Gas Week

EWN Publishing

Five years of double-digit profit growth encourages pouring billions of dollars into new projects and equipment

Posted by gasweek on 28 September, 2007

Five years of double-digit profit growth was driving a spending boom across corporate Australia as the nation’s largest companies ploughed billions of dollars into new projects and equipment, reported The Australian Financial Review (25/9/2007, p. 1). Mining and energy leads charge: Most of the investment was being carried out by mining and energy companies, the AFR reported, which were expected to sink $22.1 billion into projects and equipment this year — and a further $28.2 billion in 2007-08 — as they battled to keep pace with China’s voracious appetite for raw materials. The spending spree by resource companies was driving mineral and energy export earnings, which were tipped to grow by 4 per cent to $112 billion in 2007-08, according to a report released yesterday by the Australian Bureau of Agricultural and Resource Economics (ABARE). “We are now starting to see the benefits of recent high levels of investment in the Australian mining industry, with the volume of mineral resources production and exports increasing,” ABARE executive director Phillip Glyde said.

The Australian Financial Review, 25/9/2007, p. 1

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