COMPANY NEWS IN BRIEF
Anglo aims to ship iron ore with zero emissionsAnglo American, iron ore miner Tata Steel and others in a new consortium will be finding ways to reduce emissions in the shipping of iron ore.
Freeport Saldanha - which represents the Saldanha Bay Industrial Development Zone - is also part of the consortium, along with shipping firms CMB and VUKA Marine and energy supplier Engie. The consortium is convened by the international nonprofit Global Maritime Forum.
The consortium will, over the next 12 months, conduct a concept study into how to achieve zero emissions in the shipping of iron ore from South Africa to Europe – essentially developing a "green corridor".
"The new initiative came about because of a shared ambition to decarbonise shipping and a common interest to assess a potential green corridor for shipping of iron ore from South Africa to Europe across the partners," said Marieke Beckmann of the Global Maritime Forum.
Maritime green corridors are recognised as an important tool to help industry and governments decarbonise the sector, the Global Maritime Forum said in a statement.
Shipping accounts for roughly 3% of global greenhouse gas emissions.
Beckmann said that the work builds on a previous study by the Global Maritime Forum that identified opportunities for South Africa to establish itself as a "key player" in the transition to renewable energy and in zero-emission shipping. "The new initiative will build on this to develop an initial concept of how the corridor could be set up," Beckmann reiterated.
Among the solutions being considered is the use of green fuel supplies to power the ships. "The fuels we will be looking at will be hydrogen-based fuels, for example, ammonia; however, this is yet to be concluded as part of the study," said Beckmann.-Fin24
Northam withholds dividend
Despite a surge in interim earnings, Northam Platinum Holdings has opted not to declare a dividend as it builds its arsenal for growth aspirations.
"Northam remains at a critical juncture in pursuance of the group’s growth strategy, with various potential alternative outcomes that remain to be determined," the company said, explaining why the board decided not to declare a dividend for the half year to end-December.
The decision to withhold returns is despite a strong half-year performance. The group reported a 44% jump in sales revenue to R20 billion, a 55% increase in operating profit to R9 billion and a 67% growth in headline earnings per share to R16.
Northam's results were buoyed by a strong operational performance and increased production. Operating costs were however 27% higher for the period under review.
Northam, which already holds almost 35% in Royal Bafokeng Platinum, has extended an offer to buy out all shareholders – including rival bidder Implats.
The competition between Northam and Implats for a controlling share in RBPlat has proved intense and protracted. Implats - which first moved to acquire a controlling share in late 2021 - has indicated that continued delays in closing its competing offer to RBPlat shareholders may force it to walk away from the deal.-Fin24
Thungela slumps despite bumper dividend
Coal miner Thungela has declared a final cash dividend of R40 per share for its 2022 year, bringing its total dividend for the year to R100 per share, paying more than its own dividend policy required as it cashed in on record prices.
The coal miner reported a three-fold increase in adjusted earnings before interest, taxes, depreciation, and amortisation to R29.5 billion for its year to end-December, with net profit rising a similar amount to R18.2 billion.
The total shareholder returns for the year equate to R13.8 billion or 76% of adjusted operating cash flow for the year – well ahead of Thungela's policy to return 30% of adjusted free cash flow.
Thungela, which was spun out of Anglo American in mid-2021, said the results were in spite of railing challenges which caused the company to lose 3 million tonnes in export saleable production volumes, "as a direct result of the poor Transnet Freight Rail performance".
The company said that although thermal coal prices have softened in early 2023, prices can be expected to remain robust, though they unlikely to return to the high levels seen in 2022.
Given Transnet's poor performance in 2022, the company has reset its production outlook for 2023 and revised its export saleable production guidance downward.
"I look ahead with a sense of caution in the short term, yet confidence in the longer term. In the short term, fixing the rail network is a matter of critical importance to South Africa as the mining industry delivers far-reaching benefits such as sustained jobs and livelihoods in our communities, and it contributes significantly to the economy," said Thungela CEO July Ndlovu.-Fin24
Credit Suisse could face disciplinary action
Swiss financial regulator FINMA said it was considering whether to take disciplinary action against Credit Suisse managers after Switzerland's second largest bank had to be rescued last week by UBS.
FINMA President Marlene Amstad told Swiss newspaper NZZ am Sonntag it was "still open" whether new proceedings would be started, but the regulator's main focus was on "the transitional phase of integration" and "preserving financial stability".
UBS agreed to buy Credit Suisse for 3 billion Swiss francs (US$3.26 billion) in stock a week ago and to assume up to 5 billion francs in losses in a merger engineered by Swiss authorities during a period of market turmoil in global banking.
Credit Suisse on Sunday declined to comment on the FINMA President's comments when asked by Reuters for a response.
Asked whether FINMA is looking into holding current Credit Suisse managers accountable for the collapse of Switzerland's second-largest bank, Amstad said it is "exploring the options". He said:
FINMA had conducted six public "enforcement proceedings" against Credit Suisse in recent years, Amstad said.
"We have intervened and used our strongest instruments," she said of its previous moves.
Amstad also defended Switzerland's decision to write down 16 billion Swiss francs of Credit Suisse Additional Tier 1 (AT1) debt, to zero as part of the forced rescue merger.
"The AT1 instruments contractually provide that they will be fully written off in the event of a trigger event, in particular the granting of extraordinary government support," Amstad said.-Fin24
SVB loans, deposits sold
First Citizens Bank will buy "all the deposits and loans" of Silicon Valley Bank, after it went bankrupt at the beginning of March, a US banking agency said Sunday.
The transaction covers US$119 billion in deposits and US$72 billion in assets, and "SVB's 17 branches will open as First Citizens" on Monday, the Federal Deposit Insurance Corporation said.
Depositors of SVB will "automatically become depositors of First Citizens Bank", added the FDIC, which will continue to insure deposits.
SVB - the United States' 16th biggest bank by assets and a key lender to startups in the country since the 1980s - collapsed after a sudden run on deposits, prompting regulators to seize control.
Along with the FDIC, the United States Treasury and Federal Reserve had set out plans to ensure SVB customers would be able to access their deposits, while the Fed introduced a new lending tool for banks in an effort to prevent a repeat of SVB's quick demise.-Fin24
Accenture to cut 19 000 jobs
Tech consultancy Accenture announced it will be cutting around 19 000 jobs, or 2.5 percent of its workforce, spread over the next 18 months, as part of a cost-cutting effort.
In a filing with the US Securities and Exchange Commission, the Dublin-headquartered company said it expects to incur US$1.5 billion in costs as a result of the downsizing, including $1.2 billion directly related to the layoffs.
About half of the jobs lost are in administrative or support functions, not in areas that lead to billing of customers, the company said.
"While we continue to hire, especially to support our strategic growth priorities... we initiated actions to streamline our operations," the company said in a release.
Accenture's most recent annual report said it had 721 000 employees in 2022.
The tech consulting and optimisation company hired about 100 000 people in its 2022 fiscal year, which ended in August last year.-Fin24