Company news in brief

Africa Oil wants bigger stake in Orange Basin

Africa Oil Corp. is willing to fork out US$64 million, or more than N$1 billion, to acquire up to 8% of the issued shares in Impact Oil and Gas to increase its exposure in the oil-rich Orange Basin offshore Namibia.

In this regard, Africa Oil has made a cash offer to acquire from the shares from minority stakeholders in Impact, the Canadian company said in a statement.

Africa Oil currently holds a 31.1% shareholding in Impact.

Impact has a 18.89% stake in Block 2912 and 20% in Block 2913B offshore Namibia, together with partners TotalEnergies, Qatar Energy and Namcor. The blocks are in the vicinity of TotalEnergies’ Venus and Shell’s Graff and La Rona assets in the Orange Basin.

Commenting on the proposed deal, Africa Oil CEO Roger Tucker said: “This measured advance in our strategic shareholding strengthens our influence over Impact, in line with our objectives for 2024. These include positioning Africa Oil as the leading Independent E&P [exploration and production] company in the Orange Basin.”



Remgro reports earnings slump

Johann Rupert's Remgro reported a 40% plunge in interim headline earnings yesterday as it grappled with weaker results from its Heineken Beverages investment and the one-off effects of a spate of recent corporate activity.

The JSE-listed diversified investment holding company, which holds interests in a range of sectors such as consumer goods, healthcare and financial services, nevertheless managed to maintain its interim dividend at 80c per share.

But its headline earnings fell just over 40% to R2.1 billion in the six months ended December and just over 39% on a per share basis, the latter assisted by share buybacks during the period.

The group, which is chaired by Rupert and has a market capitalisation of about R71 billion, said its intrinsic net asset value per share, which is a key measure in investment holding companies, fell 4.6% to R236.95, but amid a share price rise its discount improved to just over 31% from about 41%.

Excluding the effect of corporate actions, headline earnings per share still fell by just over 13%.

Remgro also flagged how the second half of the 2023 calendar year was characterised by macroeconomic and geopolitical instability with inflationary pressures a "common global theme." – Fin24



Job cuts at Implats’ Zim unit

Impala Platinum's Zimbabwean unit is offering staff voluntary redundancy packages to cut costs because of anemic metal prices.

Weak platinum group metal prices are projected to last for the next 12 to 18 months, Zimplats chief executive officer Alex Mhembere said in a staff circular dated 18 March that was confirmed by the company.

The producer is beginning "a voluntary retrenchment exercise for all employees wishing to be considered," which may "mitigate the need for a compulsory retrenchment," the circular said.

Impala, known as Implats, and its PGM mining peers have already cut thousands of jobs in neighboring South Africa – which accounts for about 70% of global platinum output.

The four largest producers have all recently released sobering earnings reports, with profits battered by a sharp slump in metals prices since the start of last year.

Employees at Zimplats – Zimbabwe’s biggest producer of PGMs – are being offered a minimum of three months’ pay and must submit their application forms by March 22, according to the circular. – Fin24



Vodacom to cut jobs in SA

Vodacom is planning to cut jobs at home in South Africa, its biggest market, to help reduce costs.

Africa’s largest wireless company by market value expects to cut about 80 jobs, the Johannesburg-based Vodacom said. The firm employs about 5 400 people and the reductions will be at all levels of the company, it said.

“We routinely ensure that our business operations are fit for purpose as we transition from a telco to a leading technology company,” said a spokesman for Vodacom. “Additionally, Vodacom South Africa continues to proactively implement various cost reduction measures to ensure sustainable operations and maintain financial resilience.”

Tepid growth in South Africa, where the official jobless rate is 32.1%, and a plunge in metal prices is prompting companies to shed jobs to reduce costs. The nation’s platinum producers are in the process of trimming more than 6 000 jobs.

“We will pursue all alternatives to retrenchments,” said the Congress of South African Trade Unions spokesperson Matthew Parks. “Vodacom has made massive profits and there is no justification to retrench a single worker.”

Vodacom’s net income rose 9% to R8.5 billion in the six months ended September 30, while costs jumped 37% to R28 billion. – Fin24/Bloomberg