Bell Potter

Whitehaven Coal: Total Coal sales up 7% to 7796 kt | Unit costs fell by $2/t to $56/t (driven by a range of savings associated with scale increases, productivity improvements and improved procurement practices | Net debt was lower at $628m (pcp 924.9 million) with gearing 17% | Operating cash flow $263.6m as compared to $118.3 in pcp | Outlook: “Full year saleable coal production is expected to be in the range of 21Mt to 22Mt. Costs in the second half are likely to increase slightly as production of metallurgical coal increases.


DUET Group: Proportionate Adjusted EBITDA down 10.7% to $417.3m. Proportional earnings down 6.8% to $233.2m (11% below our estimates due to weaker realized pricing in Energy Developments as contracts rolled over | Operating company proportionate earnings: DBP down 0.1% to $59.1m; DBP Development down 6% to $14.8m; Energy Developments down 7.8% $62.3m; United Energy down 7.2% to $83.5m; Multinet Gas up 10.1% to $45.5m; Net operating cash flow up 14.6% to $462.1 m; DUE has noted that they continue to work with CKI to progress their takeover offer. Scheme meeting expected to be held on 21 April 17. | Outlook: DUET’s FY17 DPS guidance of 18.5cpss is reaffirmed. Guidance expected to be covered by full-year proportionate earnings on a cents per stapled security basis.



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