Oil Search (ASX:OSH) has warned that profits in 2009 will be significantly lower than last year if oil prices remain subdued. Oil Search confirmed its production guidance for 2009 of 8.0 million to 8.3 million barrels of oil equivalent (mmboe).
Oil Search (ASX:OSH) has warned that profits in 2009 will be significantly lower than last year if oil prices remain subdued. Oil Search confirmed its production guidance for 2009 of 8.0 million to 8.3 million barrels of oil equivalent (mmboe).

Sydney, May 13, 2009 AEST (ABN Newswire) - Wall Street ended mixed Tuesday. Dow index finished in a positive territory despite General Motors and banks which mulled capital raising weighed on the market, while S&P 500 and the Nasdaq fell.

Yesterday the Australian shares fell in a day of light trading as the market had a breather after a few weeks of rally. The benchmark S&P/ASX200 index were 1.2%, or 48.8 points, lower at 3877.2, while the broader All Ordinaries index was down 1.2%, or 46.9 points, at 3863.6.

Key Economic Facts and Figures

The Rudd Government has revealed its second budget last night. Treasurer Wayne Swan said the economy would shrink overall, unemployment would rise to 8.5 per cent by mid-2011 and Australia's deficit would be $57.6 billion in 2009-2010. The budget delivers higher pensions payments, lower private health rebate for singles earning more than A$75,000 and a reduction in superannuation tax concessions.

The first home buyer boost scheme is to extend for another three months to September 30. The boost will then be phased down to A$10,500 for established homes and A$14,000 for new homes between October 1 and December 31.

M&A News

Hong Kong commodities trader Noble Group Ltd. (SIN:N21), which is running a A$490 million takeover offer for Gloucester Coal (ASX:GCL), said Wednesday it is launching a case in the High Court of Australia in an attempt to win the right for Gloucester shareholders to vote on a planned merger with Whitehaven Coal (ASX:WHC).

Important Corporate News

Oil Search (ASX:OSH) has warned that profits in 2009 will be significantly lower than last year if oil prices remain subdued. Oil Search confirmed its production guidance for 2009 of 8.0 million to 8.3 million barrels of oil equivalent (mmboe).

Fairfax Media (ASX:FXJ) said its underlying earnings could fall to around A$600 million, before depreciation, amortisation, interest and tax, and assuming no further deterioration in advertising markets.

Sugar and building materials firm CSR Ltd (ASS:CSR) has reported a 17% fall in full-year earnings before interest and taxes, hit by a deterioration in construction markets The company has declared a final dividend of 1.5c, fully franked, bringing the full year dividend to 7.5c, half the 15c paid in 2008.

Shares in property developer Stockland (ASX:SGP) have entered a trading halt pending a capital raising announcement. The company is expected to raise A$1.5 billion capital to relieve pressure on the balance sheet and fund a merger with rival GPT Group (ASX:GPT).

Mineral sands miner Consolidated Rutile Ltd (ASX: CRT) says it is planning to cut back its mining operations in Queensland from 2013 to reduce capital expenditure and operating costs.

Commonwealth Bank (ASX:CBA) will cut its final dividend by 25%, taking it to A$1.15 a share for the six months to the end of this June. The move is a part of a capital preserving plan to help offset to its rising bad debt.

Steel maker OneSteel (ASX:OST) said t had raised the final A$205 million in its A$789 million capital raising. OneSteel also downgraded its 2008-09 net operating profit guidance to around A$200 million, down from its previous guidance of between A$325 million and A$375 million.

Contact

Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net


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