Last week it was the banks and insurers that dominated the Australian December 31 reporting stream, helping the ASX to a nice gain ahead of the escalation of tensions over Russia and Ukraine.
This week those tensions will continue and overshadow reporting stream to be dominated by a couple of big miners and two oil and gas giants, a big insurer and a string of major industrials.
In fact this week will be the peak of the Australian December 30 interim and full year reporting season.
BHP, the market’s biggest company, releases its interim which will be lower than a year ago and probably a trimmed dividend.
BHP reported underlying earnings before interest tax depreciation and amortisation (EBITDA) of $US14.7 billion as it rode recovering iron ore, copper and oil prices higher in the six months to December 31, 2021 with a net profit from operations of $US9.8 billion. Interim dividend was raised to $US1.01 a share which BHP will be will not be able to maintain.
Likewise, rival iron ore exporter, Fortescue reports its December results and it will not be able to match its interim result of an underlying EBITDA of $US6.6 billion and record half year dividend of $A1.47 a share.
Gold miners Evolution (Wednesday) and Newcrest (Thursday) reveal half year figures. Evolution will have to overcome investor worries about the performance of its Red Lake mine in Canada while Newcrest – which is completing the $3.7 billion takeover of Pretium, a Canadian gold miner – will have to assure investors that problems in the Cadia mine in NSW and Lihir in PNG have been overcome.
As well, investors are looking for an update from Newcrest on the future development of the Havieron prospect near Telfer in the East Pilbara.
South 32 will report what most analysts reckon will be a record profit on Thursday thanks to higher coking coal prices and expanded silver output.
Woodside and Santos report their full year figures as well and have already hinted at a strong set of figures reporting record revenues from oil and gas sales for the 12 months in their production reports.
The actual profit results and size of the dividends will be major interests in this week’s report and whether both companies remain confident with oil and LNG levels remaining at multi-year highs.
Origin also reports its half year figures and weak domestic gas sales and prices could offset higher revenues from its Queensland LNG export project.
Beach Energy, controlled by Kerry Stokes, Seven Group Holdings, also releases its half year figures and dividend which should show a big improvement on a year ago.
Insurer QBE reveals its full year figures and so far there’s been none of the pre-release warm-up with news of weaker revenues, margins, more storms etc that we have seen in the past.
CBD office, retail and now growing logistics business, GPT is also release its full year figures as well – it signalled its future direction last month with a greater emphasis on logistics with a major management restructure. Global light industrial developer, Goodman Group is also due to report.
The CBA did better with its half year report but the NAB gave a end of week jolt with signs of good cost controls and market share gains, even if interest margins fell, like they did in others.
Super regional bank, Bendigo and Adelaide releases what are expected to be a weak set of half year figures after the bank revealed its hand a week ago with a restructuring that will see its rural and business operations combined.
CSL reports its half year and after weak figures from US vaccine giant, Pfizer and acknowledged cost increases in its blood collection operations, analysts are wondering if CSL can maintain its solid momentum of the past three years.
Finally retailers like JB HI Fi (today) and Breville (Tuesday), Wesfarmers and Beacon Lighting (Wednesday) and The Reject Shop (Thursday) will give a us a good idea about how strongly the sector performed during the Delta lockdowns late last year and the Omicron disruptions in December, January and February, along with the size of dividends for the half.
Treasury Wine Estates’s results will be watched closely as its US sales have been strengthening and making up for the China’s punitive tariffs and bans. Its Australian sales have been solid thanks in part to the lockdowns.
Companies reporting include:
- Today: GPT, Boral, Adore Beauty, Beach Energy, Aurizon, JB Hi Fi, Bendigo and Adelaide Bank and Carsales.com.
- Tuesday: Ansell, BHP and GWA.
- Wednesday: Breville, CSL, Ebos, Fletcher Building, Fortescue, TWE, Wesfarmers, Redbubble, Orora, Goodman Group, Origin and Santos.
- Thursday: Beacon Lighting, Cleanaway, Magella Financial, Newcrest, South 32, Telstra, Rabcorp, The Reject Shop, Star Entertainment, Transurban, Whitehaven, Domain, Crown, Woodside.
- Friday: QBE, Inghams.
