AGL Energy Limited (AGL):
Electricity retailer AGL has confirmed interim CEO Brett Redman as its permanent chief executive, after Andy Vesey stepped down from the top job suddenly in August. Mr Redman, who will officially take up the job on a permanent basis in January, was AGL’s chief financial officer for six years before he was appointed interim CEO following Mr Vesey’s departure. “Brett’s appointment follows a domestic and international search process that included strong internal and external candidates, as a result of which the board formed a unanimous view that Brett is the right person to lead AGL in the years ahead,” AGL chairman Graeme Hunt said
AMP Limited (AMP):
The corporate regulator has launched legal action in a bid to force embattled financial services group AMP to hand over documents related to the company’s fee-for-no-service scandal that the company claims are covered by legal professional privilege. The Australian Securities & Investments Commission wants the Federal Court to rule that the documents, records of interviews conducted with AMP staff by law firm Clayton Utz, either aren’t covered by privilege or that the company has waived the privilege. An AMP spokeswoman said Clayton Utz spoke to its staff members in preparation for a report to the board about the scandal delivered last year.
Australian and New Zealand Banking Group (ANZ):
ANZ increased its lending exposure to coal and gas operations in 2018, as its executives went backwards on key cultural benchmarks the bank had set for them, according to a new sustainability report released today. Released ahead of what is expected to be a fiery annual general meeting on Wednesday, ANZ’s (ANZ) report showed exposure to oil and gas had climbed $400 million to $18.4 billion between 2017 and 2018, up $700m on 2016’s $17.7bn. Exposure to coal, meanwhile, climbed $300m to $1.4bn over 2018. But that figure was still down on the $1.5bn recorded for 2016. Among a rage of sustainability measures mentioned in the report, ANZ said it was “excluding new-to-bank lending to customers whose thermal coal assets exceed 50 per cent of revenue, installed capacity or generation”.
BHP Group Limited (BHP):
Boutique law firm Phi Finney McDonald has beaten two other law firms vying for the right to run a shareholder class action against BHP over the Samarco dam disaster. Federal Court judge Mark Moshinsky this morning ruled that Phi Finney McDonald’s case should go ahead and stayed proceedings helmed by labour law powerhouse Maurice Blackburn and national firm Johnson Winter & Slattery. The cases revolve around BHP’s 20 per cent share price collapse in November 2015 after a tailings dam at the Samarco mine in Brazil operated by the company and Vale collapsed, releasing a torrent of mud that killed 19 people and devastated the environment.
Caltex Australia Limited (CTX):
Caltex Australia has estimated an up to 16 per cent fall in profit for 2018 as it counts the cost of high crude prices, lower refining margins and an unplanned outage. The company, which supplies a range of fuels and lubricants and operates a chain of gas stations across Australia, said it expects to report a replacement cost operating profit of between $533 million and $553 million for 2018. That excludes significant items and compares to a 2017 profit of $638 million. It estimated a historic cost operating profit, including significant items, of between $530 million and $550 million, down from $619 million last year.
Carsales.Com Limited (CAR):
Carsales.com has blamed tighter credit conditions and a new ban on flex commissions for an anticipated $48 million impairment against its stake in Stratton Finance. The auto classified advertiser, which owns 50.1 per cent of the finance business, also said profits from Stratton are set to halve. Carsales (CAR) said it had already flagged the potential hit in its annual report and on Tuesday confirmed its first-half results due in February will include a non-cash impairment charge against the value of its stake in Stratton. “Management identified that certain external factors had the potential to adversely impact the valuation of the Stratton Finance CGU, including ASIC legislative changes on car financing which came into effect in November 2018 and the continued tight credit market conditions,” the company said. ASIC’s ban on flex commissions in the car finance market began on November 1.
Fletcher Building Limited (FBU):
Fletcher Building has sold its Formica division to Broadview Holding for $US840 million ($1.17bn). It come after the division that sells laminates products such as panels and doors was put up for sale through adviser Macquarie Capital earlier this year. Fletcher told the market in April that Formica was to be divested after write downs on its major construction projects, which caused the Auckland-based group to breach its debt covenants and report losses. As a result, it needed to raise funds. Fletcher acquired the Formica business for $US700 million in 2007 and it was expected to sell for about $A1 billion. Broadview has annual sales of around €700 million and is listed in the Netherlands.
RIO Tinto Limited (RIO):
Rio Tinto could team up with a private equity partner to reignite its international growth ambitions next year as part of a plan to build up its copper business. A Deutsche Bank report published yesterday named Rio turning its attention to buying copper-producing companies, rather than individual assets, as one of its “left field” ideas for 2019. The bank said Rio could run the ruler over a few overseas companies to increase its copper capabilities but would need to join up with a private equity partner to fund a purchase. It said Rio could set its sights on Anglo American, First Quantum and Freeport if it wanted to take on an aggressive expansion plan.
Westpac Banking Corp (WBC):
The Australian Securities and Investments Commission and Westpac will now face a case management meeting on April 12 and then attend an eight-day hearing starting on May 6. The Federal Court last month refused to approve a $35 million civil penalty agreed by Westpac over breaches to responsible mortgage lending obligations because they couldn’t agree on the number of breaches. Justice Perram said “admirable ingenuity” was used by both Westpac and ASIC in framing their legal arguments to “gloss over” differences in what was being admitted.
(Source: AIMS)
Electricity retailer AGL has confirmed interim CEO Brett Redman as its permanent chief executive, after Andy Vesey stepped down from the top job suddenly in August. Mr Redman, who will officially take up the job on a permanent basis in January, was AGL’s chief financial officer for six years before he was appointed interim CEO following Mr Vesey’s departure. “Brett’s appointment follows a domestic and international search process that included strong internal and external candidates, as a result of which the board formed a unanimous view that Brett is the right person to lead AGL in the years ahead,” AGL chairman Graeme Hunt said
AMP Limited (AMP):
The corporate regulator has launched legal action in a bid to force embattled financial services group AMP to hand over documents related to the company’s fee-for-no-service scandal that the company claims are covered by legal professional privilege. The Australian Securities & Investments Commission wants the Federal Court to rule that the documents, records of interviews conducted with AMP staff by law firm Clayton Utz, either aren’t covered by privilege or that the company has waived the privilege. An AMP spokeswoman said Clayton Utz spoke to its staff members in preparation for a report to the board about the scandal delivered last year.
Australian and New Zealand Banking Group (ANZ):
ANZ increased its lending exposure to coal and gas operations in 2018, as its executives went backwards on key cultural benchmarks the bank had set for them, according to a new sustainability report released today. Released ahead of what is expected to be a fiery annual general meeting on Wednesday, ANZ’s (ANZ) report showed exposure to oil and gas had climbed $400 million to $18.4 billion between 2017 and 2018, up $700m on 2016’s $17.7bn. Exposure to coal, meanwhile, climbed $300m to $1.4bn over 2018. But that figure was still down on the $1.5bn recorded for 2016. Among a rage of sustainability measures mentioned in the report, ANZ said it was “excluding new-to-bank lending to customers whose thermal coal assets exceed 50 per cent of revenue, installed capacity or generation”.
BHP Group Limited (BHP):
Boutique law firm Phi Finney McDonald has beaten two other law firms vying for the right to run a shareholder class action against BHP over the Samarco dam disaster. Federal Court judge Mark Moshinsky this morning ruled that Phi Finney McDonald’s case should go ahead and stayed proceedings helmed by labour law powerhouse Maurice Blackburn and national firm Johnson Winter & Slattery. The cases revolve around BHP’s 20 per cent share price collapse in November 2015 after a tailings dam at the Samarco mine in Brazil operated by the company and Vale collapsed, releasing a torrent of mud that killed 19 people and devastated the environment.
Caltex Australia Limited (CTX):
Caltex Australia has estimated an up to 16 per cent fall in profit for 2018 as it counts the cost of high crude prices, lower refining margins and an unplanned outage. The company, which supplies a range of fuels and lubricants and operates a chain of gas stations across Australia, said it expects to report a replacement cost operating profit of between $533 million and $553 million for 2018. That excludes significant items and compares to a 2017 profit of $638 million. It estimated a historic cost operating profit, including significant items, of between $530 million and $550 million, down from $619 million last year.
Carsales.Com Limited (CAR):
Carsales.com has blamed tighter credit conditions and a new ban on flex commissions for an anticipated $48 million impairment against its stake in Stratton Finance. The auto classified advertiser, which owns 50.1 per cent of the finance business, also said profits from Stratton are set to halve. Carsales (CAR) said it had already flagged the potential hit in its annual report and on Tuesday confirmed its first-half results due in February will include a non-cash impairment charge against the value of its stake in Stratton. “Management identified that certain external factors had the potential to adversely impact the valuation of the Stratton Finance CGU, including ASIC legislative changes on car financing which came into effect in November 2018 and the continued tight credit market conditions,” the company said. ASIC’s ban on flex commissions in the car finance market began on November 1.
Fletcher Building Limited (FBU):
Fletcher Building has sold its Formica division to Broadview Holding for $US840 million ($1.17bn). It come after the division that sells laminates products such as panels and doors was put up for sale through adviser Macquarie Capital earlier this year. Fletcher told the market in April that Formica was to be divested after write downs on its major construction projects, which caused the Auckland-based group to breach its debt covenants and report losses. As a result, it needed to raise funds. Fletcher acquired the Formica business for $US700 million in 2007 and it was expected to sell for about $A1 billion. Broadview has annual sales of around €700 million and is listed in the Netherlands.
RIO Tinto Limited (RIO):
Rio Tinto could team up with a private equity partner to reignite its international growth ambitions next year as part of a plan to build up its copper business. A Deutsche Bank report published yesterday named Rio turning its attention to buying copper-producing companies, rather than individual assets, as one of its “left field” ideas for 2019. The bank said Rio could run the ruler over a few overseas companies to increase its copper capabilities but would need to join up with a private equity partner to fund a purchase. It said Rio could set its sights on Anglo American, First Quantum and Freeport if it wanted to take on an aggressive expansion plan.
Westpac Banking Corp (WBC):
The Australian Securities and Investments Commission and Westpac will now face a case management meeting on April 12 and then attend an eight-day hearing starting on May 6. The Federal Court last month refused to approve a $35 million civil penalty agreed by Westpac over breaches to responsible mortgage lending obligations because they couldn’t agree on the number of breaches. Justice Perram said “admirable ingenuity” was used by both Westpac and ASIC in framing their legal arguments to “gloss over” differences in what was being admitted.
(Source: AIMS)
Latest comments