Company news in brief
Discovery soothed on spending
Shares in South Africa's Discovery rose almost 7% on Thursday, as investors who had been spooked by a profit warning last week welcomed more detail on hefty investments that have been repeatedly hurting the insurer's bottom line.
The company, which has shaken up traditional approaches to insurance with a model that ties premium rates to clients' lifestyle choices, has been sacrificing profits in order to plough funds into new ventures including a bank.
Its stock lost 8% last Monday when it warned profits would again drop by up to 13% as a result. It said on Thursday its diluted headline earnings per share - the main profit measure in South Africa - fell by 10% to 311.7 cents.
Discovery said on Thursday that investments in new ventures were weighted to the first six months of the year, and likely to decline in the second half.
It has said previously spending on the bank, which adapts its model of insurance to lending by tying interest rates to customers' behaviour, will fall quickly over the coming years.
Since its launch last year, Discovery said the bank had grown to serve 78 000 clients with deposits of r1.2 billion and R2.5 billion of credit granted. – Nampa/Reuters
AngloGold earnings lifted by bullion price
AngloGold Ashanti posted an expected 72% leap in annual earnings on Friday, boosted by higher bullion prices and its Kibali joint venture in Democratic Republic of Congo, as it forges ahead with a disposal plan to focus on higher returns.
The gold miner, which last week said it was selling its last remaining South African assets to Harmony Gold for US$300 million, reported 2019 headline earnings per share of 91 cents, up from 53 cents the previous year.
AngloGold's free cash flow before growth capital, on which its dividend is based, surged 106% to US$448 million, compared with US$217 million in the previous year.
The miner approved a dividend of 165 cents per share, up from 95 cents in 2018.
Gold production for the full year slipped to 3.281 million ounces, from 3.4 million ounces in 2018, hit by operational challenges at its Siguiri, Sunrise Dam and Cerro Vanguardia mines. – Nampa/Reuters
Hammerson to exit out-of-town retail park
Hammerson said on Friday it will exit out-of-town retail locations by selling seven of them to private equity Orion for 400 million pounds amid store closures on the UK High Street and rise of online stores.
The company has been trimming debt and fixing its balance sheet by divesting some its portfolio to focus on its flagship sites, premium outlets and city quarters across Europe.
The company announced plans in 2018 to sell shopping centres that house a number of large retail chains following its failed takeover of rival Intu Properties. It has so far sold 14 retail parks and earned 764 million pounds.
Hammerson still holds an interest in a park that is held as a joint venture with Aberdeen Standard Investments and is marked for sale.
Intu too has been struggling with debt and had recently said it was in talks with its largest shareholder and new investors to raise funds to shore up its balance sheet. – Nampa/Reuters
Aspen forecasts better H1 results
South Africa's Aspen Pharmacare Holdings Ltd said on Friday it expects to report half-year results slightly above its forecast as the drugmaker's manufacturing unit benefited from the restart of heparin sales to third party customers.
Revenue is expected to grow between 2% and 4% for the six months ended Dec. 31, the company said in a statement.
The nearly 170-year-old drug maker, with a presence in about 56 countries, had said in September that it would pursue supplying heparin to third party customers again, "given the pricing and the significant stockholding established."
Aspen had suspended the supply of the blood-thinning medication to third parties due to limited global availability as a result of the outbreak of African swine fever in China, the world's biggest pork producer.
However, the company also said it expects to record a charge of R500 million related to certain regional brands. – Nampa/Reuters
Anglo American boosted by strong metals
Surging prices for iron ore and precious metals boosted 2019 profits for Anglo American, outweighing weakness in diamonds and coal.
The London-listed miner has led rivals in a recovery from a 2015-16 commodities crash through operational improvements helped by new technologies, investing modestly in high return projects and exposure to a range of commodities.
Anglo's underlying earnings before interest, tax, depreciation and amortisation (EBITDA), a measure closely watched by analysts, rose 9% to US$10 billion in the year to December.
Anglo produces platinum, palladium and rhodium which are used to reduce emissions in automobiles. More stringent environmental regulations is forcing auto makers to increase their use.
Palladium and rhodium prices have hit records levels this year as supply has failed to keep pace with demand.
Iron ore prices soared following a disaster at a tailings dam owned by then top iron ore producer Vale SA in January last year. Dalian Commodity Exchange's front-month iron ore futures contract gained 28% in 2019.
Anglo declared a final dividend of US$0.47 a share, bringing total dividends for the year to US$1.09 per share versus US$1 paid out in 2018. – Nampa/Reuters
Shares in South Africa's Discovery rose almost 7% on Thursday, as investors who had been spooked by a profit warning last week welcomed more detail on hefty investments that have been repeatedly hurting the insurer's bottom line.
The company, which has shaken up traditional approaches to insurance with a model that ties premium rates to clients' lifestyle choices, has been sacrificing profits in order to plough funds into new ventures including a bank.
Its stock lost 8% last Monday when it warned profits would again drop by up to 13% as a result. It said on Thursday its diluted headline earnings per share - the main profit measure in South Africa - fell by 10% to 311.7 cents.
Discovery said on Thursday that investments in new ventures were weighted to the first six months of the year, and likely to decline in the second half.
It has said previously spending on the bank, which adapts its model of insurance to lending by tying interest rates to customers' behaviour, will fall quickly over the coming years.
Since its launch last year, Discovery said the bank had grown to serve 78 000 clients with deposits of r1.2 billion and R2.5 billion of credit granted. – Nampa/Reuters
AngloGold earnings lifted by bullion price
AngloGold Ashanti posted an expected 72% leap in annual earnings on Friday, boosted by higher bullion prices and its Kibali joint venture in Democratic Republic of Congo, as it forges ahead with a disposal plan to focus on higher returns.
The gold miner, which last week said it was selling its last remaining South African assets to Harmony Gold for US$300 million, reported 2019 headline earnings per share of 91 cents, up from 53 cents the previous year.
AngloGold's free cash flow before growth capital, on which its dividend is based, surged 106% to US$448 million, compared with US$217 million in the previous year.
The miner approved a dividend of 165 cents per share, up from 95 cents in 2018.
Gold production for the full year slipped to 3.281 million ounces, from 3.4 million ounces in 2018, hit by operational challenges at its Siguiri, Sunrise Dam and Cerro Vanguardia mines. – Nampa/Reuters
Hammerson to exit out-of-town retail park
Hammerson said on Friday it will exit out-of-town retail locations by selling seven of them to private equity Orion for 400 million pounds amid store closures on the UK High Street and rise of online stores.
The company has been trimming debt and fixing its balance sheet by divesting some its portfolio to focus on its flagship sites, premium outlets and city quarters across Europe.
The company announced plans in 2018 to sell shopping centres that house a number of large retail chains following its failed takeover of rival Intu Properties. It has so far sold 14 retail parks and earned 764 million pounds.
Hammerson still holds an interest in a park that is held as a joint venture with Aberdeen Standard Investments and is marked for sale.
Intu too has been struggling with debt and had recently said it was in talks with its largest shareholder and new investors to raise funds to shore up its balance sheet. – Nampa/Reuters
Aspen forecasts better H1 results
South Africa's Aspen Pharmacare Holdings Ltd said on Friday it expects to report half-year results slightly above its forecast as the drugmaker's manufacturing unit benefited from the restart of heparin sales to third party customers.
Revenue is expected to grow between 2% and 4% for the six months ended Dec. 31, the company said in a statement.
The nearly 170-year-old drug maker, with a presence in about 56 countries, had said in September that it would pursue supplying heparin to third party customers again, "given the pricing and the significant stockholding established."
Aspen had suspended the supply of the blood-thinning medication to third parties due to limited global availability as a result of the outbreak of African swine fever in China, the world's biggest pork producer.
However, the company also said it expects to record a charge of R500 million related to certain regional brands. – Nampa/Reuters
Anglo American boosted by strong metals
Surging prices for iron ore and precious metals boosted 2019 profits for Anglo American, outweighing weakness in diamonds and coal.
The London-listed miner has led rivals in a recovery from a 2015-16 commodities crash through operational improvements helped by new technologies, investing modestly in high return projects and exposure to a range of commodities.
Anglo's underlying earnings before interest, tax, depreciation and amortisation (EBITDA), a measure closely watched by analysts, rose 9% to US$10 billion in the year to December.
Anglo produces platinum, palladium and rhodium which are used to reduce emissions in automobiles. More stringent environmental regulations is forcing auto makers to increase their use.
Palladium and rhodium prices have hit records levels this year as supply has failed to keep pace with demand.
Iron ore prices soared following a disaster at a tailings dam owned by then top iron ore producer Vale SA in January last year. Dalian Commodity Exchange's front-month iron ore futures contract gained 28% in 2019.
Anglo declared a final dividend of US$0.47 a share, bringing total dividends for the year to US$1.09 per share versus US$1 paid out in 2018. – Nampa/Reuters
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