A BHP back down in a row with the West Australian government will cost the company $250 million and curtail its ability to make deductions from royalty payments into the future. The cave in by BHP and joint venture partners Mutsui and Itochu concerns sales commissions paid between BHP and its iron ore marketing arm based in Singapore, and represents an admission BHP has been short-changing WA. The company had been deducting the cost of the commissions from royalty payments for more than a decade.
Oil Search Ltd (OSH):
Oil Search has exercised an option to sharply increase its stakes in prospective oil fields in Alaska, where the energy company and partner Repsol SA plan to build an operation producing about 120,000 barrels a day. Oil Search said the $US450 million ($642m) option will see it buy closely held Armstrong Energy LLC’s and GMT Exploration’s remaining 25.5pc and 37.5pc interests in the Pikka Unit and Horseshoe area, as well as further stakes in other exploration leases. That will double its interests across the assets in Alaska’s North Slope, which is estimated to be one of the largest conventional oil discoveries in the US in decades. Oil Search plans to sell part of its Alaskan portfolio ahead of making a final investment decision on the first phase of development on the North Slope’s Pikka Nanushuk development, which is scheduled for mid-2020.
Tabcorp Holdings Ltd (TAH):
Tabcorp has hired AusNet chief financial officer Adam Newman to fill the same role with the gaming giant. Mr Newman, who will replace longstanding CFO Damien Johnston in October, has been CFO of ASX-listed energy company AusNet since 2013 and was previously with steelmaker BlueScope in Australia and the US. “Adam brings deep experience in finance and operational leadership roles in complex environments,” Tabcorp managing director and chief executive David Attenborough said.
Domino’s Pizza Enterprise Ltd (BMP):
Domino’s has told shareholders it still has not formally been served documents in a class action of allegedly underpaid workers, but rejects allegations made in initial documents. The pizza franchise confirmed “it did not mislead its franchisee employers as to their employee payment obligations” and that the entitlements were lawful, valid and applicable at the time. “The documents do not quantify any loss by the lead applicant or the alleged group,” it said. “Domino’s rejects the allegations made in the documents and intends to defend the action.”
Commonwealth Bank Of Australia (CBA):
Commonwealth Bank has split the responsibilities of its general counsel and corporate affairs role and hired Priscilla Sims Brown to the new position of marketing and corporate affairs executive. Chief executive Matt Comyn says the retirement of incumbent Anna Lenahan had given the bank the opportunity to review the role. “With our focus on earning trust and restoring the reputation of the Commonwealth Bank, we have decided to separate the role,” Mr Comyn said on Friday. “In addition to a group General Counsel and Governance, we are creating the new role of Group Executive Marketing and Corporate Affairs to allow for greater focus on how we engage with our customers, stakeholders and the broader community.”
Cardno Ltd (CDD):
Infrastructure group Cardno has warned of disappointing results in its Asia Pacific arm, but maintained its earnings guidance thanks to a boost from the Americas. The company expects full year underlying earnings of $60 million, in line with prior guidance. But weakness in its Asia Pacific division will put pressure on the group, prompting a $48 million write down of its domestic intangible assets. Despite this, it said results were encouraging from the Americas, Construction Sciences and International Development divisions, as well as two subsidiaries acquired in the first half of the year.
Qube Holdings Ltd (QUB):
Logistics group Qube has lobbed a $60 million takeover offer for warehousing and storage group Chalmers, backed by the target’s major shareholder. Qube is offering either 2.31 shares or $6.50 cash per security for investors, in the hope of progressing its growth plans and providing opportunities for significant cost savings. The cash offer represents a 49 per cent premium to Chalmers’ closing price of $4.70 on Thursday. “Qube believes that the Chalmers assets and business are complementary to Qube’s existing business and provide an opportunity to further develop Qube’s business in both Victoria and Queensland,” it said in a statement to the market today. The offer is set to remain on the table for a month, with the full terms and conditions to be set out in a bidder’s statement next week.
AGL Energy Ltd(AGL):
AGL has pushed back its forecast for the first gas delivery from its proposed Crib Point Jetty, after making a switch on a key piece of equipment. It said it expects the first gas import from the Victorian jetty in the second half of FY22, as opposed to previous indications as early as FY21. The delay comes after it selected a different floating storage and regasification unit for the project, which comes with a later delivery window, to better fit its environmental effects statement. “AGL expects the outcome of the EES to occur no earlier than late FY20, subject to and following which AGL expects to reach a final investmetn decision on the Crib Point project,” it said to the market today.
Ridley Corporation Ltd (RIC):
Animal feed producer Ridley Corporation has announced the departure of its managing director and chief executive Tim Hart, while separately advising full- year profit will fall short of analysts’ forecasts. The company said on Friday its board had decided it was “the right time for a leadership change”, with Mr Hart having been in the role for more than six years. Mr Hart will be replaced by non-executive Ridley director David Lord - who also chairs the company’s remuneration and nominations committees - on an interim basis until a permanent successor is found. In a separate release to the ASX, the company said it is anticipating full-year net profit of between $22 million and $24 million, missing analyst consensus forecast of $25 million. Shares in the company fell 4.5 per cent to $1.17 in morning trade. Ridley’s stock hit a four-year low of $1.13 this month and the company has lost more than 15 per cent of its value since January 2018.
（Source: AIMS）
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