Australia and New Zealand Banking Group (ANZ):
ANZ Banking Group has admitted it breached responsible lending provisions two dozen times and will pay $5 million in remediation for selling customers dodgy loans through its previously-owned Esanda car finance business. ANZ may also be on the hook for a separate penalty, which will be decided by the Federal Court, which has a first case hearing in early February. The bank has struck a settlement agreement with the Australian Securities & Investments Commission after the watchdog launched a Federal Court action against the bank for loans sold through three brokers to ANZ. ANZ had admitted to 24 contraventions of responsible lending provisions, which included selling loans based on unreliable and easily falsified pay slips from the brokers.
BHP Billiton Limited (BHP):
BHP has cut its coking coal export target for fiscal 2018 and revealed its financial results in February would include exceptional items related to US president Donald Trump's tax cuts and old conveyors at the Escondida copper mine in Chile. Queensland coking coal miners have been experiencing shipping delays in recent months which date back to the disruption caused by Cyclone Debbie in April, and BHP said it had also experienced geotechnical issues at two of its Queensland coking coal mines. BHP shipped 10 million tonnes of coking coal in the final three months of 2017 taking its half year tally to 20 million tonnes; a rate below what is required to meet BHP's full year target of shipping 44 million to 46 million tonnes. The company said it now expected to ship between 41 million and 43 million tonnes in fiscal 2018, and cost guidance for the coking coal division would be increased.
Myer Holdings Ltd (MYR):
Embattled department store retailer Myer has appointed a new chief operating officer and chief financial officer and is stepping up cost cutting after posting an unprecedented fall in sales before Christmas. In a major management restructure announced on Thursday, Myer has promoted chief digital and data officer Mark Cripsey to the role of chief operating officer and hired former Spotless executive Nigel Chadwick to replace Grant Devonport as chief financial officer. Mr Devonport will step down as CFO following a transition period. The management restructure comes barely a month after chief executive Richard Umbers warned that a 5 per cent drop in sales in the first two weeks of December would have a "material" impact on earnings for the six months ending January. Mr Umbers said on Thursday the management changes were aimed at better integrating Myer's digital, online and bricks and mortar operations and capitalising on structural shifts in retailing. Shares are down 1.5 per cent.
Whitehaven Coal Ltd (WHC):
Whitehaven Coal has struck a bullish tone about the outlook for thermal coal used by power plants to generate electricity, after taking advantage of high prices to sell 10 per cent more of the commodity in the second quarter than a year ago. Whitehaven (WHC) said it sold 5.8 million metric tons of coal in the three months through December, bringing sales for the half year to 11.9 million tons. It received an average price of US$98 for each ton of thermal coal sold in the quarter, representing the highest price achieved in any quarter for at least a year. Whitehaven attributed the unexpected strength in prices to factors including Chinese consumption and demand for higher-quality coals from southeast Asia. At the same time, buying among traditional Asian markets of Japan, Korea and Taiwan remained strong. “The outlook for thermal coal in the short to medium term is favourable,” said Whitehaven, noting that poor weather in Indonesia and labour-relations issues in Australia have held back supply.
Woodside Petroleum Limited (WPL):
Woodside Petroleum is expecting a bumper year ahead for LNG production, following the release of a positive fourth-quarter production report boosted by record LNG production at its Pluto mine. Woodside (WPL) said it expects production in 2018 to rise to between 85 million and 90 million barrels of oil equivalent, after falling 11 per cent last year to 84.4 million barrels. That is set to be driven by a rise in LNG output to 69 million-71 million barrels from 61.7 million in 2017, the company said. “Looking ahead to 2018, we can expect a significant increase in annual LNG production and we anticipate we will be cash flow neutral at $35 a barrel,” said CEO Peter Coleman. But for the year to 31 December, Woodside’s Pluto share produced 4.94 per cent less LNG than the same period last year. Total operating revenue was slightly lower for the year to December 31, coming in at $3.9 million, compared to $4.08m for the same period last year. Mr Coleman said at Woodside expects high oil prices to flow through to the next quarter.
(Source: AIMS)
ANZ Banking Group has admitted it breached responsible lending provisions two dozen times and will pay $5 million in remediation for selling customers dodgy loans through its previously-owned Esanda car finance business. ANZ may also be on the hook for a separate penalty, which will be decided by the Federal Court, which has a first case hearing in early February. The bank has struck a settlement agreement with the Australian Securities & Investments Commission after the watchdog launched a Federal Court action against the bank for loans sold through three brokers to ANZ. ANZ had admitted to 24 contraventions of responsible lending provisions, which included selling loans based on unreliable and easily falsified pay slips from the brokers.
BHP Billiton Limited (BHP):
BHP has cut its coking coal export target for fiscal 2018 and revealed its financial results in February would include exceptional items related to US president Donald Trump's tax cuts and old conveyors at the Escondida copper mine in Chile. Queensland coking coal miners have been experiencing shipping delays in recent months which date back to the disruption caused by Cyclone Debbie in April, and BHP said it had also experienced geotechnical issues at two of its Queensland coking coal mines. BHP shipped 10 million tonnes of coking coal in the final three months of 2017 taking its half year tally to 20 million tonnes; a rate below what is required to meet BHP's full year target of shipping 44 million to 46 million tonnes. The company said it now expected to ship between 41 million and 43 million tonnes in fiscal 2018, and cost guidance for the coking coal division would be increased.
Myer Holdings Ltd (MYR):
Embattled department store retailer Myer has appointed a new chief operating officer and chief financial officer and is stepping up cost cutting after posting an unprecedented fall in sales before Christmas. In a major management restructure announced on Thursday, Myer has promoted chief digital and data officer Mark Cripsey to the role of chief operating officer and hired former Spotless executive Nigel Chadwick to replace Grant Devonport as chief financial officer. Mr Devonport will step down as CFO following a transition period. The management restructure comes barely a month after chief executive Richard Umbers warned that a 5 per cent drop in sales in the first two weeks of December would have a "material" impact on earnings for the six months ending January. Mr Umbers said on Thursday the management changes were aimed at better integrating Myer's digital, online and bricks and mortar operations and capitalising on structural shifts in retailing. Shares are down 1.5 per cent.
Whitehaven Coal Ltd (WHC):
Whitehaven Coal has struck a bullish tone about the outlook for thermal coal used by power plants to generate electricity, after taking advantage of high prices to sell 10 per cent more of the commodity in the second quarter than a year ago. Whitehaven (WHC) said it sold 5.8 million metric tons of coal in the three months through December, bringing sales for the half year to 11.9 million tons. It received an average price of US$98 for each ton of thermal coal sold in the quarter, representing the highest price achieved in any quarter for at least a year. Whitehaven attributed the unexpected strength in prices to factors including Chinese consumption and demand for higher-quality coals from southeast Asia. At the same time, buying among traditional Asian markets of Japan, Korea and Taiwan remained strong. “The outlook for thermal coal in the short to medium term is favourable,” said Whitehaven, noting that poor weather in Indonesia and labour-relations issues in Australia have held back supply.
Woodside Petroleum Limited (WPL):
Woodside Petroleum is expecting a bumper year ahead for LNG production, following the release of a positive fourth-quarter production report boosted by record LNG production at its Pluto mine. Woodside (WPL) said it expects production in 2018 to rise to between 85 million and 90 million barrels of oil equivalent, after falling 11 per cent last year to 84.4 million barrels. That is set to be driven by a rise in LNG output to 69 million-71 million barrels from 61.7 million in 2017, the company said. “Looking ahead to 2018, we can expect a significant increase in annual LNG production and we anticipate we will be cash flow neutral at $35 a barrel,” said CEO Peter Coleman. But for the year to 31 December, Woodside’s Pluto share produced 4.94 per cent less LNG than the same period last year. Total operating revenue was slightly lower for the year to December 31, coming in at $3.9 million, compared to $4.08m for the same period last year. Mr Coleman said at Woodside expects high oil prices to flow through to the next quarter.
(Source: AIMS)
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