AGL Energy Ltd (AGL):
Victoria’s services watchdog has threatened to pull AGL’s licence to sell electricity in Victoria unless the energy giant can provide -accurate performance data by the end of next month. The Essential Services Commission has issued four demands to AGL after the energy generator and retailer this year told the commission and the Australian -Energy Regulator it had found -errors in its performance data for 2016 and 2017. In a letter addressed to AGL’s interim chief executive, Brett Redman, the ESC demanded a meeting with Mr Redman to hear AGL’s progress on upgrading its reporting systems, and set a deadline of October 31 for the revised data. If AGL could not meet the -demands by October 31, the ESC would conduct a separate audit of whether AGL had the capacity to continue holding its licence to supply energy to Victoria, it said.
AngloGold Ashanti Limited (AGG):
South African unions are lauding a new three-year wage deal with AngloGold Ashanti that will see no worker earning less than 14,000 Rand (about $1,306) per month within three years. Workers are getting a 1000 Rand per month increase (about $93.3) which in the first year is 70 per cent straight increase and 30 per cent bonus for working new shift arrangements. Entry-level workers will take home about 11,000 Rand per month ($1,025) to start with, increasing to 14,000 Rand. The deal covers most of AngloGold Ashanti's employees in South Africa, who are represented by the Association of Mining and Construction Union, Solidarity, and the UASA, the Union. A further 33 per cent of workers are covered by the National Union of Mineworkers and talks are ongoing. Only 5 per cent of staff are non-unionised.
BHP Billiton Limited (BHP):
BHP boss Andrew Mackenzie raked in a pay packet worth $US4.66 million ($6.52m) for 2018 fiscal year, slightly up on the $US4.55m he received last year, after he banked a slightly higher bonus. The company said Mr Mackenzie would not receive an increase to his $US1.7m base salary for 2019, which has remained unchanged since he was appointed to the top job in 2013. His short term incentives will also remain unchanged, as they have since 2013. For 2018, Mr Mackenzie received $US2.45m in short term incentives – 60 per cent against the maximum opportunity – based on the company’s financial performance, as well as various individual and health, safety, environment and community targets.
Kathmandu Holdings Ltd (KMD):
The turnaround of the once-struggling outdoor and adventure wearretailer Kathmandu, which three years ago nearly fell to a $324 million takeover, has continued to reward investors, with the company posting record sales and profit for 2018 as well as showering them with a record dividend. Kathmandu (KMD) said its full-year profit rose by almost one third to $NZ50.5 million ($A46.3 million) as sales in Australia - its biggest market - reported strong revenue gains. However, its New Zealand stores are falling behind their Australian counterparts, posting falls in same store sales at a time when Australian sales are booming, with the New Zealand market hit by poor weather conditions and regional economic issues.
New Hope Corporation Limited Ltd (NHC):
New Hope managing director Shane Stephan says his company could boost coal output by more than 50 per cent in coming years through new Queensland production and the up to $860 million agreed purchase of Wesfarmers’ stake in the Bengalla coalmine in NSW, while tipping surging coal prices that are trading near 10-year highs will remain strong this financial year. Brisbane-based New Hope, which is controlled by the wealthy Millner family, logged a 6.3 per cent rise in net profit to $149.5 million in the 12 months through July, from $140.6 million the year before. Underlying net profit jumped 96 per cent to $253m, delivering the company a record operating result on the back of higher prices. Australian thermal coal export earnings and volumes are running at record rates on the back of strong Chinese power station demand that has, boosted returns for miners and investors.
Nextdc Ltd (NXT):
The founder of ASX-listed data centre group NEXTDC, Craig Scroggie, is proud to be accused of "virtue signalling" for striving to run a commercially and environmentally successful business. His company, valued at more than $2 billion after just seven years in business, is installing as many solar panels on the rooves of its data centres as will fit and has a share in a joint off take agreement with an 80 megawatt wind farm being developed near Ararat. With eight data centres in Brisbane, Sydney, Melbourne, Canberra and Perth and three more on the way in a $2.25 billion investment drive, NEXTDC already requires 40 MW of power 24/7 and expects this to grow to a hefty 300 MW over the coming years as demand for data continues to surge.
TPG Telecom Ltd (TPM):
TPG Telecom has posted a weaker full year net profit and earnings as ongoing margin pressure in the National Broadband Network (NBN) market weighs on the telco’s numbers. The telco posted a net profit after tax attributable to shareholders of $396.9 million for the year ended July 31, 2018, down 4.6 per cent. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the period came in at $841m, down 5.6 per cent. However, TPG said the $49.7m decrease in reported EBITDA between the 2017 financial year and the 2018 financial year did not provide an accurate picture of the business. TPG flagged further profit headwinds from the NBN in the current financial year, when it expects to complete its merger with Vodafone Australia.
Wesfarmers Ltd (WES):
Wesfarmers’ stock price is overvalued, based on selling off unwanted assets to leverage the value in Bunnings, according to a report from BAML analyst David Errington. Mr Errington, a long-time Woolworths bull, argued the market has rewarded Wesfarmers for its asset sales and for increasing the exposure to Bunnings, but was not creating long-term value. Wesfarmers’ stock price has increased 14 per cent this year against the market’s two per cent gain. Mr Errington has a $43 price target on the stock against yesterday’s close at $50.94. His Woolworths price target is 37 per cent above yesterday’s price of $27.45.
(Source: AIMS)
Victoria’s services watchdog has threatened to pull AGL’s licence to sell electricity in Victoria unless the energy giant can provide -accurate performance data by the end of next month. The Essential Services Commission has issued four demands to AGL after the energy generator and retailer this year told the commission and the Australian -Energy Regulator it had found -errors in its performance data for 2016 and 2017. In a letter addressed to AGL’s interim chief executive, Brett Redman, the ESC demanded a meeting with Mr Redman to hear AGL’s progress on upgrading its reporting systems, and set a deadline of October 31 for the revised data. If AGL could not meet the -demands by October 31, the ESC would conduct a separate audit of whether AGL had the capacity to continue holding its licence to supply energy to Victoria, it said.
AngloGold Ashanti Limited (AGG):
South African unions are lauding a new three-year wage deal with AngloGold Ashanti that will see no worker earning less than 14,000 Rand (about $1,306) per month within three years. Workers are getting a 1000 Rand per month increase (about $93.3) which in the first year is 70 per cent straight increase and 30 per cent bonus for working new shift arrangements. Entry-level workers will take home about 11,000 Rand per month ($1,025) to start with, increasing to 14,000 Rand. The deal covers most of AngloGold Ashanti's employees in South Africa, who are represented by the Association of Mining and Construction Union, Solidarity, and the UASA, the Union. A further 33 per cent of workers are covered by the National Union of Mineworkers and talks are ongoing. Only 5 per cent of staff are non-unionised.
BHP Billiton Limited (BHP):
BHP boss Andrew Mackenzie raked in a pay packet worth $US4.66 million ($6.52m) for 2018 fiscal year, slightly up on the $US4.55m he received last year, after he banked a slightly higher bonus. The company said Mr Mackenzie would not receive an increase to his $US1.7m base salary for 2019, which has remained unchanged since he was appointed to the top job in 2013. His short term incentives will also remain unchanged, as they have since 2013. For 2018, Mr Mackenzie received $US2.45m in short term incentives – 60 per cent against the maximum opportunity – based on the company’s financial performance, as well as various individual and health, safety, environment and community targets.
Kathmandu Holdings Ltd (KMD):
The turnaround of the once-struggling outdoor and adventure wearretailer Kathmandu, which three years ago nearly fell to a $324 million takeover, has continued to reward investors, with the company posting record sales and profit for 2018 as well as showering them with a record dividend. Kathmandu (KMD) said its full-year profit rose by almost one third to $NZ50.5 million ($A46.3 million) as sales in Australia - its biggest market - reported strong revenue gains. However, its New Zealand stores are falling behind their Australian counterparts, posting falls in same store sales at a time when Australian sales are booming, with the New Zealand market hit by poor weather conditions and regional economic issues.
New Hope Corporation Limited Ltd (NHC):
New Hope managing director Shane Stephan says his company could boost coal output by more than 50 per cent in coming years through new Queensland production and the up to $860 million agreed purchase of Wesfarmers’ stake in the Bengalla coalmine in NSW, while tipping surging coal prices that are trading near 10-year highs will remain strong this financial year. Brisbane-based New Hope, which is controlled by the wealthy Millner family, logged a 6.3 per cent rise in net profit to $149.5 million in the 12 months through July, from $140.6 million the year before. Underlying net profit jumped 96 per cent to $253m, delivering the company a record operating result on the back of higher prices. Australian thermal coal export earnings and volumes are running at record rates on the back of strong Chinese power station demand that has, boosted returns for miners and investors.
Nextdc Ltd (NXT):
The founder of ASX-listed data centre group NEXTDC, Craig Scroggie, is proud to be accused of "virtue signalling" for striving to run a commercially and environmentally successful business. His company, valued at more than $2 billion after just seven years in business, is installing as many solar panels on the rooves of its data centres as will fit and has a share in a joint off take agreement with an 80 megawatt wind farm being developed near Ararat. With eight data centres in Brisbane, Sydney, Melbourne, Canberra and Perth and three more on the way in a $2.25 billion investment drive, NEXTDC already requires 40 MW of power 24/7 and expects this to grow to a hefty 300 MW over the coming years as demand for data continues to surge.
TPG Telecom Ltd (TPM):
TPG Telecom has posted a weaker full year net profit and earnings as ongoing margin pressure in the National Broadband Network (NBN) market weighs on the telco’s numbers. The telco posted a net profit after tax attributable to shareholders of $396.9 million for the year ended July 31, 2018, down 4.6 per cent. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the period came in at $841m, down 5.6 per cent. However, TPG said the $49.7m decrease in reported EBITDA between the 2017 financial year and the 2018 financial year did not provide an accurate picture of the business. TPG flagged further profit headwinds from the NBN in the current financial year, when it expects to complete its merger with Vodafone Australia.
Wesfarmers Ltd (WES):
Wesfarmers’ stock price is overvalued, based on selling off unwanted assets to leverage the value in Bunnings, according to a report from BAML analyst David Errington. Mr Errington, a long-time Woolworths bull, argued the market has rewarded Wesfarmers for its asset sales and for increasing the exposure to Bunnings, but was not creating long-term value. Wesfarmers’ stock price has increased 14 per cent this year against the market’s two per cent gain. Mr Errington has a $43 price target on the stock against yesterday’s close at $50.94. His Woolworths price target is 37 per cent above yesterday’s price of $27.45.
(Source: AIMS)
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