Sinopec Takes 15% Stake in Origin LNG Venture, Woolworths Net Up 6%

Marcus Jacob
25 Feb, 2011
New York City

Australian stocks rebounded after crude oil declined on the pledges from Saudi Arabia to meet any shortfall from Libya. Woolworths first-half net rose 6%. Iluka soared after it reported better than expected profit. Harvey Norman net dropped 17%. Sinopec acquires 15% stake in Origin LNG venture.

[R]4:30 PM Sydney – Australian stocks rebounded after crude oil declined on the pledges from Saudi Arabia to meet any shortfall from Libya. Woolworths first-half net rose 6%. Iluka soared after it reported better than expected profit. Harvey Norman net dropped 17%.[/R]

Australian stocks edged higher after crude oil futures declined. The pledge from Saudi Arabia and West African nations to increase supplies to meet any shortfall from Libya lowered the oil price at close.

The International Energy Agency said that the rebellion in Libya may not have impacted oil production as much as feared earlier.

The ASX 200 index rose 27.20 to 4,836.50 and All Ordinaries index added 23.80 to 4,924.90.

World markets are focused on the rapid and chaotic developments in the Middle East and North Africa as Libya splits as Gaddafi clings to power and sees his regime crumble in the eastern part of the nation.

Woolworths Net Surged 6%

Woolworths said first-half net rose 6% to $1.16 billion up from $1.096 billion a year ago period.

The retailer of food and wine and reaffirmed the earnings outlook for the full-year between 5% and 8% and declared interim dividend 57 cents per share.

Food and liquor contribution to pre-tax earnings increased 8.1% to $1.405 billion however, discount department chain Big W’s earnings declined 17% to $125 million and Dick Smith’s earnings dropped 42% to $20 million.

Sinopec Takes 15% Stake in Origin Energy Venture

China Petrochemical Corporation also known as Sinopec agreed to take 15% stake in the liquefied natural gas venture between Origin Energy and ConocoPhillips in Queensland.

The deal will reduce the stake of Origin Energy and ConocoPhillips to 42.5% each.

Sinopec also agreed to purchase 4.3 million tons a year of LNG for the next 20 years with the first shipment expected as early as 2015.

Harvey Norman Net Declines 17%

The furniture and electronics retailer Harvey Norman said first-half sales increased 12% to $804.1 million and net declined 17% to $131.67 million.

The company also confirmed that its recent purchase of 28 Clive Peeters and Rick Hart stores from bankruptcy receivers in July 2010 has delivered lower than expected results. The retailer paid $55 million for the acquisition.

The two store chains delivered total revenues of $124.8 million and generated pre-tax loss of $20.7 million.

Stock Movers

BHP Billiton declined 4 cents to $45.95 after it traded ex-entitlement to its $5 billion share buyback plan. Rio Tinto declined 0.4% to $83.91.

Origin Energy surged 5.8% to $16.83 after China Petrochemical Corporation agreed to take a stake in its LNG venture.

Woolworths declined as much as 0.9% but recovered to close up 14 cents to $26.64.

Telstra added 1.8% to $2.82 after pension fund controlled by the government lowered its stake to 5.75% from 6.75%.

Iluka, mineral sand producer surged 7.8% to $10.66 after it reported full-year revenues rose 60% to $964.6 million and net of $36.1 million.

The production increased 28.5% and sales volume rose 28.3% and the company raised prices three times in the year.