News Wrap

IN THIS morning’s News Wrap: Seven Group Holdings earnings hit by tough conditions; Caltex retains M&A firepower with modest buyback; and Iron ore edges higher but rally fails to sway BHP outlook.

Lou Caruana

Seven Group Holdings earnings hit by tough conditions

Kerry Stokes' Seven Group Holdings says its foray into oil and gas remains a sound strategy despite the collapse in oil prices, indicating it will continue to push for consolidation within the Australian east coast gas sector, according to the Australian Financial Review.

Concurrent downturns in industrial services, energy and media resulted in lower earnings before interest and taxes in all of the conglomerate's key businesses during the first half of the financial year.

Caltex retains M&A firepower with modest buyback

Oil refiner and marketer Caltex has kept the firepower needed for a sizeable acquisition even as it has announced a share buyback and dividend hike after buoyant 2015 earnings, according to the Sydney Morning Herald.

The $270 million buyback followed a lift in the 2015 net profit to $522 million, from just $20 million a year earlier. Revenue fell to $20 billion from $23.9 billion a year earlier because of the oil price fall.

Iron ore edges higher but rally fails to sway BHP outlook

The surge pushing iron ore prices back above $US50 a tonne has failed to shake BHP Billiton's view that prices will stay low as supplies swamp the market and China's slowdown hurts demand, according to the Sydney Morning Herald.

BHP warned Tuesday that weaker prices and higher volatility across commodity markets - including iron ore - will probably persist.

topics

loader