AGL Energy Limited (AGL):
A battle between gas and the combination of renewables and batteries is playing out in the energy short South Australian market, and the signs are that gas is on a losing wicket. That’s despite recent commitments by AGL Energy and the state government for new gas-fired power plants – a combined commitment of some $645 million. The conventional wisdom that gas will play an increasingly significant role in electricity supply as the market switches more towards renewables to back up that intermittent supply source, has largely gone out the window.
Aurizon Holdings Limited (AZJ):
The head of Aurizon’s bulk business has moved to Perth to sort out the troubled division, as more of the rail group’s executives are relocated away from Brisbane. Investors were surprised by hefty write-downs in Aurizon’s bulk business announced late on Wednesday after the rail group said its performance was deteriorating, necessitating a $526 million impairment charge. The bulk business includes the haulage of iron ore and other mineral resources as well as agricultural products and dangerous goods, and includes operations in Queensland, NSW and Western Australia. The write-downs were particularly heavy in Western Australia, which accounted for $362 million of the impairment charge, leading some analysts to question whether Aurizon was winding down its west coast business. But Aurizon is understood to remain committed to Western Australia, where it has about 1000 employees.
Beach Energy (BPT); Origin Energy Limited (ORG):
Beach Energy is to push harder in its core Cooper Basin acreage, unveiling an up to 67 per cent increase in investment planned for 2017-18 while leaving it still dependent on acquisitions to increase output further. The mid-cap oil and gas producer, which has been examining a potential bid for Origin Energy’s Lattice Energy spin-off, said it would lift spending to as much as $260 million for 2017-18, up from $155 million last year. The planned spend ‘‘provides confidence’’ to forecast production for the coming financial year of between 10 million and 10.6 million barrels of oil equivalent, it said. While that signals roughly flat production from the record 10.55 million boe in 2016-17, it is stronger than several analysts are currently forecasting.
Commonwealth Bank Of Australia (CBA); Westpac Banking Corporation (WBC):
Cyber criminals are selling forged Commonwealth Bank of Australia and Westpac Group credit card, bank and investment statements for $6 to $24 with the promise of delivery anywhere in the world within 24 hours. The documents, obtained on the dark web, are a passport into the nation’s financial services and banking system, including its lucrative $2 trillion of superannuation assets, the world’s fourth-largest pool of managed funds. Stolen identities are used to set up bank accounts for personal loans, mortgages, credit cards, drawing down a victim’s superannuation funds or earning points towards a driving licence and for police checks. Cyber criminals are selling forged Commonwealth Bank of Australia and Westpac Group credit card, bank and investment statements for between $6 and $24, with the promise of delivery anywhere in the world within 24 hours.
Fortescue Metals Group Limited (FMG):
Fortescue Metals Group will chase its most ambitious cost target to date this financial year as it battles weaker prices for the iron ore it sells. The iron ore miner will need to continue a track record of beating market expectations in 2017-18 as it seeks to drive costs lower using only productivity and efficiency initiatives in the face of more challenging mining conditions and a higher Australian dollar. Fortescue lowered its operating, or C1 cash cost, 15 per cent to $US12.16 by the end of the 2017 financial year, for a full-year average of $US12.82 per tonne.
Fairfax Media Limited (FXJ); News Corporation (NWS); REA Group Limited (REA):
Australia’s property market is facing a cooling period, but Citi reckons Fairfax Media’s Domain and New Corporation majority-owned REA Group will benefit from increased listings. The US-based investment bank upgraded both Fairfax, publisher of The Australian Financial Review, and News Corp, to a buy, and increased REA’s 12-month target price. While it might seem counterintuitive that a cooling property market would be good for the online classifieds websites, Citi analyst David Kaynes said the opposite. Citi set a target price for Fairfax of $1.10, News Corp at $20.75 and REA’s at $80. On Thursday, Fairfax shares were flat at 98¢, News Corp was marginally down at $18.38 and REA was also down marginally at $69.19.
(Source: AIMS)
A battle between gas and the combination of renewables and batteries is playing out in the energy short South Australian market, and the signs are that gas is on a losing wicket. That’s despite recent commitments by AGL Energy and the state government for new gas-fired power plants – a combined commitment of some $645 million. The conventional wisdom that gas will play an increasingly significant role in electricity supply as the market switches more towards renewables to back up that intermittent supply source, has largely gone out the window.
Aurizon Holdings Limited (AZJ):
The head of Aurizon’s bulk business has moved to Perth to sort out the troubled division, as more of the rail group’s executives are relocated away from Brisbane. Investors were surprised by hefty write-downs in Aurizon’s bulk business announced late on Wednesday after the rail group said its performance was deteriorating, necessitating a $526 million impairment charge. The bulk business includes the haulage of iron ore and other mineral resources as well as agricultural products and dangerous goods, and includes operations in Queensland, NSW and Western Australia. The write-downs were particularly heavy in Western Australia, which accounted for $362 million of the impairment charge, leading some analysts to question whether Aurizon was winding down its west coast business. But Aurizon is understood to remain committed to Western Australia, where it has about 1000 employees.
Beach Energy (BPT); Origin Energy Limited (ORG):
Beach Energy is to push harder in its core Cooper Basin acreage, unveiling an up to 67 per cent increase in investment planned for 2017-18 while leaving it still dependent on acquisitions to increase output further. The mid-cap oil and gas producer, which has been examining a potential bid for Origin Energy’s Lattice Energy spin-off, said it would lift spending to as much as $260 million for 2017-18, up from $155 million last year. The planned spend ‘‘provides confidence’’ to forecast production for the coming financial year of between 10 million and 10.6 million barrels of oil equivalent, it said. While that signals roughly flat production from the record 10.55 million boe in 2016-17, it is stronger than several analysts are currently forecasting.
Commonwealth Bank Of Australia (CBA); Westpac Banking Corporation (WBC):
Cyber criminals are selling forged Commonwealth Bank of Australia and Westpac Group credit card, bank and investment statements for $6 to $24 with the promise of delivery anywhere in the world within 24 hours. The documents, obtained on the dark web, are a passport into the nation’s financial services and banking system, including its lucrative $2 trillion of superannuation assets, the world’s fourth-largest pool of managed funds. Stolen identities are used to set up bank accounts for personal loans, mortgages, credit cards, drawing down a victim’s superannuation funds or earning points towards a driving licence and for police checks. Cyber criminals are selling forged Commonwealth Bank of Australia and Westpac Group credit card, bank and investment statements for between $6 and $24, with the promise of delivery anywhere in the world within 24 hours.
Fortescue Metals Group Limited (FMG):
Fortescue Metals Group will chase its most ambitious cost target to date this financial year as it battles weaker prices for the iron ore it sells. The iron ore miner will need to continue a track record of beating market expectations in 2017-18 as it seeks to drive costs lower using only productivity and efficiency initiatives in the face of more challenging mining conditions and a higher Australian dollar. Fortescue lowered its operating, or C1 cash cost, 15 per cent to $US12.16 by the end of the 2017 financial year, for a full-year average of $US12.82 per tonne.
Fairfax Media Limited (FXJ); News Corporation (NWS); REA Group Limited (REA):
Australia’s property market is facing a cooling period, but Citi reckons Fairfax Media’s Domain and New Corporation majority-owned REA Group will benefit from increased listings. The US-based investment bank upgraded both Fairfax, publisher of The Australian Financial Review, and News Corp, to a buy, and increased REA’s 12-month target price. While it might seem counterintuitive that a cooling property market would be good for the online classifieds websites, Citi analyst David Kaynes said the opposite. Citi set a target price for Fairfax of $1.10, News Corp at $20.75 and REA’s at $80. On Thursday, Fairfax shares were flat at 98¢, News Corp was marginally down at $18.38 and REA was also down marginally at $69.19.
(Source: AIMS)
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