Investment Matters

Company News: Alternatives sub-portfolio

Australian Equities sub-portfolio

Viva Energy (positive impact) is likely to benefit from a $211 million package announced by the Morrison Government, while looks to secure Australia’s long-term fuel supply. As part of the package, there are plans for a refinery production payment, to help ensure the ongoing competitiveness of local refineries.

Viva Energy’s Geelong refinery was one of Australia’s first post-war refineries to come on stream and produces approximately 50% of Victoria’s and 10% of Australia’s fuel, employing approximately 700 people. Profits from the refinery are volatile and subject to the oil price - but can be substantial in good years.

We see that any such package will be beneficial in sustaining the company’s refinery during the current oil price downturn and help establish a floor on the volatility in profits from its refinery.

 

Property sub-portfolio

Unibail-Rodamco-Westfield (neutral impact) announced a “Reset Plan” on Thursday. The plan involves a number a measure to help fortify the company’s balance sheet post-pandemic, including raising more capital, a reduction in capital expenditure and the reduction of dividends. The capital raise will be subject to approval by investors at a meeting to be held later in the quarter.