Australia Stocks Fall 1%; Woodside Petroleum Revenue Up 20%

Chandrasekhar Atreya
21 Jan, 2011
New York City

Stocks in Sydney dropped 1% in the week dragged down by weak resource stocks. Shipments at Hay Point terminal drop 22% in December and QR National trims its profit target for the year by 21%. Woodside Petroleum revenues rise 20% on record production at its North West Shelf LNG project.

[R]6:00 PM Sydney, Australia – Stocks in Sydney dropped 1% in the week dragged down by weak resource stocks. Shipments at Hay Point terminal drop 22% in December and QR National trims its profit target for the year by 21%. Woodside Petroleum revenues rise 20% on record production at its North West Shelf LNG project.[/R]

Stocks in Sydney were lower on China worries, after commodities fell overnight in the world market but financials gained.

The ASX 200 Index slipped 0.59% or 28 to close at 4,755.70 and closed 0.95% lower for the week.

The Australian dollar lost nearly one cent to close at 98.67 U.S. cents in Sydney today.

Rio Tinto Alcan, the largest aluminum smelter facility of Rio Tinto in Queensland, said it lifted the force majeure clause for Boyne Smelter’s operations near Gladstone, after flood waters receded.

The company said that now with the Port of Brisbane open and road and rail access available, transport of product from the facility to local and international customers has resumed.

The flood crisis in Queensland has slashed BHP Billiton’s production crimping $560 million worth of coal output at current contract prices. But sky rocketing coal prices are expected to help the miner’s bottom line with prices of the item expected to soar as much as 66% due to shortage of supplies.

QR National has also reported that it will miss its profit targets for this financial year by up to 21% after the floods in Queensland slashed coal volumes.

Repairs to damaged tracks, reduced revenues from access fees and lower production volumes from coal miners could cost the company as much as A$70 million in lost profits, the Australian reported.

Woodside Petroleum reported a 20% rise in annual revenue as its Northwest Shelf LNG project ran close to full capacity.

Revenue for the full year ended December rose to $4.19 billion from $3.49 billion in 2009 as oil prices continued from the decline in late 2008. LNG revenue from its Northwest Shelf surged 70% to $1.31 billion.

Perth-based Fortescue Metals Group plans to raise $2.5 billion as early as this year to fund its expansion plans for iron ore mines. The company needs about $4 billion of funds to triple output from its Western Australian mines to meet rising demand from China.

“The finance markets are looking at the iron ore industry, Fortescue, Australia and the growth that China continues to offer, very favorably,” said CFO of the company Stephen Pearce, in an interview.

Air New Zealand Ltd confirmed it bought 14.9% stake in Australia’s second largest airline, Virgin Blue Holdings Ltd, to expand and cement an alliance with the carrier.

The airline paid 44 cents a share, equivalent of Virgin Blue’s closing price on Thursday, or A$145 million, for the stake, it said in a statement today.

Shipments from Hay Point port, Australia’s largest export point for steelmaking coal, dropped 22% in December from a month earlier after floods disrupted production and supplies to the port.

Coal exports from harbor’s Dalrymple and Hay Port terminals reached 6.46 million tons, compared with 8.29 million in November, according to figures on the web site of North Queensland Bulk Ports Corp controlling the port.

Stock Movers

BHP Billiton closed down 1.06% at A$44.71 and Rio Tinto fell 1.39% to A$84.38 after price of copper fell 2.3% and zinc fell 1.8% in London trade.

ANZ Bank led the financial sector gaining 27 cents to A$23.33 while rivals Westpac Banking Corp and National Australia Bank gained 0.7% each. Commonwealth Bank of Australia finished flat at A$51.66.