Exporters SPECIAL REPORT FEATURE Exporters
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Exporters SPECIAL REPORT FEATURE Exporters Key takeaways • Big iron ore miners continue dominance of rankings, mid- tier companies reshuffling • Top 10 exporters increase revenue about 18 per cent • Gold Corporation rising after accounting change • Chevron, Roy Hill lift as production ramps up PUMPING: Wheatstone’s second LNG production train came online in June. Source: Chevron Dampier Salt earned about since, to be about $US73/t, reach- $280 million. ing lows below $US40/t in the Rio’s total export figure intervening period. Exports jump as increased about $5 billion, mostly The price drop has been bal- driven by a strong iron ore price anced by a depreciating exchange in 2017, which reached highs of rate and increase in production – more than $US90 per tonne in up 50 per cent to be 280mt in 2018. outlook improves March of that year. Deloitte chief economist Matt BHP, which ranks second on Judkins said WA had entered the the list of biggest exporters, has third phase of the mining boom, Gold Corporation, Alcoa, Roy Hill and Chevron have all a different reporting period, oper- with higher production volumes ating on a financial year ending from big capacity expansions hit- posted higher revenue numbers in Business News’ annual in June, and consequently the ting the market, both in iron ore impact of stronger iron ore and gas. analysis of WA’s biggest exporters. prices in 2017 has already washed “That’s also been supported through its figures. by robust pricing as well, at least The big Australian had total compared to what it was (a few sales of $23.8 billion in the 12 years) ago,” Mr Judkins said. jump on the 2017 figure of $96 revenue from Pilbara iron ore sales months to June, up slightly from Now, miners were focused on billion, driven by production in the 2017 calendar year, with the $23.2 billion in the 2017 financial building replacement production ramp-ups, improving prices, and company selling 271 million tonnes year. as older deposits depleted, he said, in one case, a major change in of the steel-making commodity. Iron ore exports through its through projects such as BHP’s accounting policy. But total production at Rio Tin- operations were about $22.2 bil- South Flank. This year’s total includes about to’s operations was about 330mt, lion, with the company having an That means the big miners will $64 billion of outbound trade by meaning exports across the oper- 85 per cent equity share of about be likely to maintain their places the four biggest iron ore miners, ation were valued at $28.8 billion. $18.9 billion. in the list’s top two spots. and $18.7 billion by the top two oil That additional portion The bigger impact on BHP’s In Rio Tinto’s case, it has held Matt Mckenzie and gas exporters (see list, page includes sales by Gina Rinehart’s export numbers came from the first place since 2010. [email protected] 24). Hancock Prospecting, which Nickel West division, where rev- The biggest mover in 2018 was @Matt_Mckenzie_ Those numbers compare with holds a 50 per cent beneficial enue increased $US348 million state government-owned Gold 6-PAGE FEATURE $60 billion among the big four ownership of the Hope Downs ($450 million) to be $US1.3 billion Corporation, which runs the iron ore players and about $18.4 joint venture. as the market for that metal, used Perth Mint and the gold refinery ESTERN Australia’s billion for oil and gas producers Rio also earns export reve- in electric batteries, rallied by as at Perth Airport. ten biggest export in the 2017 list. nue from Argyle Diamonds and much as 75 per cent. Revenue for Gold Corporation Woperators are pump- The list is ranked by operator, Dampier Salt. For comparison, in the 2013 big- was $18.9 billion, rising from $7.9 ing out about $113.6 billion of and all revenue is attributed to Diamond sales were worth gest exporters list, BHP’s iron ore billion in last year’s list. overseas sales annually between the business in control of day to about $729 million in calendar revenue was about $21.1 billion, at That was enough for the entity them, according to the latest day operations. 2017, up from about $610 million a time when the iron ore price was to lift two places into third BNiQ Search Engine data. Top-placed Rio Tinto reported in 2016, as diamond production trading around $US120/t. position. That represents an 18 per cent $US18.1 billion ($23.6 billion) of increased about 20 per cent. It has fallen about 40 per cent But the big increase was not FEATURE driven by increased production total 2017 revenue from Chevron’s keen to ensure they got projects or a price change, rather a change Gorgon project would be about exactly right when starting up. The longer-term positive in accounting policy, adopting $US3 billion. “There’s a consideration that the AASB 15 standard, accord- view on what the market is For Chevron, 2019 will be the says … there’s a lot of first-time ing to the corporation’s annual first full calendar year with all operators,” Mr Arnold said. report. going to look like in terms of five trains from the Gorgon and “(Some) are commissioning The new rules mean the mint Wheatstone projects in full oper- new types of technology, we have reports revenue, including unal- demand is starting to stimulate ation, so the company’s total will others that are commission- located metals credits received likely increase. ing assets in a new jurisdiction from customers, matched by a investment – James Arnott Woodside’s recently or for themselves, it’s a first- corresponding increase in costs announced plan to build a time operatorship into a new of sale. second train at the Pluto LNG country. The upshot is that revenue Gas movers reported revenue from the ven- facility, would double its capac- “Everybody wants to make in the 2017 financial year was ture at $US1.3 billion. ity and add about $US2.4 billion sure that in the commissioning Gas producers are likely to restated as $18.3 billion in the Assuming all partners have of annual revenue, although the process, it always has a focus on move up the list in coming years. company’s most recent annual similar contract pricing, that project is not expected to begin safety ... on environmental impact US-based energy giant Chevron report, meaning underlying indicates total NWSV revenue of shipping gas until well into the and is done in a way that there is has continued a slow progression growth was 3.3 per cent. about $US7.8 billion ($10.2 billion). next decade. no negative impact to the asset.” up the rankings, settling in sixth Significant discounting in Woodside owns a 13 per cent Shell is expected to join the Regarding new projects, he place this year, with revenue of $4.4 prices for lower-grade iron ore stake in the Chevron-oper- list next year when its Prelude said some operators would seek billion, Business News estimates. impacted on Fortescue Metals ated Wheatstone project, with floating LNG facility begins to get the most out of existing Chevron reported Australian Group’s revenue substantially, Woodside reporting revenue of production, although it is not yet assets, while others would have revenue of $US3 billion ($3.9 bil- reducing it about 20 per cent to $US36 million ($47 million) from clear exactly when that will be. been encouraged by the more be $8.9 billion. lion) in the 2017 calendar year, Wheatstonein the 2017 calendar Prelude will have 5.3 million buoyant oil price. Fortescue dropped one place to which comes from three sources year, after the first LNG shipment tonnes per annum of capacity, a “Five or six years ago we were rank fourth (see page 22 for anal- – its Gorgon and Wheatstone in October of that year. third of the level of Gorgon. talking about $US40 or $US50 ysis on iron ore sector). operations, and its 16.7 per cent Again assuming similar con- Both Prelude and Inpex’s Ich- (per barrel) as the new normal,” The state’s two alumina pro- share of the North West Shelf tract prices across all owners, thys project have been in the he said. ducers both lifted revenue, with Venture, the five-train LNG Wheatstone revenue (attributed commissioning stage for some “(Now), the longer-term pos- Alcoa rising about 37 per cent to plant in Karratha operated by to operator Chevron) would total months. itive view on what the market $4.1 billion, while Worsley Alu- Woodside Petroleum. $360 million. KPMG management consult- is going to look like in terms of mina owner South32 lifted 29 per Woodside, which also holds Extrapolating from these num- ing partner James Arnott told demand is starting to stimulate cent to $2.2 billion. a 16.7 per cent stake in NWS, bers Business News estimates Business News operators were investment.” JOONDALUP HAS THE How can your Services exports, including tourism, education and business services, were business be worth around $81.6billion to Australia’s economy in FY17. part of the next With an endorsed strategy focussed on international business relations and export development, the City of Joondalup and its local businesses are $80billion boom? making tremendous strides in the international services export sector. 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