Company news in brief

Clicks CEO to retire, insider as successor

South Africa health and beauty retailer Clicks Group said on Friday its chief executive officer David Kneale was retiring and will be succeeded by insider Vikesh Ramsunder.

Kneale, 63, will remain in his current role until Jan.1 and thereafter take up the role of group strategic advisor until 31 August 2019, Clicks said in a statement.

"David ... is an exceptional leader who has spearheaded the strong growth in the company's core markets. Under his leadership the group has delivered superior returns to shareholders and seen the market capitalisation grow to R50 billion," Clicks chairman David Nurek said.

The succession comes as the retailer has forecast earnings growth of between 12% and 17% in the full-year to August.

Clicks is investing R700 million into new stores, infrastructure and information technology this year, Kneale said in April. – Nampa/Reuters

Shell to supply ‘Chinese’ power plant

Royal Dutch Shell Plc has won a long-term contract to provide liquefied natural gas to a Chinese company's 441 megawatt power plant under construction in Colon, Panama, advisors on the deal said.

The US$900 million power project, being built by Sinolam LNG affiliate Sinolam Smarter Energy LNG Power Co, expects to begin taking deliveries of the super-cooled natural gas in 2020.

The deal with a Shell trading unit comes as a trade dispute between the United States and China has put global LNG exports in the spotlight. Last week, China imposed tariffs on US$60 billion of US goods, including a 10% tax on LNG imports effective today, in response to the US slapping tariffs on some US$200 billion of Chinese goods.

In the 12 months to June, China was the second largest buyer of US LNG, while Shell was the largest US LNG seller, according to research published by energy consultancy Wood Mackenzie.

After years of slumping prices, in which oil and gas companies slashed costs and project investments, the energy industry is coming out of crisis. – Nampa/Reuters

Exxon, Chevron to join climate initiative

Exxon Mobil, Chevron and Occidental Petroleum are joining a group of international oil and gas giants in an initiative aimed at curbing carbon emissions in the sector, they said in a statement.

The move marks a U-turn for Exxon Mobil and Chevron, the top two US oil and gas producers which had resisted joining the Oil and Gas Climate Initiative (OGCI) after its launch in 2016.

The OGCI currently comprises 10 firms including BP, Royal Dutch Shell, France's Total as well as national oil companies of China, Mexico, Brazil and Saudi Arabia. Together with the new US members, the group will account for around 30% of global oil and gas production.

The OGCI last year created a US$1 billion fund to develop technologies to reduce emissions of greenhouse gases in the sector as the world aims to shift towards a low-carbon economy.

Exxon in recent years came under fire from investors and faced lawsuits over its climate policies and disclosures. – Nampa/Reuters

Wells Fargo to cut up to 26 500 jobs

Wells Fargo announced plans to cut five to 10% of its workforce, a move that would affect up to 26 500 jobs based on current headcount.

The bank, which has struggled to regain its footing following a series of scandals, said the job cuts and attrition would make the company more efficient at a time when more customers are banking on digital platforms.

Large banks have been closing branches amid the increasing shift to online banking. In July, Wells Fargo, which is a major player in mortgages in the US where most of its business is based, said it planned to close 300 offices in 2018, in addition to divestitures of 52 branches in four Midwestern states.

In the second quarter, the bank experienced a 5% drop in teller and ATM transactions, while digital sessions increased 17% from the year-ago period, executives said in July.

Wells Fargo also has been stymied by a series of scandals, especially revelations in 2016 that the company opened millions of phony deposit accounts and lines of credit without clients' knowledge as part of high-pressure retail sales tactics. – Nampa/AFP

Danish cannabis IPO boosted by investor interest

Danish cannabis firm StenoCare is preparing to list shares in Copenhagen next month, the first in Europe to launch an initial public offering (IPO) to take advantage of a surge in investor interest.

Denmark is one of several European countries, which also include Germany, Britain, the Czech Republic and Italy, who have allowed the prescription of medicinal cannabis oil.

Denmark, which legalised the medicinal use of cannabis from Jan. 1 this year, is also one of the few European nations to legalise its local production as well.

StenoCare, the first Danish company to get permission to import, produce and sell cannabis oil in Denmark, says it will raise money to launch its own production facility, allowing it to serve its local market and export to other European markets.

The company said the IPO would be the first of its kind in Europe. – Nampa/Reuters