Hancock doubles pay to key staff
Full documents for the company's 2012 performance became public on Tuesday, four days after selected details were released to some media outlets.
Hancock reported a bottom-line profit of $3.26 billion during 2012, but that figure was inflated by $1.16 billion on the back of a deferred tax asset related to the new mining tax, as well unrealised gains from the sale of coal assets in Queensland.
Excluding those accounting measures, underlying profits were just over $1 billion, and about $139 million lower than 2011.
Revenue from existing operations was down about $59 million, while dividends to Mrs Rinehart and her family trusts fell from $12.49 million in 2011 to $10.3 million in 2012.
But Mrs Rinehart will be comforted by the fact the company's gross assets have more than doubled from $3.7 billion in 2011 to $7.6 billion in 2012.
One of the more curious features of the 2012 report was that "key management personnel compensation" more than doubled from $10.34 million in 2011 to $22.22 million in 2012.
Hancock representatives declined to comment when asked by BusinessDay as to whether that increase reflected a greater number of "key management personnel" employed, or rather that existing staff were paid more.
A sharp increase in management appears unlikely, given the company decreased its total number of senior employees from 126 in 2011 to just 70 in 2012.
Hancock's prime source of income is its stake in the Hope Downs iron ore joint venture with Rio Tinto in Western Australia.
It owns 70 per cent of Roy Hill Holdings, through which it plans to build a separate $10 billion iron ore export project.
Hancock also has substantial exposure to the media sector, ranking as the biggest shareholder in Fairfax Media, owner of this newspaper.
Hancock has now released two sets of financial results in the space of six months, after publishing its 2011 results on Christmas Eve.
Frequently Asked Questions about this Article…
Hancock Prospecting reported a bottom-line profit of $3.26 billion for the year to June 30, 2012. However, that figure was boosted by accounting items (see below); underlying profits were just over $1 billion for the year.
The reported $3.26 billion profit was aided by a $1.16 billion deferred tax asset linked to the new mining tax and by unrealised gains from the sale of coal assets in Queensland. Excluding those accounting measures, underlying profit fell to just over $1 billion.
Hancock's reported 'key management personnel compensation' more than doubled from $10.34 million in 2011 to $22.22 million in 2012. The company declined to say whether that rise was due to paying existing staff more or hiring more key managers.
Yes. The company reduced its total number of senior employees from 126 in 2011 to 70 in 2012 (a reduction of close to 44%), even as key management compensation more than doubled, which suggests the increase was likely due to higher pay for remaining managers rather than a large rise in headcount.
Hancock's prime income source is its stake in the Hope Downs iron ore joint venture with Rio Tinto in Western Australia. It also owns 70% of Roy Hill Holdings, which plans a separate $10 billion iron ore export project, and has substantial exposure to the media sector as the biggest shareholder in Fairfax Media.
Dividends to Mrs Rinehart and her family trusts fell from $12.49 million in 2011 to $10.3 million in 2012, according to the company's financial statements.
Yes. Hancock reported that gross assets more than doubled, rising from $3.7 billion in 2011 to $7.6 billion in 2012, reflecting major changes on the balance sheet during the year.
Full 2012 financial documents became public on a Tuesday, four days after selected details were released to some media outlets. The company had also published two sets of financial results within six months, after releasing its 2011 results on Christmas Eve.
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