Australia's largest refiner, Caltex Australia, was back in the black thanks to a $400 million turnaround in net profit. While the market was not enamoured by the result, rating agency Standard & Poors liked what they saw and affirmed the company's BBB long-term rating as well as raising its short-term credit rating from A-3 to A-2. S&P also revised the outlook on Caltex from negative to stable.
An expanded asset base following the merger with Orogen Minerals together with higher oil and gold prices saw Oil Search report a 290% increase in net profit for the half-year. The result was driven by a 92% increase in revenue to $450 million as oil and gas production rose by 22%. Like Caltex, the market remained unimpressed, with Oil Search's share price unchanged at 69c.
Engineering outfit Worley Group reported its first maiden half-year result since listing on the Australia Stock Exchange last November. Worley also announced financial close on its first infrastructure investment - a $90 million regional power project in WA comprising of a power station and gas pipeline.
Two problem contracts and a huge Asian tax bill led to fellow engineers Clough conceding it may post a full year loss after reporting an interim $5 million loss for the first half of 2002-03.
Epic Energy this week won a six-month extension from its bankers on debt payments due this month for its Dampier-to-Bunbury Gas pipeline. It is a crucial time for the pipeline business as Epic awaits a decision from the WA gas access regulator on transmission tariffs. The decision is expected to be handed down by the end of this month.
Despite being accused of bullying and blackmail, the Federal Government must be happy that the Senate today passed the Timor Sea Treaty, which provides the legal and financial framework for developing the huge gas resources off Northern Australia.
Ratification of the treaty, which the Howard Government delayed due to a disagreement with East Timor over the Sunrise field, was necessary by today to secure a $20 billion gas contract that ConocoPhillips and its partners in the Bayu-Undan field had secured with Japanese utilities in 2001.
Novus confirmed its Tibat gas discovery in Oman and said there are enough hydrocarbons to support commercial development. While the discovery has given Novus confidence about the prospectivity of the area, the amount of nitrogen in the gas has surprised the company, who conceded it may add to the capital cost.
Orchard Petroleum is having a hard time blooming in the United States with its 2003 drilling program being delayed due to bad weather over the past two months. Orchard plans to spud a wildcat well in the onshore Sacramento Basin in two weeks with another two wildcats following immediately after. The three prospects are Mackert, Robbins and El Quartal.
Fresh from proving up reserves at the offshore Maurantia Chinguetti field, Hardman Resources is looking to start the whole exploration process all over again - only this time in South America. The company said it has just completed a 7,750 sq.km seismic shoot off the coast of French Guiana. Where? It is a small nation that lies between Brazil and Surinam on the Atlantic coast.
Closer to home, the offshore Perth Basin appraisal well, Cliff Head-4, was spudded. Not that anyone in the market bothered to notice after the last three wildcat wells in the Cliff Head drilling program being plugged and abandoned as dusters. Hoping for a better result onshore, Origin Energy told the market long-term testing of Jingemia oil discovery is to kick off in about two weeks.
Finally, crude is at 12 year highs with a barrel of oil being sold in New York around the $US37 mark. Not helping were comments by US officials that Iraq had failed to show that it was willing to genuinely co-operate with UN weapons inspectors.
