Sydney Gains; Santos in $15 B LNG Project

Chandrasekhar Atreya
26 Aug, 2010
New York City

Stocks in Australia rallied after Woolworth net increased 10.1% to A$2 billion and said it will buyback A$700 million shares. Santos Ltd is planning $15 billion LNG project in Queensland. Wealth manager 100F Holdings full-year net surged four-fold.

[R]6:00 PM Sydney, Australia – Stocks in Australia rallied after Woolworth net increased 10.1% to A$2 billion and said it will buyback A$700 million shares. Santos Ltd is planning $15 billion LNG project in Queensland. Wealth manager 100F Holdings full-year net surged four-fold.[/R]

Australian shares traded higher on Woolworth’s record of double digit net profit growth for the twelfth year along with share buy-back program. Trading started on a positive note and index steadily gained in the session.

The ASX 200 Index gained 0.83% or 35.90 to close at 4,356.00.

New private capital expenditure fell 4% in real terms, seasonally adjusted, in the quarter to June, the Australian Bureau of Statistics said Thursday. Global uncertainty and concerns over a mining tax led businesses to postpone their investments in this quarter.

Fortescue Metals Group posted a 14% increase in annual earnings, boosted by a 44% jump in iron ore shipments and higher iron ore prices.

The largest retailer of the nation, Woolworths maintained its 11-year record of double-digit net profit growth, reporting a 10.1% increase in net income to A$2 billion. The retailer also plans to buy-back shares of A$700 million, more than double the amount purchased earlier this year.

Corporate frauds are often committed by company bosses, and the average case involves more than A$2 million, a study has found. The bi-annual KPMG Fraud Barometer, monitoring major frauds prosecuted in the country’s courts over a six-month period, found that most of these frauds were committed by employees, particularly managers and directors.

Rising equity markets, better fund inflows and merger benefits saw 100F Holdings quadruple its annual, net profit and also announce that its fiscal first half profit is estimated to increase.

The wealth manager reported a net profit after tax increased 432% to A$68.4 million from A$15.8 million, and revenues surged 127% to A$655.69 million.

The environment department of Queensland rejected Cougar Energy’s report on water contamination from a coal gas project, saying it failed to prove the operations were safe.

The Department of Environment and Resource Management said the company’s report on the underground coal gasification plant near Kingaroy, northwest of Brisbane was inadequate, and that the operations of the company will remain suspended until the government is satisfied the company can meet all regulatory requirements.

Adelaide-based Santos Ltd, the Australian energy company planning a $15 billion LNG project in Queensland, said it aims to sell at least 15% of the venture before committing to the first phase of the project later this year.

“LNG buyers are seeking good stakes in the Gladstone LNG project and they are looking for real participation,” Santos CEO David Knox said while talking to reporters after reporting a 94% gain in first half profits. He also said that Santos will hold at least 45% stake in the project to be the largest shareholder in the venture.

Asahi Breweries Ltd, Japan’s second-largest beer maker, said it will pay A$364 million in cash for Australian soft drink maker P&N Beverages as it builds on the acquisition made last year of Cadbury Plc’s Australian drinks unit.

The acquisition will be completed by November, Tokyo-based Asahi said in a statement today.

Resource News

Bendigo Mining said it discovered the Newton Zone at Henty goldmine, less than a fortnight after the Read Zone discovery.

Hillgrove Resources confirmed its shallow-dipping gold mineralization on the Pahandanjal East Vein at the Sumba project in Indonesia.

Alara Resources said it secured rights to acquire a 70% interest in the El Quillay copper/gold project in Chile.

Bassari Resources said it is in transition to production at the Douta alluvial project in Senegal after the Senegalese President signed the mining exploitation permit.

Thundelarra received laboratory assay results for the first eight reverse circulation holes drilled at the Red Bore project on mining lease M52/597.

AGL Energy flagged an increase in investments in upstream gas as it seeks to further boost reserves and flag its likely asset sales after the acquisition of Mosaic Oil.

Gainers & Losers

Virgin Blue Holdings Ltd led the gainers in the ASX 200 with a rally of 12.5% to A$0.315 followed by Cabcharge Australia Ltd 8.24% to A$4.6 and Eldorado Gold Corp 5.82% to A$21.45.

Cudeco Ltd led the decliners in the index with a fall of 16.32% to A$2.00 followed by Spark Infrastructure Group 7.2% to A$1.16 and Ten Network Holdings Ltd 5.14% to A$1.475.