Tony Abbott’s Liberal-National Coalition won a landslide victory in the Australian federal election on Sept. 7, ending the center-left Labor Party’s eventful six-year rule.

Labor’s ambitious dream to build a fiber-to-the-home (FTTH) network to 93 percent of Australian homes and businesses apparently died with the Coalition’s Sept. 7 victory in Australia’s federal parliamentary election.

But that doesn’t spell the end for the National Broadband Network (NBN).

Labor’s FTTH plan is underway. But the Coalition intends to roll it back and deliver fiber only as far as each neighborhood–a fiber-to-the-node (FTTN) network–so the existing copper network would carry the signal over the last leg.

This could mean a renegotiation of the AUD11 billion deal that AE Portfolio Conservative Holding Telstra Corp Ltd’s (ASX: TLS, OTC: TTRAF, ADR: TLSYY) 1.4 million shareholders approved in October 2011 to lease the company’s infrastructure and migrate its traffic on to the NBN.

Under the Labor plan Telstra was going to be compensated several billion dollars to decommission its copper network. Although the Coalition has said it won’t pay anything to Telstra for use of its copper wire in its version of the NBN, incoming Communications Minister Malcolm Turnbull has indicated it won’t cut the compensation package negotiated over the course of two years by the Labor government.

The new Coalition government has promised fiber connections to about 22 percent of homes, with about 71 percent getting broadband via FTTN. And this plan can be completed two years earlier than the Labor plan.

At AUD29.5 billion the Coalition plan is cheaper, though it assumes Telstra won’t receive any additional money.

But the Coalition’s NBN will offer slower download speeds of 25 or more megabits per second (Mbps) by 2016. By 2019 90 percent of homes will have access to speeds of 50 Mbps, while homes in newly established neighborhoods–about 22 percent of households–will have fiber right to their doorsteps, allowing speeds of up to 100 Mbps.

From a technical standpoint, the Coalition’s plan will establish a digital divide: It’s possible that homes on one side of the street will have fiber connections while those on the other side will remain on copper.

At present most of the servers that connect to this fiber are much slower. It’s a bit like having a superfast freeway where you have a car that’s not fast enough to drive on it.

At the same time, however, appetite for bandwidth in Australia is growing at about 40 percent per year; five or 10 years Australia will need something on the order of a few hundred megabits to a gigabit to each home. And that’s more than a FTTN network can provide.

It’s hard to say exactly how the new government will proceed, Mr. Turnbull intends to conduct an audit of NBN Co to gauge its progress and evaluate the commitments it’s made.

Mr. Turnbull’s and the Coalition’s position is that Telstra agreed to turn off its copper network and therefore doesn’t want it anymore. The new government is happy to simply take it off Telstra’s hands because, to the telecom, it “has no economic value.”

Telstra CEO David Thodey, though he has said his company will engage constructively with the new Coalition government on how to help it deliver its version of the NBN, has ruled out settling for anything less than what was negotiated in the deal with Labor.

It’s possible the Coalition will give Telstra a bigger role in building its NBN, which is something Mr. Thodey would welcome. Under terms of the existing agreement Telstra will receive billions of dollars in disconnection and lease payments over the next decade as each home is taken off its copper network and linked to the now-in-doubt FTTH network.

Under the current agreement Telstra is paid approximately AUD1,500 per premises that’s disconnected from the copper service and transferred over to the NBN, and Telstra retained ownership of the copper line as part of the deal.

These payments are a key factor underpinning Telstra’s forecast that it will generate up to AUD3 billion of excess free cash flow by mid-2015, enough to fund acquisitions and/or a dividend increase.

At the same time, Telstra has in place what it refers to as a “natural hedge” against any delays in the NBN rollout through the operation of its high-margin copper network for a longer period.

Telstra will still play a fundamental role in the Coalition’s national broadband network, and it’s unlikely to be left in a worse position with the Coalition than it was in with Labor. Whether its position improves is also an open question.

But Mr. Thodey is certainly in a solid position from a negotiating standpoint. And that’s good for Telstra and its shareholders.

Telstra is a buy under USD4.60 on the Australian Securities Exchange (ASX) using the symbol TLS and on the US over-the-counter (OTC) market using the symbol TTRAF.

Telstra also trades on the US OTC market as a Level I, sponsored American Depositary Receipt (ADR). Telstra’s ADR is worth five ordinary, ASX-listed shares. Telstra’s ADR is a buy under USD23.

More Policy

Australia’s smaller telecommunications companies–including Conservative Holding M2 Telecommunications Group Ltd (ASX: MTU, OTC: MTCZF)–may benefit from being able to keep and build selective parts of the national broadband network.

But more broadly, the general shift to a separately owned wholesale telecommunications network and the more level competitive landscape it brings is driving M2 and its peers rather than any the Coalition may bring to the NBN’s specifications.

Incoming Prime Minister Tony Abbott has promised to make the repeal of Australia’s carbon tax and the Mineral Resource Rent Tax among the priority items on his agenda, with legislation dealing with the former already in the drafting process.

The removal of the carbon and mining taxes–if Mr. Abbott can get legislation through Australia’s Senate–would likely benefit many big companies. But the impact of such removal shouldn’t be overstated.

Despite the outcry from chief executives, few could directly attribute weaker results of late to either tax. Many of the worst-affected companies–such as airlines and buildings materials–are weak businesses anyway and unlikely to earn a recommendation from us.

For energy retailers–including Conservative Holding AGL Energy Ltd (ASX: AGK, OTC: AGLNF, ADR: AGLNY) and Aggressive Holding Origin Energy Ltd (ASX: ORG, OTC: OGFGF, ADR: OGFGY– the effect of removing carbon pricing is complex.

The value of coal-fired power plants–Loy Yang for AGL, the recently acquired Eraring for Origin–will rise. But the value of gas-fired plants and renewable assets may decline.

Repeal of the carbon tax is also unlikely to increase household disposable income much, though every little bit counts and estimates place annual savings on the average utility bill at about AUD200.

The removal of the mining tax is unlikely to generate much joy because its imposition created so little grief. Few miners are paying the tax due to lower prices and lots of offsets. Coal miners would love to be paying tax because that would mean they were earning profits; lower commodity prices, not taxes, have crunched earnings for most of the industry.

Although the Coalition’s bent is toward less rather than more regulation, Australia’s “Four Pillars”–including Conservative Holding Australia and New Zealand Banking Group Ltd (ASX: ANZ, OTC: ANEWF, ADR: ANZBY) and its peers Commonwealth Bank of Australia (ASX: CBA, OTC: CBAUF, ADR: CMWAY), National Australia Bank Ltd (ASX: NAB, OTC: NAUBF, ADR: NABZY) and Westpac Banking Corp (ASX: WBC, NYSE: WBK)–may have to endure a little heightened scrutiny.

The Coalition has promised a new inquiry into competition in the financial services sector along the lines of the 1997 Wallis Report, which recommended that the pillars be dismantled and the banks be made subject to the same merger competition tests as other businesses.

Renewed government activity isn’t likely to help the banks, but as large financial institutions they’re accustomed to being held in the public’s bad graces. The biggest variable for ANZ and the other three pillars remains the condition of the economy in Australian and Greater Asia.

Changes in health care policy could be more clearly favorable. The Labor government cut pathology funding, means-tested the private health insurance rebate and provided incentives to doctors to bulk bill patients. The Coalition government is unlikely to intervene in the market as much.

Potential winners include Australia’s private hospital operator and Conservative Holding Ramsay Health Care Ltd (ASX: RHC, OTC: RMSYF). Ramsay is one of this month’s Sector Spotlights, which we shine on the two Portfolio Holdings that represent the best buys right now for new money.

Other beneficiaries include pathology company Sonic Healthcare Ltd (ASX: SHL, OTC: SKHCF) and health insurance company NIB Holdings Ltd (ASX: NHF).

The Coalition will no doubt enjoy a honeymoon. But dreams of straight-higher rally during the three years before Australians go to the polls again are exactly that: dreams.

Confidence is an elusive concept, and Tony Abbott and company may enjoy the benefits of a return to trend growth for Australia.

But Australia’s relatively small and open economy means that external factors such as Chinese growth, commodity prices and the value of the Australian dollar will have much more determinative impact on underlying business conditions and the direction of share prices.

Our focus remains on buying high-quality companies when they’re trading at favorable prices and holding them for the long term.

Conservative Roundup

AGL Energy Ltd (ASX: AGK, OTC: AGLNF, ADR: AGLNY) reported statutory net profit after tax (NPAT) for fiscal 2013 of AUD388.7 million, an increase of 238.3 percent over fiscal 2012 due primarily to the successful integration of and a full-year contribution the Loy Yang power plant. Total revenue grew by 30.3 percent to AUD9.716 billion.

AGL’s core Merchant and Retail operations were solid, with the former posting 58.1 percent underlying profit growth, driven by Loy Yang, and the latter expanding by 6.8 percent, with both segments overcoming soft demand for energy and strong competition in AGL’s key markets.

Retail electricity sales were up 17.7 percent to AUD3.542 billion and retail gas sales were up 16.5 percent to AUD1.302 billion. Gross margin expanded by 8.8 percent on continued customer growth in New South Wales.

Underlying profit–statutory NPAT adjusted for one-time items and changes in the fair value of certain financial derivatives–was up 24.1 percent to AUD598.3 million.

Management declared a final dividend of AUD0.33 per share, up from AUD0.32 a year ago. The full-year dividend is AUD0.63 per share, up 4.9 percent compared to fiscal 2012.

Statutory earnings per share (EPS) were AUD0.707, a 197.1 percent increase, while underlying EPS ticked up 8.8 percent to AUD1.088. Underlying operating cash flow before interest and tax was up 64.1 percent to AUD1.232 billion.

The payout ratio for the period based on statutory EPS was 89.1 percent. Based on underlying EPS–a better measure of cash profit and management’s preferred metric for gauging the health of the underlying business–it was 57.9 percent.

Net debt as a percentage of total capitalization (net debt plus equity) inched up to 27.8 percent from 26.1 percent. AGL has a AUD600 million term loan maturing in July 2014, though management plans to refinance it before the due date.

AGL has AUD550 million in undrawn facilities and AUD281 million in cash on hand as of June 30, 2013. AGL also received 10 million free carbon permits on Sept. 2, 2013, to help offset the impact of Australia’s new carbon-pricing regime on its coal-fired fleet.

The survival of the carbon tax is now in question following the Coalition’s victory over Labor in the Sept. 7 Australian parliamentary election. Lowering or eliminating the levy would have a positive impact on AGL’s financial ratios, but the balance sheet is in good shape regardless.

Standard & Poor’s reaffirmed AGL’s BBB stable credit rating on June 21, 2013. And the funds from operations-to-interest coverage ratio is forecast by increase to approximately 4.0 times during fiscal 2014 from 3.8 times as of June 30, 2013.

Subsequent to AGL’s earnings announcement the Australian Competition and Consumer Commission (ACCC) approved its takeover of Australian Power and Gas Company Ltd (ASX: APK), as the deal is unlikely to substantially reduce competition in Victoria’s electricity and gas markets.

Upon completion the deal will leave AGL with an ownership stake in APG of more than 75 percent, giving it the right to appoint a majority of directors to APG’s board. It will also provide AGL the opportunity to expand its customer base at a decent price. AGL’s offer, which expires on Oct. 11, 2013, represents a 33 percent premium to APG’s July 12, 2013, closing price.

Management will provide earnings guidance for fiscal 2014 at its Oct. 23, 2013, annual general meeting.

AGL Energy is a buy under USD17.25 on the ASX using the symbol AGK and on the US over-the-counter (OTC) market, using the symbol AGLNF.

AGL also trades on the US OTC market as an American Depositary Receipt (ADR) under the symbol AGLNY. AGL’s ADR–which represents one ASX-listed ordinary share–is also a buy under USD17.25.

APA Group (ASX: APA, OTC: APAJF) reported a 27.4 percent increase in NPAT, excluding significant items, AUD179 million for fiscal 2013. Statutory NPAT, including significant items, was up 129 percent to AUD298.8 million.

Significant items made a net positive contribution of AUD120 million, reflecting primarily a gain on APA’s previously held interest in Hastings Diversified Utilities Fund (HDF) and reversal of some costs booked in relation to the sale of the Allgas business, partly offset by costs relating to the acquisition of HDF and fees charged to HDF by Hastings Funds Management.

Normalized earnings before interest tax, depreciation and amortization (EBITDA) increased by 24.6 percent to AUD667 million. This includes the nine months of earnings from the HDF assets and also reflects the expansion of the Roma Brisbane Pipeline and improved performance from APA’s investment portfolio.

Operating cash flow increased by 11.6 percent to AUD374.4 million, including an outflow of AUD58.3 million in fees paid by HDF prior to the completion of the acquisition.

APA declared a final distribution of AUD0.185 per security, bringing total distributions for the year to AUD0.355 per security, a 1.4 percent increase over fiscal 2012. Distributions continue to be funded out of operating cash flow, with this year’s total distribution payout ratio amounting to 68.2 percent of normalized operating cash flow.

The Australian Competition and Consumer Commission confirmed it won’t oppose APA’s proposed all-share merger with Envestra Ltd (ASX: ENV, OTC: EVSRF). APA currently owns 33 percent of Envestra and manages and operates Envestra’s gas distribution networks and pipelines under a long-term operating and management agreement.

On Aug. 5, 2013, Envestra rejected APA’s offer, though APA management said it “remains open to engagement with Envestra in respect of its proposal.”

On July 16 APA offered 0.1678 of one new APA share for each Envestra share. The bid equated to AUD1.07 a share, based on APA’s close on July 15. The offer represented a 6.3 percent premium to the 20-day average of Envestra’s stock price leading up to July 16, lower than the average premium of 16 percent for gas distribution deals since July 2008.

APA closed on the Australian Securities Exchange (ASX) at AUD5.80 on Sept. 12, valuing the present offer at approximately AUD0.97 per share. Envestra closed at AUD1.09, suggesting the market sees an improved offer on the horizon.

APA can clearly stand to boost its offer by at least 10 percent, particularly in light of the significant growth forecast for Envestra.

The latter, which owns 14,000 miles of pipelines that supply gas to about 1.2 million customers mostly in Victoria and South Australia, is expected to see profit growth of 66 percent by 2014.

APA Group is a buy under USD6.50 on the ASX using the symbol APA and on the US over-the-counter (OTC) market using the symbol APAJF.

Envestra, meanwhile, reported NPAT growth during fiscal 2013 of 46 percent to AUD107.8 million. Revenue for the period was up 8 percent to AUD507.5 million, while EBITDA grew by 8 percent to AUD360.3 million and cash flow from operations surged 36 percent to AUD233.8 million.

The company also announced that fiscal 2014 dividends would be increased to AUD0.064 per share, up 8 percent from AUD0.059 for fiscal 2013. Management guided to NPAT growth of nearly 30 percent for fiscal 2014 to AUD140 million, driven by increases in regulated rates that took effect on July 1, 2013, and further anticipated reductions in finance costs.

Management noted that management of operating costs and a 14 percent reduction in finance costs drove profitability. Revenue growth largely reflected the annual rate adjustments approved by the Australian Energy Regulator, with volumes to residential and smaller commercial customers (from which most revenue is derived) up 2 percent.

Operating costs were up by AUD11.7 million, though AUD9.6 million of the increase was due to expenditures related to Australia’s carbon tax. These permit costs are fully recoverable through haulage tariffs.

Net finance costs were down to AUD147.9 million due mainly to lower floating interest rates on un-hedged debt and lower rates on new fixed interest rate swaps. Net debt as a percentage of market capitalization was 54 percent, down from 64 percent a year ago.

The company boosted its capital expenditure program by 23 percent in 2012-13 to AUD217.4 million, largely on network extensions and upgrades to the networks. Management expects to spend AUD270 million in fiscal 2014.

A total of 209 kilometers of mains were laid, primarily in new subdivisions, and 417 kilometers of old mains were replaced. Envestra now has almost 24,000 kilometers of gas mains and pipelines around Australia and delivers gas to almost 1.2 million consumers.

Total dividends paid in 2012-13 were AUD93.7 million. Distributable cash flow available was AUD205, leaving a payout ratio of 45.7 percent.

Envestra, which closed at AUD1.09 on the Australian Securities Exchange (ASX) on Sept. 12, is effectively a hold.

Cardno Ltd (ASX: CDD, OTC: COLDF) posted a company-record NPAT of AUD77.6 million, 4.7 percent above fiscal 2012. Revenue grew by 23.8 percent to AUD1.19 billion due to contributions of new merger partners.

Cash flow from operations was up 31.8 percent to AUD95.7 million.

Organic growth during the second half of the fiscal year slowed to 1 percent, down from 7 percent for the first six months of fiscal 2013.

Managing Director Andrew Buckley attributed the slowdown to “lack of confidence in the Australian market place, a slower-than-expected US economy and reduced activity on the Gulf oil spill project.”

Cardno declared a final divided of AUD0.18 per share, in line with last year, as the full-year dividend came in flat too at AUD0.36. The payout ratio for the year based on earnings per share was 65.3 percent.

Despite the second-half slowdown Cardno posted its ninth consecutive year of record profit, a demonstration of the company’s effective acquisition-led growth strategy.

Mr. Buckley noted that Cardno is “cautiously optimistic about the potential offered by a recovering United States economy” while also observing that management is “aware that the Australian economy faces considerable challenges and Cardno is not immune to shocks and difficulties across our core markets.”

Cardno’s balance sheet remains strong, with AUD90.5 million of cash and a net debt-to-equity ratio of 23.9 percent as of June 30, 2013. Work in hand was AUD710 million at fiscal year’s end, up from AUD671 million as of June 30, 2012.

Cardno, which continues to grow its underlying business amid challenging conditions, remains a buy under USD8.05.

M2 Telecommunications Group Ltd (ASX: MTU, OTC: MTCZF) announced a 73 percent increase in fiscal 2013 revenue to AUD681 million, as EBITDA was up 80 percent to AUD108.1 million. Excluding costs associated with the Dodo and Eftel acquisitions EBITDA grew by 83 percent to AUD119.1 million.

NPAT increased 33 percent to AUD43.8 million, while earnings per share were up 6 percent to AUD0.274 and underlying EPS grew by 22 percent to AUD0.363.

Management declared a final dividend of AUD0.10 per share, up from AUD0.09 a year ago, as the full-year dividend was up 13.2 percent to AUD0.20. The payout ratio based on EPS was 73 percent; based on underlying EPS it was 55.1 percent.

Management also announced a shift in strategy, with organic rather than acquisition-led growth now the company’s main focus.

The completion of the integration of the game-changing Primus acquisition–including the finalization of its network optimization plan and reducing costs by aggregating backhaul and transit services–as well as the re-launch of its Commander provide a solid foundation for M2 to continue growing earnings and dividends at a solid clip.

M2 traded sharply lower immediately after the earnings announcement, as the market likely reacted to fiscal 2014 guidance that would see revenue growth of 47 percent, EBITDA growth of 48 percent and underlying NPAT growth of 48 percent.

M2 Telecommunications is now a buy below USD5.85 on the ASX using the symbol MTU and on the US OTC market using the symbol MTCZF.

Please note that results for Conservative Holding Ramsay Health Care Ltd (ASX: RHC, OTC: RMSUF) are discussed in one of this month’s two Sector Spotlight features.

Ramsay, which provides defensive growth and income, announced a 20.3 percent increase to its final dividend when it reported fiscal 2013 results in late August.

Ramsay Health Care is now a buy under USD38.

We discuss results for SMS Management & Technology Ltd (ASX: SMX, OTC: SMSUF), which declared a final dividend of AUD0.12 per share, down 29.4 percent from AUD0.17 a year ago, in this month’s Dividend Watch List.

That brought the fiscal 2013 full-year dividend to AUD0.255, 16.4 percent lower than the AUD0.305 paid for fiscal 2012. We’re moving SMS Management & Technology, which remains a buy under USD6.50, to the Aggressive Holdings.

Aggressive Roundup

GrainCorp Ltd’s (ASX: GNC, OTC: GRCLF) takeover by US agribusiness giant Archer Daniels Midland Co (NYSE: ADM) is also the subject of some post-election discussion, as there appears to be some tension within the ranks of the Coalition over the wisdom of ceding ownership of a key industry player to a non-Australian entity.

The proposed acquisition is now widely viewed by business leaders as a test of Australia’s openness to foreign investment. Business-friendly Liberal Party members favor the deal.

In the days leading up to the Sept. 7 election National Party members stressed “more stringent scrutiny of the national interest test” by the Foreign Investment Review Board (FIRB). The Nationals also want ADM to give written guarantees of open port access continuing in the long term, something the US-based giant has thus far resisted.

Others simply oppose foreign investment in Australian farmland.

National leader Warren Truss, who will be Deputy Prime Minister under Liberal leader Tony Abbott, has expressed concern but has distanced his party from any decision the National-Liberal Coalition government might make on the AUD3.4 billion deal.

Mr. Truss stressed that the decision ultimately lies with the Australian Treasurer and the FIRB. Other members of the party, including one who’s in line to become Agriculture Minister, favors blocking the deal no matter the official decision.

ADM will soon resubmit to the FIRB the application it withdrew when the election was called.

Mr. Truss has noted “real questions of whether we would therefore lose control over our own destiny, our own capacity to make decisions about whether we want to expand our grain industry, whether we want to be the food bowl of Asia.”

ADM has offered AUD13.20 a share for GrainCorp. The offer includes AUD12.20 per share in cash and permitted dividends of AUD1 per share; the dividends are expected to be fully franked, providing additional value of up to AUD0.43 per share for those shareholders who can capture the full benefit from franking credits. GrainCorp closed at AUD12.39 on the ASX on Sept. 12.

The Coalition has committed to an overhaul of the Foreign Acquisitions and Takeover Act to lower the threshold for FIRB approval of agricultural land and agribusiness acquisitions and to create a register of foreign ownership of agricultural land.

John Snook, chairman of the western graingrowers committee of the Pastoralists and Graziers Association, has urged the Coalition to approve the ADM takeover, arguing that it would make the grain supply chain in Australia “relevant again” and encourage investment and competition in the grain-handling market.

Mr. Snook said moves to deregulate the wheat market since 2008, when the Australian Wheat Board was stripped of its monopoly, allowed competition in wheat marketing and resulted in an average AUD24 per metric ton in additional revenue for Australian wheat farmers.

It’s likely that the senior partner in the National-Liberal Coalition–the Liberal Party–will prevail on this issue. GrainCorp remains a hold pending completion of the acquisition by ADM.

Spark Infrastructure Group (ASX: SKI, OTC: SFDPF) posted a 3.4 percent increase in profit before interest and tax to AUD146.7 million based on solid operational results from SA Power Networks and the Victoria Power Networks assets CitiPower and Powercor.

Stand-alone operating cash flow was up 4.1 percent to AUD83.3 million, while statutory NPAT declined by 14.3 percent to AUD76.

Management declared an interim distribution of AUD0.055 per security, consistent with full-year distribution guidance of AUD0.11. This represents a 4.8 percent increase over the dividend paid for 2012. Management also reaffirmed guidance for 2014 and 2015 dividend growth of 3 percent to 5 percent.

The stand-alone payout ratio for the period was 87.6 percent.

Total regulated revenue was up 8.2 percent to AUD871.8 million, with aggregated EBITDA up 10.7 percent to AUD702.9 million.

The regulated asset base of the asset companies grew by 3.1 percent during the six months ended June 30, 2013, bringing the estimated total RAB to AUD8.3 billion. Spark’s share is AUD4.1 billion. On a rolling 12-month basis RAB growth was 8.7 percent, following the 9.7 percent growth for the full year to Dec. 31, 2012.

Growth in the RAB coupled with the gradual reduction of net debt-to-RAB drives growth in Spark’s distribution. SA Power Networks, CitiPower and Powercor have also delivered solid operating results.

Despite flat volumes, management expects to see revenue growth based on already approved rate increases for the second half of the current regulatory period.

Spark refinanced its corporate facilities in March 2013 on favorable terms and paid down another AUD30 million of debt during the period. The balance sheet remains solid, capable of supporting growth at the asset companies and flexible enough to deal with any changes in business conditions.

Spark Infrastructure is a buy on the ASX using the symbol SKI and on the US OTC market using the symbol SFDPF under USD1.80.

Please note that results for Aggressive Holding Amalgamated Holdings Ltd (ASX: AHD, OTC: None) are discussed in the other September 2013 Sector Spotlight feature.

Amalgamated, which raised its distribution by 8 percent, is a great place for new money this month, provided your broker avails you access to the Australian Securities Exchange.

Amalgamated Holdings is now a buy under USD8.

Results for Ausdrill Ltd (ASX: ASL, OTC: AUSDF), BHP Billiton Ltd (ASX: BHP, NYSE: BHP), Oil Search Ltd (ASX: OSH, OTC: OISHF, ADR: OISHY), Origin Energy Ltd (ASX: ORG, OTC: OGFGF, ADR: OGFGY) and Woodside Petroleum Ltd (ASX: WPL, OTC: WOPEF, ADR: WOPEY) are addressed in this month’s In Focus feature on the present and future of Australia’s resource economy.