• SA maintains credit rating despite economic headwinds 
• ‘Transformative year’: Cooper Energy rebounds to post $14m profit
• New entrepreneur role at Adelaide Uni
• Wage growth, consumer confidence in focus this week

SA maintains credit rating despite economic headwinds 

South Australia has retained its Aa1 credit rating despite pressures from rising inflation, higher interest rates and challenging global economic conditions.

An independent credit opinion released by international credit rating agency Moody’s affirmed the outlook for SA as Aa1 stable, its second-highest rating possible.

Moody’s expects the Malinauskas Government will achieve its target of a net operating surplus from 2022-23.

Moody’s said the 2022-23 State Budget “incorporates the implementation of the new government’s spending commitments which will be predominantly funded through reprioritisation of expenditure and sustain operating surpluses”, regarded as a credit positive.

Another international credit rating agency, Fitch, has reaffirmed SA’s credit rating as AA+/Stable, reinforcing Moody’s prediction that the state’s debt burden will remain lower than other states.

South Australian Treasurer Stephen Mullighan said: “These credit opinions confirm the Malinauskas Government’s commitment to prudent fiscal management and getting the state’s finances back on track.”

“Not only are we delivering on our election commitments, but we are returning the Budget to surplus, slowing the increase in debt and maintaining our credit rating,” he said in a statement.

“We are improving the budget position so we are on stronger footing to respond to future economic challenges.” 

‘Transformative year’: Cooper Energy rebounds to post $14m profit

Soaring gas prices has seen South Australia gas producer Cooper Energy turn around a net loss of $25.9m in FY21 to record a $14.4m profit in FY22.

The ASX-listed company this morning reported its net revenue increased 56 per cent last year to reach $205.4m, with production reaching a record 3.31 MMboe – up 26 per cent on FY21.

The energy producer also exceeded its FY22 guidance – posting an EBITDAX of $80.7m, above the guidance range of $70m to $78m.

Cooper Energy, which operates three gas fields and two gas plants supplying domestic gas into the south-east Australia gas market, attributed its financial result to higher spot gas prices and improved production from its Orbost Gas Processing Plant (OGPP) in Victoria, where the majority of the company’s gas is processed.

Cooper Energy managing director David Maxwell said increased supply to the east coast gas market also accounts for the “significant contrast” compared to FY21.

“FY22 was a transformative year for Cooper Energy,” he told the ASX this morning.

“We are positioned as a competitive integrated business operating our two integrated gas hubs, with the commensurate step change in cash generation for future growth.

“Becoming a gas plant operator following the refurbishment and commissioning of the Athena Gas Plant, and the acquisition of the OGPP (Orbost Gas Processing Plant), were key imperatives and enormous milestones for the company.

“All the elements of a successful gas business are now in place and the pathway for further sustained growth has been set.”

The company has forecasted a further increase in gas production of between 12 to 21 per cent in FY23.

New entrepreneur role at Adelaide Uni

Ortomi CEO Sam Messina. Photo: supplied

A final year student who has co-founded an electronics company has been appointed the University of Adelaide’s first “Chief Student Entrepreneur”.

Sam Messina, CEO of Ortomi and a final-year electrical and electronic engineering student, was appointed to the position earlier this month.

The University of Adelaide says it is first university in South Australia to appoint a Chief Student Entrepreneur to raise awareness of programs designed to support students with their innovation skills and “entrepreneurial mindset”.

Based at the university’s business incubator ThincLab, Messina works alongside Christian Alexandru to design and produce robot companions that are sold in over 13 countries.

“Christian and I have been involved in a number of different projects as part of the ThincLab ecosystem since 2020,” Messina said.

“We designed Ortomis as simple little companions to help with mental health issues such as loneliness and social anxiety. Since we started, sales have been growing rapidly and we are very excited for the future.”

University of Adelaide’s Professor Noel Lindsay, Dean of the Adelaide Business School and Pro Vice-Chancellor, Entrepreneurship, said entrepreneurship is a critical part of every student’s skillset that will enable them to make a positive contribution to society.

“Sam will provide advice to other students who are looking to work on their own businesses while completing their degrees at the University of Adelaide.”

Wage growth, consumer confidence in focus this week

The global economic outlook and the trajectory of interest rates will be in focus as a series of key indexes on wages, job vacancies and confidence in Australia are set to be released this week.

The weekly ANZ-Roy Morgan consumer confidence report, due on Tuesday, will highlight the potential impact on spending of increasing cost-of-living pressures.

The release of wages data and employment last week will likely spur further speculation about the Reserve Bank’s September cash rate decision.

NAB economists expect to see another 50-basis-point hike, with the tight labour market confirmed by ABS data signalling the need to return to higher interest rates fairly rapidly.

The Reserve Bank’s head of domestic markets, Jonathan Kearns, will on Wednesday deliver a speech on climate change risks in the financial system.

Later in the week, the ABS will release detailed job vacancy and labour force data, which will highlight the latest regional jobless rate after it hit a record low of 3.7 per cent in June.

Meanwhile, The Jackson Hole Economic Symposium will on Friday bring together US and international policymakers and academics to discuss key long-term economic issues, with interest rates and inflation likely to dominate the meeting.

Federal Reserve chair Jerome Powell will give the opening address.

-With AAP