COMPANY NEWS IN BRIEF
PIC reaches R2.7-trillion mark, but transparency concerns linger over unlisted assets
The Public Investment Corporation (PIC), the government-owned asset manager that manages its social security funds, grew its assets under management (AuM) by 3.6% to R2.69 trillion as of the end of March 2024, according to its annual report tabled in Parliament.
The PIC is the largest investor on the JSE and the largest asset manager on the continent.
However, the report notably did not include a complete list of all listed and unlisted investments – as required by an amendment to the Public Investment Corporation Act in 2021.
According to the 2021 amendment, "a report reflecting all investments of deposits, whether listed or unlisted, must annually be (a) submitted to the minister for tabling with the annual report of the (b) published on the website of the corporation".
-FIN24-
Brazil's Petrobras to purchase offshore oil block stake in South Africa
Brazilian state-run oil company Petrobras announced on Tuesday that its board gave a green light to acquire a 10% stake in the offshore Deep Western Orange Basin (DWOB) oil block in South Africa, according to a securities filing.
The purchase of the stake in the deep water field followed a competitive process held by French oil major Total, which operates the project and will retain a 40% stake in the block.
-REUTERS-
PPC volumes local volumes in decline
SA's biggest cement maker PPC said on Monday its local volumes fell almost five months in the first four months of its 2025 year. Despite recent relief from interest rates and improved confidence, it's still not seeing clear evidence of large-scale infrastructure projects or retail developments. Cement sales volumes in SA and Botswana decreased by 4.6% in the four months to end-July, but price hikes of 5.5% allowed revenue in this market to grow by 1.6%, the group said in a trading update. But core profit fell 10.4% as fixed costs increased by more than inflation, the group said, and the SA cement business is the key focus area as it looks to improve profitability and cash generation at its businesses. Zimbabwe contributed 30% to group revenue in the four months to end-July, following a revenue fall of 4.5%, with the group reporting that in response to significant increases in electricity tariffs it had increased prices in US dollars by 4.5%. Imports continue to increase in Zimbabwe, adding to the pressure, the group said.
-FIN24-
SPAR reports increase in turnover
Retailer SPAR reported that turnover from continuing operations increased by 4.1% for the 47 weeks to 23 August, which was adversely affected by fluctuations in exchange rates and inflation since it last reported its turnover for the six months ending March. Combined core grocery and liquor sales growth of 3.6% in southern Africa contrasted against internally measured price inflation of 5.8%, but liquor sales showed an "exceptional performance" of 10.5%. Pleasingly, total retail growth to the end of August through its grocery and liquor stores has grown by 6.1% (5.7% like-for-like), "showing the strength and resilience of the SPAR brand".
-FIN24-
Multichoice, Canal+ file joint merger
French media group Canal+ and MultiChoice made a joint announcement that they had made a joint merger filing to SA's competition authority, adding that they are also engaging with the Independent Communications Authority of South Africa and other regulatory authorities. Canal+, which is part of French group Vivendi, made a R125 per share offer in April that came at a hefty premium of about two thirds and which valued the group at over R50 billion.
-FIN24-
Exxon, Chevron, Conoco in R721 billion payments to foreign governments
The three largest US energy exploration companies paid more than $42 billion (R721 billion) to foreign governments last year, about eight times more than what they paid in the United States, according to regulatory filings. The disclosures from Exxon Mobil, Chevron Corp, and ConocoPhillips were required this year for the first time ever under a new Securities and Exchange Commission requirement. Transparency advocates had been pushing for the rule for more than a decade to shine a light on Big Oil's foreign financial transactions in its global quest for oil and provide a sense of whether US taxpayers are getting a fair share of the value of soaring US production. -Reuters-
Stellantis, Aston Martin shares tumble
Shares in Jeep-maker Stellantis and Britain's Aston Martin tumbled on Monday after both companies joined European rivals in cutting their profit forecasts. European auto giant Stellantis, whose other top brands include Peugeot, Ram and Fiat, cited efforts to improve its US business as well as competition from Chinese automakers. The company, which also makes Maserati, Dodge and Chrysler cars, said it now expects an adjusted operating income margin ranging between 5.5% and 7%. It had previously expected double-digit growth. Stellantis shares sank by almost 13% to €12.74 ($14.26) in late morning deals on the Paris stock exchange.
-AFP-
The Public Investment Corporation (PIC), the government-owned asset manager that manages its social security funds, grew its assets under management (AuM) by 3.6% to R2.69 trillion as of the end of March 2024, according to its annual report tabled in Parliament.
The PIC is the largest investor on the JSE and the largest asset manager on the continent.
However, the report notably did not include a complete list of all listed and unlisted investments – as required by an amendment to the Public Investment Corporation Act in 2021.
According to the 2021 amendment, "a report reflecting all investments of deposits, whether listed or unlisted, must annually be (a) submitted to the minister for tabling with the annual report of the (b) published on the website of the corporation".
-FIN24-
Brazil's Petrobras to purchase offshore oil block stake in South Africa
Brazilian state-run oil company Petrobras announced on Tuesday that its board gave a green light to acquire a 10% stake in the offshore Deep Western Orange Basin (DWOB) oil block in South Africa, according to a securities filing.
The purchase of the stake in the deep water field followed a competitive process held by French oil major Total, which operates the project and will retain a 40% stake in the block.
-REUTERS-
PPC volumes local volumes in decline
SA's biggest cement maker PPC said on Monday its local volumes fell almost five months in the first four months of its 2025 year. Despite recent relief from interest rates and improved confidence, it's still not seeing clear evidence of large-scale infrastructure projects or retail developments. Cement sales volumes in SA and Botswana decreased by 4.6% in the four months to end-July, but price hikes of 5.5% allowed revenue in this market to grow by 1.6%, the group said in a trading update. But core profit fell 10.4% as fixed costs increased by more than inflation, the group said, and the SA cement business is the key focus area as it looks to improve profitability and cash generation at its businesses. Zimbabwe contributed 30% to group revenue in the four months to end-July, following a revenue fall of 4.5%, with the group reporting that in response to significant increases in electricity tariffs it had increased prices in US dollars by 4.5%. Imports continue to increase in Zimbabwe, adding to the pressure, the group said.
-FIN24-
SPAR reports increase in turnover
Retailer SPAR reported that turnover from continuing operations increased by 4.1% for the 47 weeks to 23 August, which was adversely affected by fluctuations in exchange rates and inflation since it last reported its turnover for the six months ending March. Combined core grocery and liquor sales growth of 3.6% in southern Africa contrasted against internally measured price inflation of 5.8%, but liquor sales showed an "exceptional performance" of 10.5%. Pleasingly, total retail growth to the end of August through its grocery and liquor stores has grown by 6.1% (5.7% like-for-like), "showing the strength and resilience of the SPAR brand".
-FIN24-
Multichoice, Canal+ file joint merger
French media group Canal+ and MultiChoice made a joint announcement that they had made a joint merger filing to SA's competition authority, adding that they are also engaging with the Independent Communications Authority of South Africa and other regulatory authorities. Canal+, which is part of French group Vivendi, made a R125 per share offer in April that came at a hefty premium of about two thirds and which valued the group at over R50 billion.
-FIN24-
Exxon, Chevron, Conoco in R721 billion payments to foreign governments
The three largest US energy exploration companies paid more than $42 billion (R721 billion) to foreign governments last year, about eight times more than what they paid in the United States, according to regulatory filings. The disclosures from Exxon Mobil, Chevron Corp, and ConocoPhillips were required this year for the first time ever under a new Securities and Exchange Commission requirement. Transparency advocates had been pushing for the rule for more than a decade to shine a light on Big Oil's foreign financial transactions in its global quest for oil and provide a sense of whether US taxpayers are getting a fair share of the value of soaring US production. -Reuters-
Stellantis, Aston Martin shares tumble
Shares in Jeep-maker Stellantis and Britain's Aston Martin tumbled on Monday after both companies joined European rivals in cutting their profit forecasts. European auto giant Stellantis, whose other top brands include Peugeot, Ram and Fiat, cited efforts to improve its US business as well as competition from Chinese automakers. The company, which also makes Maserati, Dodge and Chrysler cars, said it now expects an adjusted operating income margin ranging between 5.5% and 7%. It had previously expected double-digit growth. Stellantis shares sank by almost 13% to €12.74 ($14.26) in late morning deals on the Paris stock exchange.
-AFP-
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