COMPANY NEWS IN BRIEF

Glencore under new climate action pressure

Glencore is facing new investor questions over the climate impact of its top performing coal mining unit, ratcheting up pressure on the world’s biggest shipper of the dirtiest fossil fuel.

Shareholders with more than US$2 trillion of assets under management will vote at a May annual meeting on a resolution urging the company to explain how its thermal coal business aligns with efforts to limit the increase in global temperatures to 1.5 degrees Celsius. HSBC Asset Management and Legal and General Investment Management are among signatories to the document.

The move comes as concerns about climate change clash with the extreme profitability of coal, a result of the global energy crunch caused by Russia’s invasion of Ukraine. In the first half of 2022, Glencore posted a record core profit of US$18.9 billion — including US$9.5 billion from the unit that produces coal — largely thanks to soaring prices of the fuel.

Glencore previously promised to cap coal production at 2019 levels and reach net zero emissions by 2050, and last month announced it would not develop one of the largest planned mines of the fuel in Australia. Some investors remain concerned about the company’s plans, and almost a quarter of shareholders voted against its climate report in October.-Fin24

Shares in troubled Kenya Airways suspended

Trading in Kenya Airways shares has been suspended for another year, the local stock exchange said, as the troubled national carrier battles to return to profitability.

Last month, Kenyan President William Ruto said the government was ready to sell its entire stake in the airline, which has been languishing deep in the red for years.

Kenya Airways shares have been suspended since July 2020, in the midst of the Covid-19 pandemic that devastated global air travel.

"The extension of suspension seeks to enable the company (to) complete its operational and corporate restructure process," the Nairobi Securities Exchange said in a statement.

The government owns a 48.9 percent stake in Kenya Airways, while Air France-KLM has 7.8 percent.

"I'm willing to sell the whole of Kenya Airways," Ruto told Bloomberg News last month during his first visit to the United States as Kenyan president.

"I'm not in the business of running an airline that just has a Kenyan flag, that's not my business," said Ruto, who reportedly met executives from US carrier Delta Air Lines during the trip.-Fin24

Amazon to cut more than 18 000 jobs

Amazon announced it will cut more than 18,000 jobs from its workforce, citing "the uncertain economy" and the fact the online retail giant had "hired rapidly" during the pandemic.

"Between the reductions we made in November and the ones we're sharing today, we plan to eliminate just over 18 000 roles," said CEO Andy Jassy in a statement to staff.

US media had reported in November that the company was planning to lay off 10 000 people. Amazon had said that layoffs were planned but did not give a figure until now.

Jassy said the company's leadership was "deeply aware that these role eliminations are difficult for people, and we don't take these decisions lightly.

"We are working to support those who are affected and are providing packages that include a separation payment, transitional health insurance benefits, and external job placement support," he said.

Some of the layoffs would be in Europe, Jassy said, adding that the impacted workers would be informed starting on 18 January.-Fin24

Troubled Evergrande pledges to repay debts

China Evergrande has pledged to repay its debt this year, as the property giant faces a restructuring following Beijing's crackdown on excessive borrowing and rampant speculation in the real estate sector.

In an email seen by AFP, chairman Hui Ka Yan told staff that "2023 is a key year for Evergrande to fulfill its corporate responsibility and do everything in its power to ensure the delivery of construction projects".

"As long as everyone at Evergrande pulls together, never gives up, and works hard, we will certainly be able to complete the tasks of guaranteeing deliveries, repaying all kinds of debts, and resolving risks," Hui wrote.

The company last year resumed work on 732 construction sites and delivered 301 000 residential units to homebuyers, the message said.

Employees "endured huge physical and mental stress, and overcame countless difficulties to realise the impossible", Hui wrote.

Evergrande has rushed to offload assets in recent months and has been involved in restructuring talks after racking up some US$300 billion in liabilities.-Fin24

Invictus winding up operation in Zim

Invictus Energy, an Australian-listed company that is looking for oil in Zimbabwe, announced that prospecting for oil at its Mukuyu-1 site had become impractical and it would be winding up operations.

"Further attempts to obtain a fluid sample are not feasible and the company will conclude operations on Mukuyu-1 and ST1 and demobilise the well services equipment and personnel," the firm said in a statement. Invictus started drilling at its Mukuyu-1 site in September 2022.

In an earlier interview with News24, the company's managing director, Scott MacMillan, said they expected to drill for 45 to 60 days. They had hoped to find up to 20 trillion cubic feet and 845 million barrels of gas condensate.

Invictus spent R272 million in exploration costs over the past four years.

Some of the reasons for the failure given by the company this week include the poor performance of drilling equipment and difficult terrain. But the company is not leaving Zimbabwe.

Invictus is planning on drilling another well within a year, given that the first well "established the presence of multiple gas zones and potentially liquid hydrocarbon-bearing intervals."

Invictus hired Exalo Drilling SA, a European onshore drilling contractor, for the job. Since it intends to drill another well, Exalo's equipment will remain in the country.-Fin24

Salesforce to slash thousands of jobs

Salesforce said it would cut about 10% of its workforce after the enterprise software company hired too many people in the lead-up to the economic downturn and customers became more cautious with spending.

The company, which has about 80 000 employees, said in a regulatory filing on Wednesday that it aims to complete the workforce restructuring by the end of fiscal 2024 and real estate reductions in fiscal 2026.

The software giant is under pressure from investors including activist Starboard Value to improve margins. Meanwhile, it has projected the slowest revenue growth for the current quarter since going public in 2004 and has seen top executives Co-Chief Executive Officer Bret Taylor and Slack Chief Executive Officer Stewart Butterfield announce their departures.

“The environment remains challenging and our customers are taking a more measured approach to their purchasing decisions,” Chief Executive Officer Marc Benioff said in a letter to employees on Wednesday. “As our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we’re now facing, and I take responsibility for that.”-Fin24