Company news in brief

MTN to raise billions from asset salesMTN Group plans to raise more than R15 billion in asset sales over the next three years, Africa's biggest telecoms group said yesterday after reporting a massive jump in 2018 profit.MTN is in the middle of reviewing its presence in some markets alongside investments in e-commerce platforms as part of a plan to streamline the company into a focused operator in high-growth markets in the Middle East and Africa.As part of the review, the company has agreed to sell its minority stake in Botswana's Mascom for US$300 million. It sold it sole European unit in Cyprus last year.Headline EPS, the primary measure of profit that strips out certain one-off items, surged 85% to 337 cents in the year ended December.The bottom line is still not even half what MTN reported in 2015, a year before it agreed to pay a US$1.7 billion fine in Nigeria for missing a deadline to cut off unregistered SIM card users. – Nampa/ReutersVivo Energy profit rises on higher volumesAfrican fuel retailer Vivo Energy Plc reported a 2% rise in 2018 gross profit on higher volumes and forecast low to mid double-digit percentage volume growth for the current year even as it battles tough market conditions in Morocco.The company, which distributes and markets Shell-branded fuels and lubricants in Africa, said gross profit rose to US$624 million for the 12 months ended 31 December from US$614 million a year earlier.Vivo energy, a result of a partnership between energy trader Vitol Group and Africa-focused private equity firm Helios Investment, said volumes were 4% higher at 9 351 million litres of fuel.Gross cash unit margin for the year dipped 1% to US$74 per thousand litres, which Vivo Energy blamed on market conditions in Morocco. It also forecast gross cash unit margin to be in the high US$60s per thousand litres for 2019.The FTSE-250 company, which also has a secondary listing on the JSE, added that the core earnings contribution from the Moroccan retail unit was lower in 2018 than 2017, and that it expected the metric to fall even further this year. – Nampa/ReutersExxon Mobil sets plan to boost spendingExxon Mobil Corp plans to boost capital spending for several years, CEO Darren Woods said on Wednesday, and the largest US oil company's shares fell after he laid out a strategy to "lean in" while the rest of the industry cuts back.Exxon shares fell more than 1% after the company told analysts attending its annual investor meeting that it plans to lift spending by 10% or more for the next several years as rivals are sidelining equipment and capping spending to boost shareholder returns.Exxon's plans include a big bet on US shale, where output has surged in recent years, making the United States the world's largest oil producer.Capital spending will rise to US$33 billion to US$35 billion next year from US$30 billion this year and from US$23.1 billion in Woods' first year as CEO.Over the last five years, Exxon shares have posted a total return of negative 0.16%, lagging total returns of 32% at Chevron Corp and 54% at BP PLC over the same period, while the benchmark S&P 500 index has gained 48%, according to Refinitiv Eikon data. – Nampa/ReutersRusal posts US$17 mln Q4 net lossRussia's Rusal, the world's largest aluminium producer outside China, posted a fourth-quarter net loss yesterday, but reiterated its positive industry outlook following the lifting of US sanctions on the company in January.Rusal's adjusted net loss for the quarter of US$17 million, compared with a US$338 million profit in the previous quarter and a US$350 million profit in the final quarter of 2017.However, a lot has changed at the Hong Kong-listed company since the final quarter of last year, after the US Treasury lifted sanctions that had been imposed on Rusal in April 2018.The move meant investors no longer faced a deadline to divest from Rusal and from other companies in Russian tycoon Oleg Deripaska's empire. It sent Rusal's share price soaring.The aluminium producer is now preparing to restore previous contracts with clients and is also talking to new clients, its chief executive was cited by Interfax as saying on Monday. – Nampa/ReutersHuawei confirms lawsuit against USChinese telecoms equipment maker Huawei Technologies Co Ltd yesterday said it is suing the US government over a section of a defence bill passed into law last year that restricted its business in the United States.Huawei in a statement said it has filed a complaint in a US district court in Texas challenging its addition to the US National Defense Authorisation Act (NDAA). The firm claims the restrictions targeting Huawei are "unconstitutional".The move comes as Washington tries to persuade allies to ban Huawei from business alleging espionage risks. Huawei has repeatedly denied the claims. – Nampa/Reuters

Company news in brief

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Republikein 2025-11-04

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Company news in brief

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