Company news in brief
NAM expects bigger earnings
Locally-listed Namibia Asset Management (NAM) expects earnings per share (EPS) and headline earnings per share (HEPS) for the year ended 30 September 2023 to increase between 15% and 25% - between 1.04 and 1.73 cents per share – compared to the EPS (6.92c) and HEPS (6.92c) reported in the previous book-year.
Fund management earnings per share (FMEPS) are however expected to decrease between 1% and 10% - between 0.08c and 0.75c per share - compared to 7.52c in the previous financial year.
In a trading statement on the Namibian Stock Exchange (NSX), NAM said FMEPS is used by management to measure true operating financial performance. The indicators excludes the net mark-to-market impact of fair value gains and losses on investments held in marketable securities.
NAM is expected to release its 2023 financial results this week.
The company is listed on the Local Index of the NSX. It closed at 70c per share on Monday.
Glencore finally inks R130bn deal
Global commodities trader and miner Glencore has inked a US$6.93 billion (about R130 billion) deal for a 77% stake in Canada's Elk Valley Resources (EVR), the steel-making coal business of Teck Resources.
"We have bought a low-cost tier-1 operation in a world-class asset in one of the world's leading mining jurisdictions," Glencore's CEO Gary Nagle said in a media briefing yesterday.
Glencore expects the deal to close in the third quarter of 2024 and has been battling for months for the assets, with an earlier offer of a merger being rebuffed by Teck's shareholders. Ultimately, Glencore wants a standalone company containing its combined coal and carbon steel materials businesses.
Once concluded, EVR will then own the Elkview, Fording River, Greenhills and Line Creek mines in Southeast British Columbia and 46% of Neptune Terminals in North Vancouver. It produced 21.5 million tonnes of steel-making coal in 2022 and 17.3 million tonnes in the year to September 2023.
Shares in Glencore gained 4% to a high of R103.22, giving the group a total market capitalisation of about R1.3 trillion in yesterday’s morning trade. – Fin24
Transnet ratings downgrade review
Moody’s Investors Service has placed Transnet on review for a potential credit ratings downgrade due to concerns over liquidity and refinancing risks for the struggling state-owned freight, port and logistics group.
"Moody's views weakened liquidity as a governance-related risk. After the resignation of the company's former CEO and CFO in October, Transnet also remains without a permanent top management team, which further weakens governance, although the appointment processes for these two critical positions has commenced," the ratings agency said in a statement.
"Moody's understands the company is working on several new financing initiatives but believes it will become increasingly difficult to access new financing without government support."
Transnet is debt-distressed and unable to service its over R130 billion of debt from its own revenue. Around R7 billion of bonds issued under its domestic medium-term note programme fell due for repayment last week. – Fin24
Shoprite grows market share
Shoprite’s first-quarter group sales growth outpaced the selling price increases it passed on to consumers as South Africa’s largest retailer showed in an update that it continued to take market share from rivals.
At group level, the company grew sales 13.2% for the quarter ended September 2023.
The Group’s Supermarkets Non-RSA operating segment, trading from nine countries outside of South Africa including Namibia, increased sale of merchandise for the first quarter by double digits in constant currency and by 9.7% in its reporting currency, the rand.
Supermarkets Non-RSA continuing operations’ store growth was limited to a net of two new stores (one Shoprite and one LiquorShop, both of which are situated in Eswatini). The segment plans to open 10 stores during the 2024 financial year.
The Group’s core Supermarkets RSA segment, the majority of which is represented by Shoprite, Usave, Checkers, Checkers Hyper and LiquorShop increased sales for the first quarter by 13.3%. Internal selling price inflation for the first quarter measured 8.3%.
Market share for the 52 weeks ending September 2023 increased by 124 basis points versus the corresponding period last year, extending the period of uninterrupted market share gains in Shoprite’s core South African supermarket business to 55 months.
In terms of the cost of its day-to-day operations, as a result of ongoing electricity load-shedding, Shoprite confirmed the diesel expense to operate generators across its South African supermarket business during the first quarter amounted to R281 million.
The increase in diesel cost resulted in the business incurring an additional R90 million charge compared to the quarter ended September 2022.
Locally-listed Namibia Asset Management (NAM) expects earnings per share (EPS) and headline earnings per share (HEPS) for the year ended 30 September 2023 to increase between 15% and 25% - between 1.04 and 1.73 cents per share – compared to the EPS (6.92c) and HEPS (6.92c) reported in the previous book-year.
Fund management earnings per share (FMEPS) are however expected to decrease between 1% and 10% - between 0.08c and 0.75c per share - compared to 7.52c in the previous financial year.
In a trading statement on the Namibian Stock Exchange (NSX), NAM said FMEPS is used by management to measure true operating financial performance. The indicators excludes the net mark-to-market impact of fair value gains and losses on investments held in marketable securities.
NAM is expected to release its 2023 financial results this week.
The company is listed on the Local Index of the NSX. It closed at 70c per share on Monday.
Glencore finally inks R130bn deal
Global commodities trader and miner Glencore has inked a US$6.93 billion (about R130 billion) deal for a 77% stake in Canada's Elk Valley Resources (EVR), the steel-making coal business of Teck Resources.
"We have bought a low-cost tier-1 operation in a world-class asset in one of the world's leading mining jurisdictions," Glencore's CEO Gary Nagle said in a media briefing yesterday.
Glencore expects the deal to close in the third quarter of 2024 and has been battling for months for the assets, with an earlier offer of a merger being rebuffed by Teck's shareholders. Ultimately, Glencore wants a standalone company containing its combined coal and carbon steel materials businesses.
Once concluded, EVR will then own the Elkview, Fording River, Greenhills and Line Creek mines in Southeast British Columbia and 46% of Neptune Terminals in North Vancouver. It produced 21.5 million tonnes of steel-making coal in 2022 and 17.3 million tonnes in the year to September 2023.
Shares in Glencore gained 4% to a high of R103.22, giving the group a total market capitalisation of about R1.3 trillion in yesterday’s morning trade. – Fin24
Transnet ratings downgrade review
Moody’s Investors Service has placed Transnet on review for a potential credit ratings downgrade due to concerns over liquidity and refinancing risks for the struggling state-owned freight, port and logistics group.
"Moody's views weakened liquidity as a governance-related risk. After the resignation of the company's former CEO and CFO in October, Transnet also remains without a permanent top management team, which further weakens governance, although the appointment processes for these two critical positions has commenced," the ratings agency said in a statement.
"Moody's understands the company is working on several new financing initiatives but believes it will become increasingly difficult to access new financing without government support."
Transnet is debt-distressed and unable to service its over R130 billion of debt from its own revenue. Around R7 billion of bonds issued under its domestic medium-term note programme fell due for repayment last week. – Fin24
Shoprite grows market share
Shoprite’s first-quarter group sales growth outpaced the selling price increases it passed on to consumers as South Africa’s largest retailer showed in an update that it continued to take market share from rivals.
At group level, the company grew sales 13.2% for the quarter ended September 2023.
The Group’s Supermarkets Non-RSA operating segment, trading from nine countries outside of South Africa including Namibia, increased sale of merchandise for the first quarter by double digits in constant currency and by 9.7% in its reporting currency, the rand.
Supermarkets Non-RSA continuing operations’ store growth was limited to a net of two new stores (one Shoprite and one LiquorShop, both of which are situated in Eswatini). The segment plans to open 10 stores during the 2024 financial year.
The Group’s core Supermarkets RSA segment, the majority of which is represented by Shoprite, Usave, Checkers, Checkers Hyper and LiquorShop increased sales for the first quarter by 13.3%. Internal selling price inflation for the first quarter measured 8.3%.
Market share for the 52 weeks ending September 2023 increased by 124 basis points versus the corresponding period last year, extending the period of uninterrupted market share gains in Shoprite’s core South African supermarket business to 55 months.
In terms of the cost of its day-to-day operations, as a result of ongoing electricity load-shedding, Shoprite confirmed the diesel expense to operate generators across its South African supermarket business during the first quarter amounted to R281 million.
The increase in diesel cost resulted in the business incurring an additional R90 million charge compared to the quarter ended September 2022.
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