012/13. “We continue to look at acquisition opportunities, but our focus is clearly on ensuring we deliver the short and long term benefits of our major business restructure,” he said in a statement. | Company report |
| HGO | The Kanmantoo Copper Mine’s Indicative Life of Mine (LOM) anticipated to extend to 2023. Life of Mine Production Target of 30-32Mt @ 0.7-0.8% Cu containing approximately 190k tonnes of recoverable copper (based on Ore Reserves, Mineral Resources & Exploration Targets). Ore processing throughput targeted to increase from 2.4Mtpa to 2.8Mtpa during Q2 2013. | Company report |
| IRE | Group revenue (before investments) up 1% on 2011. Stable revenue Resilient result in light of conditions. Appreciation of AUD negatively impacted South African contribution. Group Segment Profit (before investments) down 1.8% on 2011. Investments made in 2012 were $6.9m 3.3% of group revenue. Underlying Group profit Underlying Group profit $54.3m (2011: $59.8m, down 9.0%). Underlying Group profit (before investments) $59.5m (2012:$62.0m, down 3.9%• Reported Group profit $39.2m (2011: $41.3m, down 5.1%). Interim dividend of 24.5¢ 90% franked (2012: 24¢ 83% franked). | Company report |
| IRN | Indophil notes media reports late yesterday stating that a long-awaited environmental approval for the world-class Tampakan Copper-Gold Project has been formally granted by the Philippines Government. While Indophil is not in a position to confirm this important news, Indophil can confirm that the Tampakan Project’s in-country operator, Sagittarius Mines Inc (SMI: Xstrata Copper 62.5%, Indophil 37.5%), last night advised Indophil that it has received the proposed Mine Environmental Compliance Certificate (ECC) from the Environmental Management Bureau within the government’s Department of Environment and Natural Resources (DENR). Further, SMI says it is now in the process of reviewing the terms and conditions contained in the document. Approximately two weeks ago, the Office of Philippines President, His Excellency Benigno Aquino III, made a key and favourable determination in respect of the ECC, instructing the DENR to “resolve the application for an (SMI) ECC without any consideration of requirements other than those imposed under the Environmental Impact Study system itself.” | Company report |
| LEI | Leighton Holdings Limited announced today that the Company had begun exclusive negotiations to sell 70% of its telecommunications assets which include Nextgen Networks, Metronode and Infoplex to the Ontario Teachers’ Pension Plan (Teachers’), through its Long Term Equities Division. The sale price values 100% of these assets at $885 million. | Company report |
| MND | Monadelphous managing director Rob Velletri warned investors that the capacity of the mining services firm to maintain recent growth would be challenged by a difficult economic climate in the medium-term | The Australian |
| NFK | Norfolk Group formally put itself up for sale following a strategic review that began in November when several potential bidders expressed interest in acquiring the company. Norfolk, which has a market value of $85m, said combining with another company could bring down costs and bring new sources of revenue. It is being advised by KPMG Corporate Finance and Allens on the sales process. The Sydney-based company also announced its reported earnings before interest and tax will be hit by a A$16 million writedown following a review of major contracts. It also expects restructuring costs of around A$4 million in the fiscal year through June 30. Norfolk Group said Chief Executive Glenn Wallace was stepping down, and would be replaced by former Dyno Nobel chief executive Peter Richards. | iress |
| NST | Drilling at Paulsens’ Voyager 1 and Voyager 2 lodes returns results of up to 1135gpt and 435gpt respectively. Latest results will be incorporated into an upgrade of the Paulsens’ Project current 403,000oz1 resource Northern Star set to meet or exceed its key 2013 performance targets, including $65m-$85m in surplus cash Rising production and cashflow – underpinned by low total costs (A$850-950/oz), high grade and no bank debt – puts Northern Star on track for further dividends | Company report |
| POH | Phosphagenics has completed a pre-clinical study demonstrating that its oxycodone/TPM technology can reduce local pain without the need to deliver oxycodone into the bloodstream. This discovery has significant commercial implications and the Company intends to commence clinical trials in Quarter 3 of 2013. These trials would be additional to the current oxymorphone and oxycodone patch trials referred to in recent announcements. This product represents a further extension to Phosphagenics’ pain product development program. The finding stems from TPM’s unique ability to deliver molecules in a targeted manner either into the skin or through the skin into the bloodstream, by modifying the formulation. Phosphagenics has formulated TPM to deliver compounds into the skin for its many topical dermatological and personal care applications. In the pre-clinical study on oxycodone/TPM for localised pain, TPM was formulated to deliver oxycodone into the localised area of application, without spillage into the blood. This potential new application of oxycodone to local pain further broadens the Company’s pain franchise. The pre-clinical study in an appropriate pain model demonstrated a significant reduction in pain after topical application of the oxycodone/TPM formulation, as compared to a control. The investigation also found the opioid worked rapidly and did not enter the bloodstream. | Company report |
| SDM | SDM’s 1H13 results were pre-announced on 5-Feb-13 with 1H13 NPAT of $12.3m (-37% on pcp; in line with Shaw and adjusted market estimates). Revenues, earnings, margins and profit all down markedly on pcp – weak conditions in the Australian coal sector, predominantly Queensland, has claimed another scalp in SDM. This comes post the EHL, RQL and BOL downgrades and negative commentary from BKN and DOW, recently which were on the back of anaemic north-Qld. coal volumes. Divisionally weak: Projects – revs -33% with EBITA -39% and margins down from 9.1% to 8.4%, largely driven by lower coal activity, new project completions and high fixed costs as a % of lower earnings base. Operations – revs +12% (new Narrabri contract + expanded Middlemount scope) with EBITA -26% and margins down from 11.5% to 7.6%, largely driven by lower volumes and higher costs. Critically, if not worryingly, order book of crunched from $604m in 1H12 to $477m at Jun-12 to $270m at Dec-12 – comprising $75m for Projects and $195m. Balance sheet still strong but lower net cash of $49.3m – vs. $65.3m net cash in pcp. Operating cashflows plummeted 84% from $28.5m to $4.6m – largely driven by increased tax, lower earnings and additional working cap of $6.0m vs. $2.8m pcp. Interim dividend declared of 3.0cps (ff) – vs. 4.5 cps in pcp. Although the NPAT was pre-announced on 5-Feb-13, the extent of that poor result is now evident in the equally poor order book, margin attrition and cashflows. Not much to really like in this result at all – not least the generic and nebulous outlook statement which doesn’t help matters. Until we see resolution on several key contracts being renewed in FY13 (dependent on stronger coal pricing) and evidence of order book growth through SDM being successful in bidding for upcoming coal and operations contracts we advocate a high degree of caution | Shaw |
| SDM | Revenue $256.3m down 20.9% from $324.1m Reported Net Profit After Tax (NPAT) $12.3m down 36.5% from $19.4m Underlying Earnings Per Share (EPS) 6.9 cps down 29.8% from 9.8 cps Fully-franked interim dividend declared of 3.0 cps down 33.3% from 4.5 cps Net cash of $49.3m | Company report |
| SEK | SEEK Limited reported Revenue of A$275.3m, EBITDA of A$107.5m and NPAT of A$67.5m for the 6 months to 31 December 2012. Compared to the prior corresponding period (“pcp”), this represents Revenue growth of 32%, EBITDA growth of 20% and NPAT growth of 11%. Today, SEEK also announced the finalisation of the Zhaopin transaction. In commenting on the results, SEEK CEO Andrew Bassat said “This was another record half year result that was achieved despite weak macro conditions and a re-investment focus in our international businesses. The key growth drivers of this result were pleasing growth across Zhaopin, Brasil Online and strong performances across all of SEEK’s Education businesses”. | Company report |
| SMX | SMS Management & Technology Limited (SMS), Australia’s leading consulting, technology and systems integration services provider, today reported net profit after tax of $12.9 million1 for the half year ended 31 December 2012. The profit result was 15% below the same period last year largely due to reduced revenue from the ICT sector and an Asian based client. Mr. Tom Stianos, Chief Executive Officer said, “sales to all other sectors combined have been resilient with revenue holding up relatively well despite the challenging trading conditions.” Revenue from services of $144.8m was 15% down. The Company has taken action to reduce overhead costs and adjust capacity to match demand. While trading conditions have been subdued, new projects currently under negotiation (including in Asia) and a stronger sales pipeline point to a return to growth in FY14. | Company report |
| SPN | SP AusNet Successfully Prices 700M Hong Kong Dollar Offer | Company report |
| SRV | Revenue of $102,668,000 for H1 FY 2013. Statutory NPBT of $12,472,000 for H1 FY 2013. Leasehold depreciation rate changed from 15% to 10%. Normalised NPBT of $9,384,000 for H1 FY 2013, 15% above H1 FY 2012. Statutory mature floor NPBT of $19,551,000 for H1 FY 2013. Free cash produced (before tax) of $18,059,000 for H1 FY 2013. Unencumbered cash balances of $87,149,000 at 31 December 2012. NTA backing of $1.86 per share at 31 December 2012. Interim dividend of 7.50 cents per share, 100% franked for H1 FY 2013 Forecast final dividend of 7.50 cents per share, 100% franked for FY 2013 | Company report |
| SUL | Revenues and LFL sales were up across all divisions: Auto – Sales +8.0% to $400.2m (LFL +5.2%), EBIT +11.7% to $41.0m, Margins +30bp to 10.2% – driven by an increase in customer numbers and average item value. WA was also particularly strong. Leisure – Sales +14.9% to $283.9m (LFL +2.8%), EBIT +12.7% to $26.6m, Margins -20bp to 9.4% – owing to growth in average item value and average transaction value. However, both Ray’s Outdoors and Fishing Camping Outdoors (FCO) achieved comparatively lower sales per square metre than the other divisions. A business review is underway to increase their performance. Sports – Sales +149% to $352.4m (LFL +8.3%), EBIT +141% to $36.1m, Margins 10.2% – result included 26 weeks of Rebel / Amart compared to 9 weeks in pcp. Cycles also now included in Sports Retailing. Sales were strong in both Rebel and Amart. LFL sales growth driven by increased traffic and average transaction value. Balance sheet strengthens – net debt reduced by $96.4m to $244.6m. Operating cashflow (pre store set up costs) surged from $106.8m to $226.6m – however, $75m of the increase included timing benefits. Interim dividend of 17.0cps (ff) declared – up 4.0cps (+31%) on pcp. Outlook still positive – “Like for like sales growth has been circa 5.5% in the Auto division, 10% in the Leisure division and 8% in the Sports division for the first seven weeks of the second half… We continue to expect to deliver improvements in full year EBIT margin in our Auto and Leisure divisions and to deliver full year EBIT margin in our Rebel and Amart businesses ahead of our acquisition assumptions. We expect to complete our review of the Ray’s Outdoors and FCO businesses and the Cycles store within a store trial by May of this year.” Strong result all round except for the bottom line, which was slightly lower than ours and the market’s (lofty)expectations. Outlook still very positive though. SUL has achieved robust EPS growth over the past few years and looks capable of continuing to do so for the medium term | Shaw |
| SUL | Leisure and sports retailer Super Retail Group has increased its first half profit by 73.5 per cent due to its leading market position. The company on Wednesday posted a first half profit of $60.61 million, up from $34.94 million in the previous corresponding period. Revenue from continuing operations also lifted, by 36.6 per cent to $1.037 billion from $759 million in the 2011/12 first half. Managing director Peter Birtles said the results were attributable to the group’s market-leading position in a number of leisure retail categories and its commitment to new products and efficiencies in its supply chain. | iress |
| SUN | Listed insurer Suncorp Group’s net profit has jumped 58 per cent to $574 million during the six months to December thanks to benign weather conditions, improved investment markets and business efficiencies | AFR |
| SUN | SUN has released its first half 2013 results, with a cash profit of $616m (2% below consensus), earnings per share of 48 cents, and dividends per share of 25 cents. Combined 3% ahead pre-tax, -2% post tax (high tax rate). General insurance very strong, bank poor result. IAG to rally, SUN might fall a little given run had this month. Insurance margins 18.6% (huge). Bad debt charge $194m (bad). Core Bank margins 1.83%, -6bps (disappointing). Excess capital $1.27bn (fine) | Shaw |
| SWM | Seven West Media has recorded a net loss of $109 million for the first half of 2012-13 after posting $255 million in impairment charges. | AFR |
| SWM | Seven West Media has posted a loss of $109.3 million for the first half of the financial year because of restructure costs and the lower value of its magazines. Seven West, the owner of the Seven Network and West Australian newspaper group, took charges of more than $255 million in the six months to December 31 relating to redundancies and writedowns on its magazines and investment in Yahoo!7. The loss compares to a $163 million net profit in the previous corresponding period. Earnings before significant items, net finance costs and tax (EBIT) in the six months to December was $259.3 million, above its previous guidance of $250 million. “Good progress is being made on driving greater efficiencies across our business to manage our costs,” chief executive Don Voelte said. “These initiatives will assist in our performance in the second half of 2012/13 and in 2013/14.” | iress |
| SYD | CEO Kerrie Mather said “January saw total passenger growth of 3.8%, with more than two million domestic passengers using Sydney Airport. International passenger traffic growth in January was impacted by Chinese New Year falling later in the year than in 2012. We look forward to welcoming our customers arriving and departing during February to celebrate the lunar new year | Company report |
| TME | Revenue up 18% YoY to $80.4m. Net profit after tax up 3% YoY to $37.4m. EBITDA up 14% YoY to $59.2m. Dividend of 7.5 cps (7% higher than forecast) to be paid on 26 March. Achieved the final set of overall revenue and earnings targets set out in IPO prospectus. More than one-third of all visits to Trade Me are from a mobile device. Strong prospects – good opportunities in our classifieds businesses, and a large long-term opportunity in online retail | Company report |
| TOL | Toll Group today released its interim results for the six months ended 31 December 2012, with strong returns in a number of core Australian businesses underpinning an improved result. Sales revenue increased 2.5 per cent on the same time last year to A$4.5 billion, and net profit after tax before nonrecurring items increased 7.6 per cent to A$174 million. Earnings per share increased by 1.1 cent to 25.4 cents per share, and Toll’s interim dividend increased 1.0 cent per share to 12.5 cents. Toll Group sales revenue was $4.5 billion for the six months ended 31 December 2012, up 2.5% on the prior corresponding period. Total operating profit (EBIT) before non-recurring items was $256.4 million, up 3.3%. Net profit after tax (before non-recurring items) was $173.5 million, up 7.6%. | Company report |
| TRS | Sales of $327.5 million up 11.9% on previous corresponding period (pcp). NPAT of $20.1 million up 21.2% on pcp. Comparable store sales growth of 2.1% (1st Qtr: up 4.2%; 2nd Qtr: up 0.7%). 17 new stores opened and 2 relocations. Insurance claim finalised above amounts recorded in FY2012. Interim fully franked dividend of 24.0 cents per share | Company report |
| WBC | WBC plans to invest $8b in its new 5 year sustainability strategy to tackle pressing social issues | AFR |
| WPL | A critical deadline looming on Woodside Petroleum’s Sunrise gas project in the Timor Sea, which could throw the whole venture into doubt, may cloud an expected 20 per cent jump in full-year earnings | AFR |
| WPL | US$2.98bn reported profit, dividend up 18%: WPL delivered a full year 2012 result of US$2.983bn and a solid final dividend of US$0.65/share bringing the total dividend for 2012 to US$1.30/share up 18%. The underlying result was in fact US$2.061bn, right in-line with market expectations. The difference was a US$974m after tax profit on the sale of an 11.7% interest in the Browse Basin gas field. Net debt was reduced by 62.1% to US$1.92bn with operating cash flow up 55% to US$3.48bn. Gearing has fallen to 11.2% from 28.6% in 2011. North West Shelf & Pluto Continue to Deliver: The North West Shelf operations continued to deliver at a reliability rate of 98% while Pluto had a very strong commencement to operating life and will have a full 12 month contribution to cash flow and profits in 2013. Base production in 2012 was 84.9MMboe, up 31.4% on 2011 (64.6MMboe) while sales were up 31.1% to 83.8MMboe. Revenue was up 30% to US$6,223m (US$4,802m). WPL has guided to a production range of 88-94MMboe for 2013. The Vincent oil field is expected to be offline for a period of 6 months and hence we would expect the actual to be at the lower end of WPL’s production range. Cash Flow Turnaround…Right on Schedule: During the 6 years of the Pluto development, WPL spent a total of US$12.4bn on the project. Pluto contributed US$649m in added profits during the period. Free cash flow for 2012 was a staggering US$3.64bn. This compares with an accumulated US$6.02bn cash flow deficit in the prior 4 years. WPL is budgeting US$2.578bn in capital expenditure during 2013 with only US$113m for Pluto and WPL’s new Israeli project, the Leviathan gas field, expected to have US$1,122m in expenditure (drilling and project development scoping work). With expected cash flows of US$3.86bn for 2013 on consensus numbers, the scope of a special dividend or buyback cannot be discounted. We also see the potential of acquisitions in both oil and gas with perhaps a small acquisition in shale gas. WPL has been an outstanding performer in project delivery and reliability. Pluto marks the end of a major capital investment period and the beginning of a high cash flow generating 2-3 years. Leviathan will be the focus for WPL over the next 3 years with initial production expected in 2017. A staged multi-billion dollar investment here will not affect WPL’s ability to pay high dividends and/or make selective acquisitions. | Shaw |
| WPL | Record reported net profit of $2,983 million, up 98% (2011: $1,507 million). Record underlying net profit of $2,061 million, up 25% (2011: $1,655 million). Record operating cash flow of $3,475 million, up 55%. Annual records for production (84.9 million barrels of oil equivalent (MMboe), up 31%) and sales revenue ($6,223 million, up 30%) were achieved due to the outstanding performance of the Pluto LNG Plant since start-up in April 2012, together with ongoing reliability of the foundation business. Major project progress: Work continues on North West Shelf (NWS) North Rankin Redevelopment and Greater Western Flank projects, evaluation of tenders for Browse LNG, scoping for Greater Enfield Area oil developments and engagement on Sunrise LNG. A fully franked final dividend of US 65 cents per share (cps) was declared, up 18.2% (2011: US 55 cps). The 2012 dividend total of US 130 cps fully franked (2011: US 110 cps) represents a record US cps annual dividend. Balance sheet positioned for growth with available funds of $4.1 billion ($2.4 billion in cash and $1.7 billion in undrawn debt facilities), up from $2.2 billion at the end of 2011. Execution of strategy to build a broader portfolio as evidenced by new entries into Myanmar and Israel | Company report |
Filed under: Company News
