What’s latest in Australia’s Energy Space - WPL, WHC, CTX

  • Jan 17, 2020 AEDT
  • Team Kalkine
What’s latest in Australia’s Energy Space - WPL, WHC, CTX

The energy sector of Australia happens to be the most prominent sector and plays an important role towards the development of its economy. The energy sector includes companies that deal in oil, gas, fuel, hydrocarbons, PNG and other liquid fuels. Australia possesses energy resources from renewable as well as non-renewable sources and is often regarded as a large exporter of energy.

In the below article we will gauge at the latest updates of three energy giants of Australia.

Woodside Petroleum Ltd

Woodside Petroleum Ltd (ASX: WPL) is an explorer, evaluator, developer, producer and marketer of hydrocarbon.

Upsurge in Sales Revenue by 12%

The company recently updated the market with the strong results for the fourth quarter (December 2019), which was supported by Greater Enfield. The company also made significant progress on its major growth projects and outlined the following:

  • During the quarter, the company reported production of 25.7 MMboe with a rise of 3% as compared to the previous quarter.
  • It experienced an increase of 12% in sales revenue, which amounted to $1,304 million. When compared with third quarter, the company also witnesses improvement in sales revenue because of strong performance from Greater Enfield.
  • Within the same time span, it executed a long-term sale and purchase agreement (SPA) with Uniper Global Commodities SE for the sale of LNG for a period of 13 years, which would be starting in 2021.
  • On the outlook front, the company is aiming increased production in 2020 after the successful execution of its near-term growth projects. The company undertook final investment decision (FID) for the pipeline component of the Pluto-KGP Interconnector, which reflects another key step for realizing its vision for the Burrup Hub.

Moreover, Rufisque Offshore, Sangomar Offshore as well as Sangomar Deep Offshore (RSSD) joint venture has approved the Sangomar Field Development Phase 1 and the company has entered the execute phase of activities. WPL being an operator of the RSSD JV, has performed the purchase contract for the offloading (FPSO) facility and floating production storage. It has issued full notices in order to advance for the installation contracts as well as drilling and subsea construction.

At 2:34 PM AEDT on 17 January 2020, the stock of WPL quoted $35.66 per share, down by 0.93%. The stock has delivered returns of 12.82% and 2.68% in the last three months and six months, respectively.

Whitehaven Coal Limited

Whitehaven Coal Limited (ASX: WHC) is engaged in the exploration and mining of coal. Whitehaven officially got listed on Australian Stock Exchange in 2007.

Decline in Saleable Coal Production

WHC notified the market about the results for the December quarter of FY2019 and outlined the following:

  • For the twelve months ended 31December 2019, the total recordable injury frequency rate (TRIFR) stood at 5.72. However, TRIFR of the group remains well below the coal mining average of 14.64 of New South Wales.
  • ROM coal production for the last quarter stood at 3.1 Mt, reflecting a fall of 58% as compared to the prior corresponding period.
  • For the December 2019 quarter, the saleable coal production reached at 3.1Mt, showcasing a fall of 44% on prior corresponding period. Coal sales experienced a decline of 17% and stood at 4.5 Mt.
  • It was also mentioned that production results for the quarter indicates the impact of the previously reported labour shortages as well as dust events at its largest mine. The results also experienced an impact of Maules Creek and the scheduled Narrabri mine longwall move from LW108 to LW109.
  • Moreover, the company is making investment in the people, processes as well as equipment, which are required to overcome short-term challenges, for delivering improved operational performance and to execute on its growth strategy.

In another update, the company announced that Lazard Asset Management Pacific Co has made a change to the substantial holdings in the company and the current voting power stands at 12.58% as compared to the previous voting power of 10.95%

At 2:40 PM AEDT on 17 January 2020, the stock of WHC quoted $2.61 per share, up by 0.77%. The stock delivered negative returns of 18.55% and 28.58% in the last three months and six months, respectively.

Caltex Australia Limited

Caltex Australia Limited (ASX: CTX) is involved in the purchasing, refining, distribution and marketing of petroleum products. The company is also in the operations of convenience stores.

All about Caltex Refiner Margin

  • The company recently intimated the market about its Caltex Refiner Margin pursuant to CRM sales from production during the period of three months starting from October to December 2019.
  • The company added that Q4 FY19 CRM amounted to US$7.51/bbl, which was below the CRM of US$10.53/bbl for Q3 FY19 as well as the prior year comparative. The company added that improved operational performance ha witnesses CRM sales from production in Q4 FY19 of 1,586 ML, which was above Q3 FY19 and the prior year comparative.

In another update, the company responded towards a media speculation pursuant to EG Group considering an offer for Caltex. The company added that since the announcement of receipt of an confidential, non-binding, unsolicited, conditional, and indicative proposal from Alimentation Couche-Tard Inc. for acquiring CTX shares, parties have approached CTX (which include EG Group) who have indicated that they are interested in making a proposal to acquire CTX (or few assets).

At 2:46 PM AEDT on 17 January 2020, the stock of CTX quoted $34.86 per share, down by 2.13%. The stock has delivered returns of 33.06% and 40.24% in the span of three months and six months, respectively.

 

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