Christchurch pummelled by 6.3 magnitude Earthquake: Economy Roundup

Christchurch has been struck by a 6.3 magnitude earthquake just months after a similar event shut the city down for days, with reports of people trapped in collapsing buildings and power lines shut down.

Reports have shown the city’s cathedral has taken a massive hit, and is in danger of collapsing. The Christchurch Hospital has also been evacuated, and the airport has been closed.

Images show buildings down all across the main street, with reports also indicating that water lines have been blown in some areas.

Seek shares plummet 10% on missed guidance

Online job ads site Seek has seen its shares fall 10% this morning after the company announced a record profit that was below its own guidance.

The company said it recorded a 31% increase in net profit after tax to $47.9 million in the six months to December 31, with revenue also up by 22% to $159.53 million – but the market was expecting $165.17 million.

Seek shares fell over 10% to $6.34 this morning after the announcement.

In an announcement to shareholders, chief executive Paul Bassat said the company was expecting profit to be greater in the second half, and said there were good growth opportunities where markets are still in their infancy.

“Both businesses continue to achieve strong financial results and excellent growth in key job seeker metrics,” he said in reference to its Latin American holdings.

Andrew Bassat, who has signed a new deal to remain as chief executive until 2013, also said conditions in the company’s education sector had been challenging.

“During the half, Seek’s education businesses experienced some headwinds. Despite this we remain confident of the growth potential of each of these businesses.”

Business conditions soft in December quarter

Business conditions softened in the December quarter due to falls in profitability, trading and employment conditions, the latest National Australia Bank survey has found.

The survey of over 900 companies found capital expenditure plans for the 12 months remain unchanged, and long-term employment goals still remain, but the measure of business conditions still dropped three points to just two.

The index of confidence dropped four points to five.

“The survey suggests that optimism about the outlook was on the wane even before the severe floods in December and January,” NAB said.

The transport and utilities, agribusiness, business services and finance sectors all recorded declines in conditions. “This is consistent with ongoing weakness in domestic demand, reflected in soft forward orders and declining capacity utilisation,” the bank said.

Conditions were higher in property, recreation and mining.

Many companies said lack of demand was a constraint on profitability, NAB reported.

Shares lower over Mideast unrest

The Australian share market has opened lower this morning with Wall Street closed for Presidents’ Day and European markets nervous over continued political unrest in the middle-east.

The benchmark S&P/ASX200 index was down 28 points or 0.58% to 4871.8 at 12.10 AEST, while the Australian dollar also fell to remain just over parity, down from $US1.01 yesterday.

AMP shares lost 1.61% to $5.51, while Commonwealth Bank shares dropped 1.09% to $53.33. NAB dropped 1.34% to $25.79 as Westpac also lost 1.08% to $23.81.

Oil prices have skyrocketed to over $US108 a barrel, the highest point in nearly three years, due to the unrest in Libya.

BHP reveals share deal worth $US4.7 billion

Mining giant BHP has announced a $US4.75 billion deal with Chesapeake Energy Corporation which will see the company’s resource base expand into the United States shale gas business.

BHP shares lifted nearly 3% after the deal was announced to $47.19.

The company will pay $US4.75 billion in cash for Chesepeake’s holdings in Arknasas’ Fayetteville shale natural gas interests.

“The operating position we are obtaining will immediately make BHP Billiton a major North American shale gas producer,” BHP Billiton petroleum chief Michael Yeager said in a statement.

“It provides access to a competitive, long-life resource basin that benefits from our ability to invest through the economic cycles.”

Austar profit rises 69% in 2010

Pay television provider Austar has recorded a 69% increase in net profit to $69.6 million for the year ending December 31, with revenue also rising 5.4% to $711.3 million.

The company’s shares gained 4.58% this morning to $1.14 this morning.

“2011 has already presented many challenges to regional Australia, Queensland in particular,” Austar chief executive John Porter said in a statement.

“AUSTAR is looking forward to the opportunities that will be presented by the national broadband network, so it makes sense to streamline our activities as we develop new products which can take advantage of the new network.”