Company news in brief

MTN reviewing allegations in US complaint

South African telecoms firm MTN on Monday said it was reviewing allegations raised in a US complaint which accuses several firms of paying protection money to militant Islamist groups in Afghanistan.

The complaint was filed in the United States District Court in the District of Columbia on Friday.

It alleges the firms violated the US Anti-Terrorism Act by paying protection money to al Qaeda and the Taliban, thereby providing material support to known terrorist organisations.

It seeks damages on behalf of US military members and civilians killed or wounded in Afghanistan between 2009 and 2017.

"MTN is reviewing the details of the report and is consulting its advisers but remains of the view that it conducts its business in a responsible and compliant manner in all its territories," the company said in a statement.

"We cannot comment further than what we've said in the statement. We want a chance to review the allegations. We only received the suit on Friday and we're still going through it. I also can't confirm how long it's going to take," MTN spokeswoman Nompilo Morafo said.

MTN is Africa's largest mobile operator and eighth biggest in the world with 243.7 million subscribers. It has previously faced scrutiny over its Iranian operations. – Nampa/Reuters

Exxon acquires exploration acreage offshore Egypt

Exxon Mobil Corp said on Monday it had acquired more than 1.7 million acres for exploration offshore Egypt, strengthening its portfolio in the eastern Mediterranean.

Operations at the 1.2 million North Marakia Offshore block located about five miles offshore Egypt's northern coast, and 543 000 acres in the North East El Amriya Offshore block in the Nile Delta are scheduled to begin in 2020.

Exxon marked its foray into gas exploration in Egypt by winning awards in one of the country's largest-ever oil and gas exploration tenders in February.

Egypt petroleum minister Tarek El Molla had said that the country expects investments of at least US$750 million to US$800 million in the first stage of exploration in the total of 12 concessions announced in February.

Italy's Eni's discovery of the giant Zohr field in 2015, the largest in the Mediterranean and estimated to hold about 30 trillion cubic feet of gas, has raised interest in exploration in Egypt, with the country reaching maritime demarcation agreements with several countries in the region. – Nampa/Reuters

Huawei forecasts ‘difficult’ 2020

Huawei Technologies on Tuesday said its full-year revenue would likely jump 18% in 2019 to 850 billion yuan (US$121.72 billion), lower than its earlier projections, as a US trade blacklisting curbed growth and disrupted its ability to source key parts.

The world's biggest maker of telecom network equipment and the no. 2 manufacturer of smartphones, was all but banned by the United States in May from doing business with US companies, preventing its access to technology like Google's Android operating system.

Huawei's rotating chairman Eric Xu revealed the numbers in a New Year's message to employees and customers in which he also forecasted 2020 to be a "difficult year', saying that the firm was unlikely to grow as rapidly as it did in the first half of this year.

The company did not break down fourth-quarter figures but according to Reuters calculations based on its previous statements, revenue in the quarter to end Dec. 31 rose to 239.2 billion yuan (US$23.28 billion), up 3.9% from a year earlier and slower than the 27% increase it reported in the third quarter.

Xu said that Huawei shipped 240 million smartphones last year, a 20% increase from 2018. Huawei has mainly sold smartphones that were launched before the ban.

In his letter, Xu said they would continue to remove mediocre managers and complacent employees as Huawei needed to rid the company of complacency, and that they would remove managers performing in the bottom 10% every year. – Nampa/Reuters

Nestle wraps up share buyback

Swiss food giant Nestle wrapped up Monday a huge share buyback programme launched in 2017, and confirmed another is imminent as it pursues a shake-up of its vast brand portfolio.

A Nestle statement said the group had completed a share buyback programme worth 20 billion euro (US$20.6 billion) and would launch the next for the same amount today.

The first programme that began on July 4, 2017 has allowed Nestle to acquire more than 225 million of its own shares, which have been cancelled or are to be cancelled in the coming months.

The next programme is to run from January until the end of 2022, the statement said.

Share buybacks are often seen as a sign that a company believes its stock is undervalued, and as an efficient way to returning money to shareholders. But they can also be seen as a sign that the management does not see many profitable ways of helping the company grow further.

Money to repurchase the Nestle shares has come from sales of brands that it no longer believes are essential to its core business. – Nampa/AFP

Turkish Airlines, Boeing reach compensation deal

Turkish Airlines and Boeing Co have agreed on compensation for certain losses caused by grounded and undelivered Boeing 737 Max aircraft, the Turkish airline said on Tuesday.

The statement to the Istanbul stock exchange did not specify the deal's value, but Hurriyet newspaper said it was worth US$225 million: US$150 million in compensation and US$75 million covering things such as spare parts and training.

Turkish Airlines has 24 Boeing 737 MAX planes in its fleet.

The 737 MAX has been grounded since March after two crashes in Indonesia and Ethiopia killed 346 people within five months, costing the plane manufacturer more than US$9 billion so far.

In December, a media report had said Turkish Airlines was preparing to open a court case against Boeing in relation to its losses.

Last week, Boeing fired chief executive Dennis Muilenburg after the company repeatedly failed to contain the fallout from the crashes, which halted output of its best-selling jetliner and tarnished its reputation. – Nampa/Reuters