Reporting season heated up over the week with profit results rolling-in from the major mining, mining services and energy companies.
Miners
Fortescue Metals Group Limited
(ASX:FMG) has more than tripled its interim profit to $1.9 billion and hiked its dividend to 10 cents per share. Australia’s third-largest iron ore producer described the result as a record, underlying its strategy to rapidly construct new capacity, ramp up production and drive down costs. CEO Nev Power says the company has accelerated debt repayment, de-risked the balance sheet and increased shareholder returns.
Atlas Iron Limited
(ASX:AGO) has rebounded to a half year profit of $74 million from a loss of $256 million the year before on the back of record production, cost control and robust prices. The iron ore miner’s result was aided with its revenue surging more than 100 per cent to a record $588 million in the last six months of 2013. Altas says it now has the flexibility to consider various capital management initiatives.
Iluka Resources Limited
(ASX:ILU) annual profit result has been hit by lower demand for its main products. The minerals sands producer’s net profit sank 95 per cent to $18.5 million over the 2013 calendar year on the back of a 26 per cent fall in revenue. Iluka says its results were impacted by lower than usual demand for its zircon products and high grade titanium dioxide feedstocks.
Mount Gibson Iron Limited
(ASX:MGX) interim results missed market expectations, although the West Australian miner’s net profit more than doubled to $78.3 million in the last six month of 2013. In the same period the company also reported record sales revenue of more than $500 million on record iron ore sales. Market commentators have speculated the result missed expectations for revenue growth and may indicate peak production.
BlueScope Steel Limited
(ASX:BSL) has rebounded to a first half profit and affirmed its confidence in achieving future earnings growth. The steelmaker’s interim result flipped to a net profit of $3.7 million in the last six months of 2013 from a loss of $23.8 million the year before. Managing Director Paul O’Malley says the business is stabilised and foundations and measured investments have been made, while maintaining a conservative balance sheet.
Mining services
Monadelphous Group Limited
(ASX:MND) has delivered a record first half profit and highlighted its ability to secure future contracts. The engineering group improved its interim profit by 10 per cent to $87.1 million in the last six months of 2013. Managing Director Rob Velletri has described the results as solid and advised the company is in a strong position to secure new contracts in both upstream and downstream LNG developments.
Calibre Group Limited
(ASX:CGH) has spruiked a solid financial performance. While the mining service provider’s net profit fell 13 per cent to $16 million in the last six months of 2013, revenue rose almost 3 per cent to $378 million. Calibre has described the financial performance as solid and sound amid challenging market conditions and says it is well placed to benefit from any market upturn.
Boart Longyear Limited
(ASX:BLY) has back-flipped to a full year net loss and failed to provide financial guidance for the year ahead. The supplier of drilling services and equipment booked a net loss of $US620 million in the full 2013 calendar year, from a profit of $US68 million in 2012. CEO Richard O'Brien says Boart Longyear cannot predict when its markets will recover but the company has taken decisive and aggressive action to tackle the challenges it faces.
Energy
Woodside Petroleum Limited
(ASX:WPL) has reported a 41.4 per cent fall in its full year profit but lifted its payout to shareholders. The oil and has giant says its annual net profit of $US1.75 billion is in line with consensus forecasts and the second highest result in the company’s history.
Origin Energy Limited
(ASX:ORG) has reported a 39 per cent drop in its first half net profit in the same period its underlying profit rose 5 per cent. The energy giant says its $322 million net profit was impacted by higher LNG-related funding expenses and higher impairments.
Santos Limited
(ASX:STO) has posted a weaker than expected net profit of $516 million over the 2013 calendar year, dipping 1 per cent from the year before. While the oil and gas producer’s underlying profit also missing market expectations Santos has forecast its production will rise over the current calendar year.
Senex Energy Limited
(ASX:SXY) has revealed record first half profitability and announced a gas farm-out deal with Origin Energy Limited
(ASX:ORG). Senex increased its net profit by 9 per cent to $25.6 million in the first half of the year in the same period its underlying profit jumped 37 per cent to $31.8 million.
Beach Energy Limited
(ASX:BPT) has delivered a better than expected first half profit. The oil and gas producer also impressed investors after increasing its annual production guidance and declaring a special dividend. In the last six months of 2013 the energy company’s net profit soared 267 per cent to $160.5 million on the back of higher oil output and higher prices for its products.
