Briefs

COAL

By InvestSMART · 10 Aug 2011

By InvestSMART ·
10 Aug 2011

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COAL

Gloucester upbeat

Gloucester Coal has flagged a net profit as high as $59 million for the year to June, as much as 18 per cent above its earlier forecast. Originally Gloucester estimated earnings of $41 million to $50 million for the year, but yesterday it said earnings may exceed this by 14 to 18 per cent owing to a "reassessment of the value" of coal royalties.

LNG

Sinopec deal agreed

Origin Energy and ConocoPhillips have finalised an agreement so China's Sinopec can take a 15 per cent interest in the Australia Pacific LNG project in Queensland. The investment will reduce the funding requirement of the two companies by $US750 million ($738 million) each.

AVIATION

Tasman flights cut

Virgin Australia and Air New Zealand have been granted permission to fly fewer seats across the Tasman in response to the Chilean volcanic ash cloud. The competition regulator has approved the airlines' request to adjust flying schedules for the 2011 northern summer timetable.

ROADS

M5 contract won

The NSW roads authority, the RTA, has awarded a $70 million contract to maintain and operate the M5 East freeway in Sydney to Leighton Contractors. The M5 East links south-western Sydney to Port Botany, Sydney Airport, and the CBD.

IMPORTS

Port traffic at a high

Demand for cheaper imported goods has lifted the movement of trade containers through Sydney's main port to an annual record high. Traffic at Port Botany hit 2.02 million 20-foot equivalent units in 2010-11, surpassing the 2 million mark for the first time.

HARVEST

WA wheat surplus

Western Australia might have 6.5 million metric tons of wheat available for export from the 2011-12 harvest, Tom Puddy, head of grain marketing at CBH Group, said. The state might have an "average" wheat crop of between 7.5 million and 8 million tonnes in 2011-12.

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Frequently Asked Questions about this Article…

What profit outlook did Gloucester Coal give for the year to June and why does it matter to investors?

Gloucester Coal flagged a net profit as high as $59 million for the year to June, which is up to about 18% above its earlier forecast. For investors, this signals stronger-than-expected earnings and potential upside versus the company's prior $41–$50 million estimate.

Why did Gloucester Coal say its earnings may exceed earlier forecasts?

Gloucester Coal said earnings may exceed its earlier range because of a reassessment of the value of its coal royalties. That reassessment could lift reported earnings by roughly 14–18% versus the prior guidance.

What is the deal between Sinopec, Origin Energy and ConocoPhillips on the Australia Pacific LNG project?

Origin Energy and ConocoPhillips finalised an agreement for China’s Sinopec to take a 15% interest in the Australia Pacific LNG project in Queensland. The deal brings a new equity partner into the LNG development.

How does Sinopec’s investment affect Origin Energy’s and ConocoPhillips’ funding requirements?

Sinopec’s 15% investment reduces the funding requirement of both Origin Energy and ConocoPhillips by US$750 million each (about $738 million), lowering the amount those partners need to contribute to the project.

Why were Tasman flights between Australia and New Zealand reduced and which airlines were affected?

Virgin Australia and Air New Zealand were granted permission to fly fewer seats across the Tasman in response to the Chilean volcanic ash cloud. The competition regulator approved adjustments to their schedules for the 2011 northern summer timetable.

Who won the M5 East freeway contract in Sydney and what will the contract involve?

The NSW roads authority (RTA) awarded a $470 million contract to Leighton Contractors to maintain and operate the M5 East freeway, which links south-western Sydney to Port Botany, Sydney Airport and the CBD.

What import and port traffic trends were reported for Port Botany?

Port Botany hit a record 2.02 million 20-foot equivalent units (TEU) in 2010–11, surpassing the 2 million TEU mark for the first time. The rise reflects stronger demand for cheaper imported goods lifting container movements through Sydney’s main port.

How much wheat might Western Australia have for export in 2011–12 and what are crop expectations?

Western Australia might have about 6.5 million metric tonnes of wheat available for export from the 2011–12 harvest. CBH Group’s head of grain marketing, Tom Puddy, said the state could see an 'average' wheat crop of roughly 7.5–8 million tonnes in 2011–12.