Company news in brief

Vodacom, Telkom welcome ECA bill withdrawal

South African mobile network operators Vodacom and Telkom on Wednesday welcomed a government decision to withdraw a bill, which proposed taking back licensed spectrum from operators and forcing them to share a national network.

On Tuesday the minister of communications, Stella Ndabeni-Abrahams, withdrew the Electronic Communications Amendment (ECA) Bill, which was put before parliament in October 2018, to allow for further consultations and to align it with a drive towards a more digital economy.

The move ends uncertainty over a policy which has been criticised by industry, with the proposed Wireless Open Access Network (WOAN) seen to have negative consequences after the government suggested mobile operators would not get new frequencies and needed to hand back what they had.

Vodacom has proposed an alternative hybrid model- comprising a competitive WOAN with the opportunity for current operators to access spectrum.

Telkom also welcomed the withdrawal, saying by email: "We think this is an opportunity for government to engage with the sector and agree on a set of priorities to inspire investments that will promote growth and effective competition." – Nampa/Reuters

Nissan agrees JV to build Algerian car assembly plant

Japan's second-largest automaker Nissan Motor Co has signed a joint venture agreement with an Algerian private partner to build a car assembly plant at a cost of US$160 million, the company said on Wednesday.

The plant, near the western city of Oran, is due to start production in the first half of 2020 with a capacity of 63 500 vehicles per year, Peyman Kargar, Nissan's senior vice president and chairman of operations in Africa, Middle East and India, said at a signing ceremony in Algiers.

Nissan's partner, Hasnaoui Group, will hold a majority stake in the project, which is expected to create 1 800 jobs.

Algeria has banned car imports as part of an attempt to cut spending due to lower oil and gas earnings, the main source of state finances.

The North African country, an OPEC member, has been trying to attract foreign investment and develop the non-energy sector, which accounts for just 6% of total export revenues. – Nampa/Reuters

Egypt plugs hub status as Shell, Eni, Exxon win energy concessions

Royal Dutch Shell, Eni, BP and Exxon Mobil were among the winners in one of Egypt's largest ever oil and gas exploration tenders on Tuesday, as the country looks to sustain an investment upswing spurred by major discoveries.

The awards marked Exxon Mobil's entry into gas exploration in Egypt, while Shell was handed the most concessions, three for oil and two for gas, at an annual petroleum show that Egypt has used to promote itself as a hub for gas production and trading in the Eastern Mediterranean.

Egypt expects investments of at least US$750 million to US$800 million in the first stage of exploration in the total of 12 concessions announced, petroleum minister Tarek El Molla said.

Executives at the forum, which was attended by the CEOs of companies including BP and Shell, said Egypt's advantages as a hub include well-developed infrastructure, established industry expertise, strong local demand, and the country's strategic location between Europe and Asia, allowing it to send gas west or east depending on markets.

They are also encouraged by Europe's desire to diversify gas supplies and find alternative suppliers to Russia, and to reduce carbon emissions. – Nampa/Reuters

Barclays has spent up to 200 mln pounds on Brexit

Barclays has spent 100 to 200 million pounds (US$129-258 million) moving operations and staff out of Britain to prepare for Brexit, its UK chairman Gerry Grimstone said on Wednesday as bank bosses detailed the costs involved.

International banks have been setting up subsidiaries across the European Union since Britain voted to leave the bloc in 2016 to ensure they can continue to serve clients if their operations in London lose the rights to do so from March 29.

Barclays has moved its European headquarters and almost 200 billion euros in assets to Dublin and last year began shifting 40 to 50 investment banking jobs to Frankfurt from London.

Grimstone detailed Barclays' costs after Bank of America vice chairman Anne Finucane told a banking conference in Dublin that her bank had spent US$400 million on its Brexit preparations.

Morgan Stanley's head of EMEA, Clare Woodman, declined to say how much the bank had spent on its moves to Paris and Frankfurt. – Nampa/Reuters

Barrick exceeds adjusted profit estimates

Gold Corp, the world's largest publicly traded bullion producer, reported a better-than-expected adjusted quarterly profit on Wednesday due in part to cost cuts that helped offset a dip in gold prices and production.

Barrick has been moving to cut costs and said it was able to reduce administration expenses to US$212 million in 2018, far below the level forecast.

Still, the company, which closed on its US$6.1 billion buyout of rival Randgold Resources in early January, lost a net US$1.2 billion in the fourth quarter, or US$1.02 per share, compared to a net loss of US$314 million, or 27 cents, a year earlier.

Gold production fell about 6% to 1.3 million ounces during the fourth quarter through December 31. Copper output rose about 10% to 109 million ounces. Production costs for both metals rose during the quarter from a year earlier.

Barrick said it expects to produce 5.1 million to 5.6 million ounces of gold in 2019, in what would be an increase of at least 13% from 2018 levels. – Nampa/Reuters