Home' InDaily : April 1st 2011 Contents PARTNERS
APRIL 1ST APRILA 2011
Information sourced from Deloitte
The annual 2010 Deloitte Motor Industry
Overview has highlighted how the motor
industry experienced startlingly different
results during 2010. Results from the first
six months of the year benefitted from the
flow on effect of the investment allowance, production
slowdown and lower interest rate, with record sales across
However according to the report’s author, Danny Rezek,
Deloitte Motor Industry Services partner, the second half of
2010 was a different game. Incentives were gone and interest
rates started to increase causing a net profit decline of 30%
over the last six months of the year for the average dealer.
Mr Rezek highlighted that despite Australian motor vehicle
sales for 2010 eclipsing the million mark for the third time
in history, dealerships experienced a decline in profitability
for new vehicle sales, due to leaner margins, a competitive
market, and higher overhead expenses
The report attributes a range of factors including the
government stimulus package ending, rising interest
rates, fewer tax incentives, lower levels of inventory and
tightening of expenses which produced declining growth
profit margins for new and used vehicles.
According to Mr Rezek, 2010 was a challenging period for the
automotive industry. Average dealers suffered with a profit
margin decline of 30% over the last six months, from a high
of 2.5% to around 1.8% for the most recent six months.
As Australian companies race to sanction and build their
conventional and unconventional LNG export facilities, there
are a number of game-changing trends that will impact future
supply and demand for Australian LNG resources, according
to Deloitte Adelaide’s Oil and Gas Leader, Mr Jason Handel.
“Overall, fossil fuels are likely to continue to be an important
source of energy for many years to come.
The 2011 Deloitte Oil & Gas Reality Check report indicates that
growth in the dynamic LNG industry will continue
to be driven by strong demand from China. For example, the
report shows that Chinese gas demand is likely to quadruple
from 80 billion cubic metres (bcm) a year in 2009 to 320 bcm
at the end of the current decade*.”
However, supply to China is likely to be increasingly
influenced by reserves in China as well as the USA. “China itself
has substantial unconventional gas reserves which, to date,
remain largely unexploited as a result of low permeability,
limited infrastructure and poor economics,” he said.
“A new pricing strategy introduced by the Chinese
government in June could promote development of China’s
reserves, and potentially reduce China’s future dependence
on LNG imports.”
“In the USA, the LNG market is also changing rapidly: shale gas
has become a game changer for the energy sector,” said Mr
Handel. “ The USA is now considered self sufficient in gas. Talk
of new LNG re-gasification terminals in North America has
been replaced by talk of liquefaction plants, which means that
US shale gas may find markets in Asia and compete against
other suppliers, including Australia.”
At the same time, Mr Handel notes that Asian national oil
companies (“NOCs”) are determined to acquire upstream
assets to mitigate their increasing dependence on imported
energy. “Korea National Oil Corporation (KNOC)’s recent
hostile acquisition of Dana Petroleum
is a good example of the lengths some NOCs are prepared to
go,” he said.
* Source: Keith Orchison, “Shell goes with the flow”, The
Australian, April 24, 2010 Page 13.
USA gas supplies may challenge Australian AP
dominance in gas market
VISIT WWW.DELOITTE.COM.AU FOR THE FULL REPORT.
CLICK HERE TO READ THE FULL REPORT
Deloitte Australia has been awarded the prestigious BRW Client
Choice Awards 2011 for Best Accountancy Firm (revenue over
Based on quantitative research into buyers of professional
services, the awards were conducted independently by Beaton
Consulting. Clients were asked to rate the firms’ performance
across a broad range of attributes such as value for money,
service and innovation over the last year.
Deloitte is delighted that the opinions of our clients determined
this award with over 20,000 buyers of professional services
participating in the research.
Deloitte wins prestigious
BRW Accountancy Firm
of the Year award
Follow Deloitte on Twitter - @DeloitteAdel
NATION | WORLD
VIEWS & REVIEWS
Any insider information?
Any insider information?
SPONSOR OF THE DAY
Links Archive March 31st 2011 April 4th 2011 Navigation Previous Page Next Page