COMPANY NEWS IN BRIEF

Hyundai expects new family

Korean automaker Hyundai Motor Co is creating a family of electric vehicles it will sell under the Ioniq brand as part of its drive to become the world's third-largest seller of EVs by 2025, the company said.

Hyundai said the elevation of Ioniq from an individual vehicle nameplate to a brand will help support its goal of capturing 10% of global EV sales in 2025.

With electric vehicles still struggling to gain traction in most major markets, Hyundai's main competitors will likely include traditional automakers Volkswagen AG and General Motors Co, both of which have announced plans to build and sell a million or more electric vehicles a year by 2025.

California-based Tesla Inc, which makes only electric vehicles, aims to retain its current position as the world's EV leader. Chief Executive Elon Musk has said he expects the company to sell "a few million" vehicles in 2025.

Ioniq was launched four years ago as a vehicle name plate under the Hyundai brand. The compact hatchback was offered with a choice of three powertrains: Conventional gas-electric hybrid, plug-in hybrid and pure battery electric. Those models will continue in production. - Nampa/Reuters

Simon, Amazon transforming

Mall operator Simon Property Group Inc has been in talks with Amazon.com Inc about turning some of its department-store sites into Amazon fulfilment centres.

The two companies have explored converting retail space formerly occupied by J.C. Penney Co Inc and Sears Holdings Corp into Amazon distribution centres, while in some cases, Simon and Amazon explored buying out occupied space from the retailers, the report said, citing sources.

Simon's discussions with Amazon have been under way for months and began before the coronavirus pandemic, according to the report. It is possible that the two sides could fail to reach an agreement, the report said, citing the sources.

A spokeswoman for Amazon said the company has a policy of not commenting on speculation, when contacted by Reuters. Simon Property did not respond to a Reuters request for comment. Both J.C. Penney and Sears declined to comment. – Nampa/Reuters

HK's Analogue, US sanctions

Building services provider Analogue Holdings Ltd said it did not believe sanctions imposed on Hong Kong Justice Secretary Teresa Cheng, spouse of its chairman, will impact its business.

Washington imposed sanctions on Hong Kong chief executive Carrie Lam and 10 other top officials including Cheng, for what it called their role in curtailing political freedoms in the territory, prompting a sharp rebuke from Beijing.

Cheng, spouse of chairman and executive director Otto Poon, does not have any legal or beneficial ownership or financial interests in any of the company shares, the firm said in a Hong Kong bourse filing.

"With the assistance of the company's US legal counsel, the company has reviewed the US Treasury's announcement and preliminarily does not believe the sanctions imposed therein on Ms. Cheng will apply to the group based on all available information at this time," the company said.

"However, the company and its US legal counsel will continue to monitor the situation," it added. Analogue had in March agreed to buy a 51% stake in New York-based repair and maintenance services firm Elevator & Electric Inc for US$35.7 million. – Nampa/Reuters

Saudi Aramco's profit plunges

State oil giant Saudi Aramco's profit plunged 73% in the second quarter of the year, as a slump in energy demand and prices due to the coronavirus crisis hit sales at the world's biggest oil exporter.

But the company stuck with plans to pay US$75 billion in dividends this year and CEO Amin Nasser said global oil demand was recovering.

All major oil companies have taken a hit in the second quarter as lockdowns to contain the coronavirus limited travel, which reduced oil consumption and sent prices tumbling to levels not seen in nearly two decades.

Aramco, which listed in Riyadh last year in a record US$29.4 billion flotation, said the rapid spread of Covid-19 globally had significantly reduced demand for crude oil, natural gas and petroleum products.

Nasser told reporters he had seen a partial recovery in the energy market and a pickup in demand as economies gradually open after the easing of coronavirus lockdowns. – Nampa/Reuters

Oil giants' cuts production

The world's five largest oil companies collectively cut the value of their assets by nearly US$50 billion in the second quarter, and slashed production rates as the coronavirus pandemic caused a drastic fall in fuel prices and demand.

The dramatic reductions in asset valuations and decline in output show the depth of the pain in the second quarter. Fuel demand at one point was down by more than 30% worldwide, and still remains below pre-pandemic levels.

Several executives said they took massive write downs because they expect demand to remain impaired for several more quarters as people travel less and use less fuel due to the ongoing global pandemic that has killed more than 700 000 people.

Of those five companies, only Exxon Mobil did not book sizeable impairments. But an ongoing re-evaluation of its plans could lead to a "significant portion" of its assets being impaired, it reported, and signal the elimination of 20% or 4.4 billion barrels of its oil and gas reserves.

By contrast, BP took a US$17 billion hit. It said it plans to re-centre its spending in coming years around renewables and less on oil and natural gas. – Nampa/Reuters