COMPANY NEWS IN BRIEF

Sasol revises emission target



Chemicals and energy group Sasol said while recent media reports have suggested a revision of its emission target to a range, this was only an example of the complexity it faces in its transition to lower greenhouse gas (GHG) emissions. "Sasol remains committed to a sustainable energy transition and work continues to refine our strategic direction, which includes our GHG emission roadmaps to 2030 and beyond," it said. "The group target of a 30% reduction by 2030 remains. However, we are in the process of refining our pathways towards achieving this target to ensure that we remain agile, mitigate potential risks and also respond to new emerging opportunities, given the changing global landscape and energy security needs." These refinements may introduce shifts in feedstock, energy and products to support a pathway towards being more sustainable. "To this end, we are prioritising value creation opportunities to enable a balanced approach across people, planet and profit considerations."

-FIN24-



Afrocentric headline earning climbs 50%

JSE-listed investment healthcare company AfroCentric reported that its headline earnings climbed more than 50% in its year to end-June, though after-tax profit slumped, and it has not declared a dividend as it aligns itself to the year-end of new parent Sanlam, or to end-December. This means that its next dividend will only be paid in May, which will be based on the 2024 calendar year results.

-FIN24-



Ascendis barely makes profit

Healthcare-focused Ascendis reported on Tuesday that it eked out profit at both a headline and operating profit level in its year to end-June. But as it's still facing a liquidity crunch - due to factors including a legal battle as it looked to delist - it says it will consider tapping shareholders for acquisitions. The healthcare firm, valued at about R440 million on the JSE, reported headline earnings of R6.8 million to end-June, from a loss of about R240 million, saying this was a testament to turnaround efforts that have included putting a subsidiary into business rescue amid a dispute with SARS. Group revenue fell 4% to R1.47 billion, but it did improve its margins a little, and its operating loss improved to a "marginal" operating profit of R46.4 million. The group also indicated that following its proposed delisting fell it may tap shareholders in order to make acquisitions, having previously said it didn't have the size to justify staying public.

-FIN24-



Cathy Pacific grounds A350s

Hong Kong's Cathay Pacific Airways is inspecting all of its Airbus A350 jets after the in-flight failure of an engine part on Monday, but other airlines have not yet been issued instructions to examine similar engines, carriers said. Cathay Pacific cancelled 24 return flights through the end of Wednesday to give it time to inspect its fleet of 48 Rolls-Royce powered A350s after a part failed on one of its A350-1000 widebody planes minutes after take-off from Hong Kong. Data from flight tracking service FlightRadar24 showed other major operators of the A350-1000 and the smaller, more popular A350-900 appeared to be flying their aircraft normally on Tuesday. Tokyo-based Japan Airlines (JAL), which has five A350-1000s that are all less than a year old, said it had asked Rolls-Royce for more information and had not stopped A350 flights in the meantime. "If the engine manufacturer takes any further action, we will respond accordingly," a JAL spokesperson said. Rolls-Royce had not yet issued a directive to airlines regarding possible inspections, according to an industry source who was not authorised to speak publicly about the matter.

-Reuters-



South Africa's Woolworths reports 16.8% drop in FY profit as shoppers spend less

South African upmarket fashion and food retailer Woolworths reported a decline in full-year headline earnings on Wednesday, as higher living costs continue to weigh on discretionary spend.

Woolworths reported headline earnings per share (HEPS) for continuing operations of 352.3 cents, down 16.8% on a comparable 52 weeks ended June 25.

Including Australian department store David Jones' contribution in the prior year before being sold and on a 53-week period to June 30, HEPS fell by 29.2% to 364.2 cents.

The retailer also booked a 609 million rand ($33.9 million)non-cash impairment of goodwill of its Australian men's fashion brand Politix. However, it said that this only impacted the EPS line and not HEPS.

Group turnover and concession sales for continuing operations rose by 4.3% to 76.4 billion rand, with turnover at its South African fashion, beauty and home business inching down by 0.4% while food business sales grew 9%, further buoyed by the inclusion of the Absolute Pets acquisitions.

On a non-comparable basis and from total operations, group turnover and sales fell by 16.4%.

Woolworths, which also operates in Australia and New Zealand via its Country Road fashion business, declared a final divided of 117.5 cents per share, down 23.9%.

-REUTERS-



Ethiopian Airlines says it halts Eritrea flights after account frozen

Ethiopian Airlines said on Tuesday it had suspended flights to neighbouring Eritrea because its bank account there was frozen.

The carrier's CEO Mesfin Tasew told a news conference that the Eritrean Civil Aviation Authority had blocked money transfers from Ethiopian Airlines' bank account in the Eritrean capital city Asmara.

Eritrea had previously said it would suspend all Ethiopian Airlines flights at the end of this month.

Flights from Ethiopia to Eritrea had resumed in 2018 after two decades, following a peace deal and resumption of diplomatic relations between the two neighbours that earned Ethiopia's Prime Minister Abiy Ahmed a Nobel peace prize a year later.

"We couldn't continue in such situation and we have decided to suspend the flight as of today," Mesfin said.

In a statement late on Monday, Ethiopian Airlines had said it would try to rebook affected passengers on other airlines at no additional cost or offer refunds.

Ethiopian is ranked the largest airline in Africa by revenue and profit by the International Air Transport Association.

Five diplomats told Reuters the suspension of flights signalled that relations between Asmara and Addis had soured significantly, but the risk of conflict was unlikely for now.

The two countries severed ties in 1998 when a two-year war started over their disputed border.

Eritrea fought alongside Ethiopia in a war that erupted in November 2020 against regional forces from Ethiopia's Tigray region, but relations soured once again after Asmara was excluded from the peace talks that ended that conflict two years later, and because some of its troops remain in Tigray.

-REUTERS-