Company news in brief

Nedbank could nix future dividendsNedbank Group yesterday reaffirmed its 2019 dividend, but said it was weighing future dividend payments after South Africa's central bank urged lenders to preserve cash during the coronavirus crisis."Management and the board are consulting their advisors and monitoring evolving developments in this regard and will make further announcements as necessary," Nedbank said.Nedbank, one of South Africa's four largest lenders, said it currently expects the 2019 final dividend of 695 cents per ordinary share will be paid on April 20.The announcement comes after Standard Bank, Absa and Investec, said on Tuesday they were considering the South African Reserve Bank's guidance on the 2020 dividend and would update shareholders in due course. – Nampa/ReutersGlencore Zambian unit shut minesGlencore's Zambian unit Mopani Copper Mines (MCM) shuttered its mines yesterday following disruption from the Covid-19 pandemic and low copper prices, it said in a statement, after the country's mines minister earlier criticised the closure."In addition to the impacts of a rapid decline in the copper price, Mopani's situation has been further impacted by the critical disruptions to international mobility, transportation and supply chains arising from Covid-19," the company said.Zambia's mines minister earlier said MCM had declared "force majeure", a clause in contracts that allows contractual obligations to be ignored because of unavoidable circumstances.He questioned, however, whether there were legitimate grounds and said the government would block the mine shutdown, which he said would put 11 000 jobs at risk.In its statement, MCM said it was engaging with Zambia's government and unions about continuing its commitments to the workforce during care and maintenance, an industry term for a halt to mining operations during which only essential repairs are done. – Nampa/ReutersHeineken sees fall in Q1 beer salesHeineken, the world's second largest brewer, suffered a decline in beer sales in the first three months of the year, forecast worse to come in the second quarter and scrapped its 2020 guidance due to the coronavirus crisis.The brewer of Heineken, Tiger and Sol beers and Strongbow cider said yesterday it believed beer sales fell by 2% in the first quarter and overall volumes, including cider and soft drinks, by 4%."The impact is expected to worsen in the second quarter," the company said in a statement.The Dutch brewer said it had entered the crisis with a strong balance sheet and undrawn committed credit facilities and had secured additional financing on the debt market in recent weeks. It placed 1.4 billion euro of five- and 10-year notes in late March.Heineken, whose major markets are Brazil, Mexico and Vietnam, said it would provide more information on its actions to mitigate the impact of the coronavirus crisis in its first quarter trading update on April 22."In any case, the lack of visibility on the end date of the Covid-19 pandemic and the duration of its impact on the economy leads Heineken to withdraw all guidance for 2020," it said. – Nampa/ReutersEthiopian airlines lost US$550 mln this yearEthiopian Airlines chief executive officer Tewolde Gebremariam said on Tuesday the airline lost US$550 million from January to April because of the coronavirus outbreak."Due to coronavirus the airline is working at only 10% of its flight capacity and so far we have lost US$550 million," Tewolde said.Despite having suspended 91 out of 110 of its passenger flight destinations, the CEO said the company would not lay off any of its employees.In an attempt to compensate for the loss the company is redirecting its business to cargo flights and maintenance, including charters for Europeans and Americans wanting to be repatriated to their countries."We have already repatriated US peace corps as well as Europeans from Africa," he said. – Nampa/ReutersExxon lops 30% off 2020 spendingExxon Mobil Corp on Tuesday throttled back investment in shale, natural gas and deep water production, cutting planned capital spending by 30% this year as the coronavirus pandemic saps energy demand and oil prices tumble.Oil companies have pulled back 2020 spending plans by an average of 22% as countries limit air travel, order businesses closed and tell residents to stay home to combat the pandemic that has killed more than 76 000 worldwide.In a one-two punch, crude prices have sunk nearly 60% this year on lower demand for fuel spurred by the pandemic-driven economic hit and an oil price war."We haven’t seen anything like what we’re experiencing today," Exxon chief executive Darren Woods said on Tuesday as he detailed spending cuts on a conference call.The largest US oil producer set 2020 capital expenditure at US$23 billion, down US$10 billion from its earlier plan and the lowest in four years. Spending could drop even further and continue into next year if required, Woods said. – Nampa/Reuters

Company news in brief

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Namibian Sun 2024-11-25

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Company news in brief

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Namibian Sun 2024-11-25

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