CEO in energy blast
BRICKWORKS has slammed governments across the country for failing to address Australia’s energy crisis, warning that rising gas and electricity prices will add $20 million to manufacturing costs every year by 2019.
Brickworks chief Lindsay Partridge’s criticism comes amid an ongoing rift in Canberra on energy policy and a fresh warning from the Australian Competition and Consumer Commission that gas export restrictions may be necessary to reduce prices.
“While the company has taken a proactive approach to address its challenges, the same cannot be said about governments across the country,” Mr Partridge said.
“Due to a decade of ineffective or non-existent policy and leadership, Australian manufacturers continue to experience rapidly increasing energy prices and unreliable supply.”
Mr Partridge said energy prices represented almost 20 per cent of manufacturing costs for its Austral Bricks division and that any increase would have a significant impact on margins.
“In total, gas and electricity
price increases will add around $20 million per annum to Brickworks’ manufacturing costs by 2019, on a business as usual basis.”
It came as Brickworks, Australia’s largest brickmaker, posted a full-year profit of $186.2 million, more than double last year’s result, driven by land sales and investment earnings. Earnings from investments increased 73 per cent to $103.1 million.
Brickworks owns 42.7 per cent of investment group Washington H Soul Pattinson, which in turn owns 44.3 per cent of the Brickworks.
Soul Pattinson yesterday posted a 123 per cent jump in net profit to $333.6 million. Brickworks said it remained positive about the short to medium outlook. It declared a fully franked final dividend of 34¢, up 2¢ from a year ago. Shares dipped 23¢ to $13.75.