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Reporting season is in full swing, with Transurban's stock dropping on revelations its beleaguered West Gate Tunnel project is facing a $3.3b cost blowout, and insurance company Suncorp banking a $1b profit.
Key points:
- Reporting season has kicked off in full swing with Suncorp and Transurban up today
- Transurban has revealed a $3.3b cost blowout
- Suncorp increased earnings by $1b
At 1:00pm AEST, the ASX 200 was up 0.1 per cent to 7,547.
That continues the share market's high, despite ongoing lockdowns across Australia and warnings that the country's economy is taking a renewed hit.
Suncorp was the ASX 200's biggest mover, with the insurance company gaining 8.3 per cent after it revealed its results.
The insurance and finance company's earnings rose by nearly half over the 2021 financial year due to record low interest rates and higher insurance profits.
The firm said a higher number of natural disasters caused by the La Niña weather pattern saw a rise in the number of premiums it had to pay out.
It also gave COVID-19 support to more than 85,000 customers.
Suncorp's cash earnings increased 42 per cent to $1.04 billion, while net profit rose 13.1 per cent to around the same amount.
Investors are set for a final dividend of 40 cents a share, and 8 cents a share special dividend.
The bank is also returning $250 million to investors through a share buyback.
ABC Rural: Tom Major
)Rivals IAG and QBE had also gained around 4 per cent each.
Meanwhile, hauling company Aurizon reported lower earnings from coal freight, because of disruptons from COVID-19 and China's ban on Australian iron ore.
Net profit for the year was flat at $607 million.
Its share price still rose marginally by 0.5 per cent.
Westpac and CBA gained more than 1 per cent, pushing the financials index 1.1 per cent higher overall.
Westpac announced the sale of its domestic life insurance business to Japan's Dai-ichi Life Holdings for $900 million, as part of efforts to focus on its core businesses.
Transburban takes a hit on $3.3b West Gate blowout
Transurban one of the biggest names revealing results today.
The operator and developer of urban toll road networks posted a statutory net profit of $3.3 billion.
But it also revealed its key project in Melbourne is facing a cost blowout of the same figure.
The West Gate Tunnel project has been mired by issues due to the discovery of PFAS-contaminated soil, disputes on where that should be stored, and staff being laid off.
ABC News: Patrick Rocca
)The joint venture with the Victorian government and CPB John Holland was originally due to be completed in 2022.
"As previously noted, project completion in 2023 is no longer considered achievable," the company said.
"A further update on the expected project completion date cannot be provided at this stage.
"The contracted total cost of the project was $6.7 billion.
The company's share price was down 1.64 per cent in afternoon trade.
Other drags on the market included News Corp (-7.6pc) and a range of gold miners.
That was after the price of gold dropped globally on fears that the US would soon start winding back economic stimulus.