COMPANY NEWS IN BRIEF
Shell to boost shareholder returns
Royal Dutch Shell will boost returns to shareholders via share buybacks or dividends earlier than expected after a sharp rise in oil and gas prices helped it reduce debt, the Anglo-Dutch energy firm said on Wednesday.
Shell will increase its distribution to shareholders to 20% to 30% of cash flow from operations beginning in the second quarter, the company said in a statement before quarterly results.
The move, which comes earlier than many analysts had expected, was due to "strong operational and financial delivery, combined with an improved macroeconomic outlook."
Shell previously said it would boost returns once its net debt dropped below US$65 billion. The company said on Wednesday it would "retire" the target without specifying whether it had hit it.
"In the second quarter, Shell expects to have further reduced its net debt, although the extent of the reduction will be moderated by working capital movements," it said.
Analysts had largely expected Shell to increase distribution towards the end of the year, but a strong rise in oil and natural gas prices in recent months accelerated the timetable. -Nampa/Reuters
Visa clients spending on crypto cards
Visa Inc said on Wednesday its customers spent more than US$1 billion on its crypto-linked cards in the first half of this year, as the payments processor takes steps to make crypto transactions smoother.
The company said it was partnering with 50 cryptocurrency platforms to make it easier for customers to convert and spend digital currencies at 70 million merchants worldwide.
The move is in line with Visa's broader acceptance of digital currencies. In March, the company announced it will allow the use of the USD Coin to settle transactions on its payment network.
Investor sentiment on cryptocurrencies has somewhat soured recently, with regulatory crackdowns in China and elsewhere. Bitcoin, the world's biggest cryptocurrency, has seen a punishing slide following the euphoria earlier this year which took it to record highs.
However, a clutch of high-profile names is continuing to strengthen their involvement with the digital assets. Last week, Japan's investment giant SoftBank Group Corp invested US$200 million in Mercado Bitcoin, one of the largest cryptocurrency exchanges in Latin America. -Nampa/Reuters
Stevanato eyes US$7 bln valuation
Italy's Stevanato Group, a maker of glass vials for Covid-19 vaccine and other healthcare products, said on Wednesday it was seeking a valuation of over US$7 billion in its US initial public offering (IPO).
Founded by billionaire Sergio Stevanato, the company said in its filing that a total of 40 million shares would be offered for sale priced between US$21 and US$24 each. The IPO would raise US$960 million at the top end of that range.
About 30% of those shares will be offered by the Stevenato family holding, an existing investor. The proceeds from those shares will not go to the company.
Padua-based Stevanato Group started in 1949 as Soffieria Stella, a specialty glass manufacturer that was the precursor to the medical packaging company. The company started its international expansion in 2015 after the purchase of a primary packaging company in Slovakia.
Stevanato, whose IPO plans were reported by Reuters in February, will list on the New York Stock Exchange under the symbol "STVN”. -Nampa/Reuters
Terna to invest US$21 billion
Italy's Terna has pledged to invest a record 18.1 billion euros (US$21 billion) in the country's power grid over the next 10 years to meet the demands of the energy transition and economic recovery.
Terna, one of Europe's biggest power grid players, said the projects in the new long-term development plan for the national grid would make it possible to cut carbon emissions by 5.6 million tonnes per year, double that of the previous plan.
"Thanks to the commitment of all our people, we will be able to develop an electricity system that is increasingly efficient, sustainable and 'green'," CEO Stefano Donnarumma said.
The future of Europe's energy transition away from fossil fuels to cleaner sources is heavily dependent on more efficient digitalised grids being developed, to cope with less predictable flows from solar and wind power.
The investments in the grid will help strengthen connections between the south of the country, which produces more electricity from renewable sources, and the industrial north where power demand is heavier, said Terna, which is controlled by national state lender CDP. -Nampa/Reuters
Telefonica to sell minority stake
Spanish telecoms operator Telefonica plans to raise as much as 500 million euros (US$591.35 million) with the sale of a minority stake in its technology unit, Cinco Dias newspaper reported on Wednesday, citing financial sources.
Telefonica has hired advisor KPMG and investment bank Morgan Stanley and potential buyers include private equity funds such as Apax Partners, the newspaper said.
Telefonica is ready to sell up to 49% of the unit, which is initially valued at 1 billion euros. The unit includes cybersecurity, Internet of Things a cloud computing operation, Cinco Dias said.
The sale would be part of a wider Telefonica plan to reduce its debt by selling assets. A spokesperson for Telefonica declined to comment. -Nampa/Reuters
Royal Dutch Shell will boost returns to shareholders via share buybacks or dividends earlier than expected after a sharp rise in oil and gas prices helped it reduce debt, the Anglo-Dutch energy firm said on Wednesday.
Shell will increase its distribution to shareholders to 20% to 30% of cash flow from operations beginning in the second quarter, the company said in a statement before quarterly results.
The move, which comes earlier than many analysts had expected, was due to "strong operational and financial delivery, combined with an improved macroeconomic outlook."
Shell previously said it would boost returns once its net debt dropped below US$65 billion. The company said on Wednesday it would "retire" the target without specifying whether it had hit it.
"In the second quarter, Shell expects to have further reduced its net debt, although the extent of the reduction will be moderated by working capital movements," it said.
Analysts had largely expected Shell to increase distribution towards the end of the year, but a strong rise in oil and natural gas prices in recent months accelerated the timetable. -Nampa/Reuters
Visa clients spending on crypto cards
Visa Inc said on Wednesday its customers spent more than US$1 billion on its crypto-linked cards in the first half of this year, as the payments processor takes steps to make crypto transactions smoother.
The company said it was partnering with 50 cryptocurrency platforms to make it easier for customers to convert and spend digital currencies at 70 million merchants worldwide.
The move is in line with Visa's broader acceptance of digital currencies. In March, the company announced it will allow the use of the USD Coin to settle transactions on its payment network.
Investor sentiment on cryptocurrencies has somewhat soured recently, with regulatory crackdowns in China and elsewhere. Bitcoin, the world's biggest cryptocurrency, has seen a punishing slide following the euphoria earlier this year which took it to record highs.
However, a clutch of high-profile names is continuing to strengthen their involvement with the digital assets. Last week, Japan's investment giant SoftBank Group Corp invested US$200 million in Mercado Bitcoin, one of the largest cryptocurrency exchanges in Latin America. -Nampa/Reuters
Stevanato eyes US$7 bln valuation
Italy's Stevanato Group, a maker of glass vials for Covid-19 vaccine and other healthcare products, said on Wednesday it was seeking a valuation of over US$7 billion in its US initial public offering (IPO).
Founded by billionaire Sergio Stevanato, the company said in its filing that a total of 40 million shares would be offered for sale priced between US$21 and US$24 each. The IPO would raise US$960 million at the top end of that range.
About 30% of those shares will be offered by the Stevenato family holding, an existing investor. The proceeds from those shares will not go to the company.
Padua-based Stevanato Group started in 1949 as Soffieria Stella, a specialty glass manufacturer that was the precursor to the medical packaging company. The company started its international expansion in 2015 after the purchase of a primary packaging company in Slovakia.
Stevanato, whose IPO plans were reported by Reuters in February, will list on the New York Stock Exchange under the symbol "STVN”. -Nampa/Reuters
Terna to invest US$21 billion
Italy's Terna has pledged to invest a record 18.1 billion euros (US$21 billion) in the country's power grid over the next 10 years to meet the demands of the energy transition and economic recovery.
Terna, one of Europe's biggest power grid players, said the projects in the new long-term development plan for the national grid would make it possible to cut carbon emissions by 5.6 million tonnes per year, double that of the previous plan.
"Thanks to the commitment of all our people, we will be able to develop an electricity system that is increasingly efficient, sustainable and 'green'," CEO Stefano Donnarumma said.
The future of Europe's energy transition away from fossil fuels to cleaner sources is heavily dependent on more efficient digitalised grids being developed, to cope with less predictable flows from solar and wind power.
The investments in the grid will help strengthen connections between the south of the country, which produces more electricity from renewable sources, and the industrial north where power demand is heavier, said Terna, which is controlled by national state lender CDP. -Nampa/Reuters
Telefonica to sell minority stake
Spanish telecoms operator Telefonica plans to raise as much as 500 million euros (US$591.35 million) with the sale of a minority stake in its technology unit, Cinco Dias newspaper reported on Wednesday, citing financial sources.
Telefonica has hired advisor KPMG and investment bank Morgan Stanley and potential buyers include private equity funds such as Apax Partners, the newspaper said.
Telefonica is ready to sell up to 49% of the unit, which is initially valued at 1 billion euros. The unit includes cybersecurity, Internet of Things a cloud computing operation, Cinco Dias said.
The sale would be part of a wider Telefonica plan to reduce its debt by selling assets. A spokesperson for Telefonica declined to comment. -Nampa/Reuters
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