Earnings reports were in the spotlight this week with BlueScope making headlines after it booked a net loss of $1.04 billion for the full 2012 financial year. The steel maker has voiced concerns over China’s flagging demand as iron ore prices continue to fall.
Resources news China has grown its steel stockpiles by 26 per cent from the year before according to the China Iron and Steel Association. Questions have been raised about its record production figures amid flagging domestic demand. The outlook for Australian iron ore miners remains subdued according to BlueScope Steel’s Chief Executive Paul O’Malley who warns China’s steel consumption has peaked. Iron ore prices fell to about $US113 a tonne last week after trading at $US140 per tonne in early July.
Hastings Diversified Utilities Fund
(ASX:HDF) has accepted APA Group's
(ASX:APA) takeover offer and has unanimously recommended its shareholders vote in favour of the bid which has trumped Pipeline Partners Australia’s takeover offer, due to expire at the end of August. Media reports suggest Pipeline Partners does not intend to match APA’s latest bid. APA's renewed offer includes $0.80 in cash and 0.390 APA shares for each Hastings share, based on acquiring 90 per cent or more of the company.
Woodside Petroleum Limited
(ASX:WPL) will see Chevron exit its liquefied natural gas (LNG) venture at James Price Point on the Kimberley Coast. Chevron will swap its 17.5 per cent Browse LNG stake for Royal Dutch Shell’s share in two licences it holds in the Carnarvon Basin. As operator of the proposed LNG development Woodside is currently progressing plans to build and operate a 12 million tonne per annum LNG processing facility at the site.
Santos Limited
(ASX:STO) has achieved the first commercial flow of shale gas in Australia at its Gladstone liquefied natural gas project following drilling at the Moomba-191 well in the Cooper Basin of central Australia. The oil and gas producer could move into production by October this year, two years ahead of schedule. Santos was forced to extend its budget for the project earlier this year in order to ensure adequate gas supplies for the project.The GLNG project is one of three being developed in Queensland and is focused in the Bowen and Surat Basins. The project is focused on converting coal seam gas to liquefied natural gas for export to global markets.
Full year figuresBlueScope Steel Limited
(ASX:BSL) has posted a net loss of $1.04 billion for the 2012 financial year, hit by impairment charges, restructuring costs and a strong Australian dollar. The steel maker’s result was only a marginal improvement from last year’s $1.05 billion net loss.
Arrium Limited
(ASX:ARI) formerly known as Onesteel, has seen a 75 per cent drop in its full year results, booking a net profit of $58 million down from $230 million. The results are in line with its guidance and the mining and steel company says the slump in profit was due to the write down of property, plant and equipment assets of $125 million.
Macmahon Holdings Limited
(ASX:MAH) has rebounded to a record full year profit of $56 million, from a loss of $2.7 million the year before. The contract mining and construction company’s result was boosted by record levels of revenue and project wins in fiscal 2012.
