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AGL Energy Limited (AGK) said it has entered into conditional arrangements for the construction of Macarthur Wind Farm in south-west Victoria under a joint venture with New Zealand’s Meridian Energy Limited. The company said the agreement follows the Federal government’s announcement last week of proposed changes to the operation of the Renewable Energy Target (RET) scheme.

AGL said it would take all of the wind farm’s energy output and renewable energy certificates.

”The contractual arrangements are subject to a number of conditions precedent, including approval by the Boards of the joint venture partners,” the company said.

”A key consideration of AGL’s Board in approving the transaction will be certainty around the final form of the legislation to give effect to the Federal government’s announced changes to the RET scheme.”

AGL said the wind farm would comprise 174 Suzlon S88 turbines for a total capacity of 365MW, which is expected to deliver approximately 945 gigawatt hours of electricity each year.

The company said construction is expected to take about three years.

As at 1041 AEDT, AGL shares were up 17c to $14.54.

AWE Limited (AWE) this morning said that it has increased its equity in the Bass Gas project from 42.5% to 57.5%. As previously advised, the purchase consideration will be adjusted on completion as necessary to reflect the effective date. The acquisition of this 15% equity interest will add to AWE’s gas, condensate and LPG production and will also add approximately 10 million barrels of oil equivalent (”BOE”) to AWE’s proved and probable reserves. “AWE is extremely pleased to announce this increased equity in the BassGas project which will provide meaningful, sustainable long term cash flows to AWE shareholders,” AWE Managing director, Bruce Wood said.

Carnarvon Petroleum Limited (CVN) reported a net profit after tax of $7.4 million for the half-year ended 31 December 2009, down 64.2% on the previous corresponding period. The company said the result primarily reflected the impact of a lower Australian dollar equivalent oil price derived during the period and a decrease in production compared to the half-year ended 31 December 2008. Carnarvon reported a 47.3% drop in revenue, while the company attributed the decline in production to an exploration focused drilling programme during the period. The company said the drilling programme would be more focused to development wells for the remainder of the calendar year in order to build on current production levels.

PanAust Limited (PNA) said it has made a binding offer to Corporación Nacional del Cobre de Chile (“Codelco”) for the Australian company to acquire a majority interest in the Chilean company Inca de Oro S.A. Following a re-structure of Codelco subsidiaries, Inca de Oro S.A. will own the Inca de Oro Copper/Gold Project where an Indicated and Inferred sulphide Mineral Resource of 259 million tonnes grading 0.46% copper and 0.13g/t gold has been identified. PanAust’s interest in Inca de Oro S.A. will be held through a 90% interest in PanAust Minera. An independent Australian private investment company, The Minera Group, will hold the other 10% of PanAust Minera. PanAust Minera will initially invest US$45 million of equity into Inca de Oro S.A. to acquire 66% of the company.

Rio Tinto Limited (RIO) said it has agreed to acquire 15 million shares in Ivanhoe Mines Limited for C$244.7 million. The mining giant said the acquisition would increase its ownership in Ivanhoe Mines by 2.7% to 22.4%.

Chief executive of Rio Tinto's copper division, Andrew Harding said the investment underlined the company’s confidence in the quality of the Oyu Tolgoi deposit and its priority in the Rio’s project portfolio.

”We are working with Ivanhoe Mines on finalising the conditions precedent for completion of the Investment Agreement with the Government of Mongolia and are looking forward to moving into the development phase of the project,” Mr Harding said.

Rio Tinto said it is being issue the shares satisfaction of an arrangement with Ivanhoe Mines in 2008 to finance equipment for the Oyu Tolgoi copper-gold complex in Mongolia’s South Gobi region.

The company said production of the project is expected to commence in 2013, with a five-year ramp up to full expected production of 450,000 tonnes of copper per year and 330,000 ounces of gold.

Upon completion of the acquisition, Rio said it would own 98.6 million shares of Ivanhoe Mines and if the company were to exercise all of its share purchase warrants and convert its US$350 million loan into shares it would own approximately 267.6 million shares, or 44% of Ivanhoe Mines.

The company said it has the right to exercise its share purchase warrants and/or convert its convertible loan into shares of Ivanhoe Mines, and also the right to acquire additional securities so as to maintain its proportional equity interest in Ivanhoe Mines, and the right to acquire additional Ivanhoe Mines securities in certain other circumstances and subject to certain limits.

As at 1029 AEDT, Rio Tinto shares were up 64c to $71.14.  

RBS – Round Up – 010310

Clive Peeters Limited (CPR) squeezed out a modest $424,000 profit in the six months to 31 December, despite posting revenue of $252 million. The profit figure was down 57%, while revenue dipped just 5% from the previous corresponding period.

Clive Peeters said the bottom line was affected by ‘misappropriation of funds’.

In August last year, the company said that one of its payroll employees had embezzled up to $19.4 million. At the time, the company said it believed up to $16.4 million could be recovered through the sale of properties.

Managing director, Greg Smith, said the company considered it a ‘very creditable result’.

“Some erosion of gross margin occurred during H1 2010 due to a more competitive retail environment,” Mr Smith said.

”However Clive Peeters margins were impacted negatively as a result of the misappropriation events and the associated impact this had on our supply channel and rebate revenue.”

Looking to the second half of the year, the company said lifting margins was a key priority for the company.

However, Clive Peeters said both January and February had seen sales ‘significantly’ below expectations.

Looking at the numbers in more detail, Clive Peeters reported EBITDA and EBIT of $4.6 million and $2 million respectively, down 28% and 43%.

The board declared that it would declare a dividend as it tries to shore up capital.

At the close Friday, Clive Peeters shares were 28c. The company was trading at an all time high of $3.50 in April 2007.

Westpac Banking Corporation (WBC) said today that it commenced operating as a single authorised deposit-taking institution (“ADI”). Australia’s second largest bank by market capitalistaion said in moving to a single ADI all the assets and liabilities of St.George Bank Limited have become those of Westpac’s.

The company said the process of transitioning to a single ADI was first detailed in a statement on 12 February 2010 and was finalised following APRA and Federal Court approval.

“In conjunction, the legal entity, St.George Bank Limited, has been deregistered,” Westpac said.

“The move to a single ADI and deregistration has no impact on the separate St.George brand and branches.”

Westpac added that the change would have no impact on customers’ ordinary interactions with St.George.

At the close of trade Friday, Westpac shares were trading at $26.13.

The release of mixed data on Friday, and through the week, saw Friday’s session bring February to close on a flat note. Reports out this week included disappointing reads on joblessness, durable goods orders and housing, while investors were buoyed at week’s end with a better-than-expected rise in GDP to a 5.9% annual rate.

In other economic reports, the Chicago purchasing managers' index on regional manufacturing was improved, while consumer confidence reads from the University of Michigan slipped modestly.

It proved to be a volatile month for the S&P 500, however it finished 2.9% higher, and the best performance since November and the best February since 1998.

The Dow Jones rose 4.23 points, or 0.04%, to 10,325.26, the S&P 500 gained 1.55 points, or 0.14%, to 1,104.49 and the NASDAQ picked up 4.04 points, or 0.18%, to 2,238.26.

Insurance giant AIG, which was the recipient of so much government bailout money, and then anger for paying it as bonuses, posted a massive $9 billion loss for the last quarter alone. Its shares tumbled 10%.

Citigroup lost 0.3%. The bank said its board of directors would shrink by two to 15 in total.

It was a good session for other financial stocks, with only Wells Fargo, down 0.4%, losing ground amongst the majors.

JPMorgan put on 3.3%.

Among the tech stocks, Apple rose 1.3%, while Microsoft was 0.2% up. Most other tech stocks were less than 1% above the gain line.

It was a different story for the retailers with disappointing consumer confidence reports seeing the sector fall.

Macy’s gave up 0.7%, while Saks was 3.1% weaker.

Proving the importance of a strong management team, shoemaker Croc’s shares tumbled 9.5%, despite beating the street’s expectations with strong earnings figures and a bullish outlook. Instead, investors reacted to the announcement its CEO would resign.

NYMEX light crude oil for April finished up US$1.49 to US$79.66 a barrel.

Exxon Mobil lost 0.2%, however rival Chevron countered with a 0.3% gain.

COMEX gold for April delivery added US$10.40 to US$1,118.90 per ounce.

European Markets

European markets rebounded on the positive GDP figures out of the US. The banks led the rally, while the miners added to gains as commodity prices recovered losses from earlier in the week.

The UK benchmark FTSE 100 rose 76.30, or 1.45% to 5,354.52, the German DAX added 66.13, or 1.20% to 5,598.46 and the French CAC40 climbed 68.03, or 1.87% to 3,708.80.

Among the UK banks, Barclays and HSBC were 1.8% and 1.4% stronger.

It wasn’t a good day for Lloyds whose shares tumbled 4.4%. The company reported a worse-than-expected loss on widening bad loans following its takeover last year of HBOS.

French banks Credit Agricole and BNP Paribas were 4% and 3.2% stronger, while Deutsche Bank added 2.3%.

Volkswagen shares shed 0.8% after the carmaker said its profit had fallen 80%. German peer Daimler was 1% stronger.

In France, Renault and Peugeot rallied 2.7% and 2.2%.

Aussie mining peers, BHP Billiton and Rio Tinto put on 2.4% and 3.5% respectively.

Anglo American and Xstrata gained 3.6% and 3% respectively.

Among the more obscure stocks to receive attention, Seadrill rose 9.2% after the Norwegian oil-drilling contractor reported a bigger-than-expected rise in quarterly operating profit.

Elsewhere, building materials group Saint Gobain spiked 7.9%, also on the back of stronger than expected results.

Bayer fell 1.4% in Germany after forecasting a 2010 profit below analyst’s earlier expectations.

BASF, the world’s largest chemical maker, gained 0.3%.

Japanese Markets

The Nikkei edged higher Friday on the back of positive factory output data and consumer sales. Carmakers gained ground, finishing a poor month on a high note.

Factory production rose 2.5% – posting its 11th straight month of gains.

The Nikkei 225 gained 24.07, or 0.24% to 10,126.03.

Toyota climbed 1.8% after Citigroup upgraded the stock, while Mazda surged 4%.

Isuzu also gained, up 2.3% although Nissan bucked the trend, shedding 0.4%.

Aeon, the Japanese equivalent of Woolworths, put on 2.9% after yet another broker upgrade.

The gains from retailers and automakers were countered by declines from the banks.

Mitsubishi UFJ Financial Group lost 0.4%. It was the most heavily traded stock of the day.

Consumer electronics heavyweight Pioneer gave up 2.5%, while Sony put on 0.2%.

Hong Kong Markets

The Hang Seng gained just over 1% Friday on the back of strong earnings figures and a rise from their mainland counterparts. The index posted its biggest one-month gain since last October.

The Hang Seng rose 209.13, or 1.03% to 20,608.70.

In a wrap of the banks, Bank of China gained 0.8%, while ICBC rallied 1.1%.

HSBC was 0.6% stronger.

Mobile phone carrier China Unicom was the major mover, jumping 7.6% on the back of a broker upgrade from Deutsche Bank.

China Mobile, the largest carrier in the country, was 0.2% stronger.

It wasn’t just mobile carriers doing well, with fixed line telco China Telecom 3.3% above the gain line.

Internet service provider Tencent put on 1.9% following news a rival beat expectations.

Cathay Pacific, Hong Kong’s official airline, rallied 2.1% after saying it would invest in Air China’s cargo unit.

Oil producers Cnooc and PetroChina added 1.2% and 1.6% respectively.