The Washington Soul Patts/Brickworks companies are reporting this week: they are out tomorrow, all being well.
Yesterday we saw profit figures from two smaller outriders, New Hope Corporation, the coal miner and Telco and internet group, SP Telemedia.
Both results were OK: SP Telemedia turned itself around after acquiring the TPG technology business, which has transformed it; New Hope was boosted by the fat profit from selling the Saraji coal project back to BHP-Mitsubishi for considerably more than it paid for it.
New Hope reported a sharp rise in annual profit because of the boost from the sale of the New Saraji deposit.
Net profit rose to $1.95 billion for the year ended July 31 from $90.68 million in the previous year, following the sale which was completed a year ago in September 2008.
New Hope sold the New Saraji project near Dysart in central Queensland to the BHP Billiton Mitsubishi alliance for $2.45 billion.
Operating net profit from its coal mining, port and other operations rose 82% to $150.5 million, thanks to the record prices for export thermal and coking coal for much of the year.
But the company warned that after the fall in prices from those record levels, profit is likely to fall in the current year due to lower export coal prices.
The company said that total saleable coal production from its operations in the 2009 year was 5.140 million tonnes, 15.5% higher than in 2008.
”Total coal sold during the year was 11.7% higher at 4.972 million tonnes, compared with 4.451 million tonnes sold in the 2008 year.
"Coal export volumes rose by 643,000 tonnes, or 19.9% to 3.868 million tonnes while domestic sales were 1.104 million tonnes, being 122,000 tonnes or 10% lower than the previous year.
"Our wholly owned Queensland Bulk Handling operation at the Port of Brisbane has also contributed to the improved operating result through an increase of 11.8 per cent in throughput," chairman Robert Millner said in a statement.
Revenue for fiscal 2009 rose 112.5% to $700.8 million.
New Hope declared a final dividend of 4.5 cents, up from 3.5 cents in the previous corresponding period.
It will also reward shareholders with a special dividend of 72.75 cents a share from the proceeds of the New Saraji sale, taking the total payout for the year to 82 cents.
"In deciding the amount of the special dividend, the directors have taken into consideration the company’s ongoing capital requirements, likely lower operating result in 2010 due to lower export coal prices, and the need to continue to actively pursue new investment opportunities in the energy sector to achieve profitable growth," Mr Millner said.
The company said that it lifted its stake in coal seam gas player, Arrow Energy (which has Shell as the major holder) during the year.
New Hope acquired its initial shareholding in Arrow Energy in July 2006, and has subsequently increased its shareholding via exercising options and purchasing additional shares.
"As at 31 July 2009 New Hope held 122.6 million shares at a total cost of $119.3 million; equivalent to 16.9% of the company.
"Arrow Energy’s share price on 31 July 2009 was $4.29, valuing the New Hope investment at $525.9 million and representing an unrealised gain before tax of $406.6 million," the company said.
New Hope shares rose, then eased yesterday off the back of the profit report. They ended down four cents at $5.76.
Meanwhile SP Telemedia says it exceeded guidance in posting annual net profit of $17.7 million for the 2008-09 year and says there’s more to come from growth in broadband subscribers.
SP Telemedia, which trades under the names SOUL and TPG, said yesterday the profit in the year to July 31 of $17.7 million was more than 10% above guidance for a net result of $16 million.
It was also a sharp improvement on the net loss of $18.9 million in 2008 financial year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) for fiscal 2009 was $98.5 million, up from $24.9 million in the previous year and also more than the forecast $93 million.
Revenue was $481 million, up from $446 million in the previous corresponding period.
The market loved the result, the shares jumping 10% and more during the day to a high of $1.04 cents. They ended on 98.5 cents, up 7.6% on the day.
SP Telemedia declared a fully franked dividend of one cent per share, bringing the full year dividends to two cents.
"The group’s strong profit growth is forecast to continue," the company said in a statement.
Directors forecasts EBITDA of $130 million in fiscal 2010, EBIT of $71 million and revenue of $460 million.
"The continued growth of the business has been underpinned by broadband subscribers, with net additions for the FY09 year of 88,000 including 56,000 added in the 2nd half-year.
"Total broadband subscribers have reached 400,000 in September 2009.
"The TPG consumer mobile offering, since its inception in late 2008 has already been taken up by more than 90,000 subscribers, comprising new customers and customers transferring from their Soul post paid plans.
"The corporate and government business has continued to focus on improving systems and processes resulting in improved customer service levels, with increasing on-net services providing impr
