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IHH Healthcare's unit wants up to $1.25 Billion from Japan's Daiichi for Fortis deal
Malaysia's IHH Healthcare announced on Thursday that its unit was seeking compensation from Japan's Daiichi Sankyo of up to 109.3 Billion Rupees ($1.25 Billion) for its stake purchase in India's Fortis Healthcare. Northern TK Venture, a subsidiary of IHH Healthcare had filed a lawsuit in October 2023 against the Japanese pharmaceuticals company, claiming that it caused the company losses by preventing the open offer to purchase a stake in Fortis Healthcare. Daiichi had originally claimed that NTK would be entitled to damages of up to 130.99 million yen (originally 20 billion yen) if Daiichi fails to pay by November 2023. NTK claims compensation between 4,24 billion rupees to 109,3 billion rupees after an expert's report. Media reports claim that IHH Healthcare, Asia’s largest healthcare group had halted an open offer to purchase an additional 26% of Fortis following a Daiichi contempt complaint filed against Fortis' founders. Daiichi did not respond immediately to a comment request. ($1 = 87.5600 Indian rupees) ($1 = 152.6800 yen) (Reporting by Shivangi Lahiri in Bengaluru; Editing by Mrigank Dhaniwala)
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Caterer Compass' first-quarter revenue beats expectations
Compass announced a 9.2% organic revenue increase in the first quarter, beating market expectations. The British catering group was able to benefit from strong demand for its canteens across North America and Europe. The largest food catering company in the world, which provides services to offices, hospitals, and universities on about 30 markets, has maintained its outlook for this year. The London-listed company has benefited from global companies requiring their employees to return to the office, which in turn boosts canteen spending. Employees who are cost-conscious often prefer to eat at home to more expensive external options. Karl Green, an analyst at RBC Capital Markets, said that "resilience is the key positive in Europe against a difficult macro backdrop." Compass, despite being smaller, clearly outgrew other listed companies. Compass beat the analysts' estimates of 8.8% in its first fiscal quarter, which is three months before December 31. This excludes currency movements, acquisitions, and closures. Compass' biggest market, North America, grew organic revenues by 9.7%, while Europe grew by 8.4%. Sodexo, a French competitor, and Aramark, a U.S. company, both reported organic revenue growth in the first quarter of 4,6% and 5% respectively. Elior, based in France, has yet to release its first-quarter results. Compass shares, that hit a record-high earlier this week, fell 0.9% by 0917 GMT. The company warned that currency movements would reduce revenue for the full year to $558 million at current rates. Compass stated that they are "even more focused" and have leveraged investments in capex, M&A and other areas to support future growth. The group has been focusing on its core markets, including Britain, France, and Norway. It has also exited non-core markets, such as China and the UAE.
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Vattenfall CEO: Europe needs new power grid interconnection and output
The CEO of Swedish utility Vattenfall stated on Thursday that Europe must increase its capacity for electricity transmission and generate fossil-free energy to ensure security. This was in response to the sharp drop in earnings reported by the company during the fourth quarter. Vattenfall, a state-owned company, reported earnings before interest and taxes of 531 millions Swedish crowns (48.66 dollars), down from 4.5 milliards crowns the year prior. The net profit dropped to 5.1 billion crowns, down from 5.7 billion crowns one year earlier. CEO Anna Borg said that the drop in prices was due to lower spot electricity prices in the Nordics which fell 46% on an annual basis, as well as higher provisions made for nuclear operations at the end such dismantling spent fuel and disposing of it. Borg also said that the company was able to offset a portion of the impact of price by selling the production in advance at higher prices. Vattenfall has announced that it will invest 170 billion crowns in the next five-year period, mainly on grid and wind projects and new nuclear power. Borg stated that Europe requires more transmission capacity in order to allow power to flow more easily across markets and optimize prices, as well as more production of fossil-free electricity. She added, "From a kind of independence and security perspective because there is also a need in the geopolitical framework to be more independent in Europe generally." Vattenfall stated that the outlook for demand is also challenging. Some companies are holding back their investment because of an uncertain political and market environment. ($1 = 10,9129 Swedish Crowns) (Reporting and editing by Terje Solsvik).
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India's Prism Johnson posts profits after four consecutive quarters of losses on tax gains
Prism Johnson, an Indian manufacturer of construction materials, reported a profit on Thursday for the first quarter in five. Tax gains from previous periods helped. The company posted a profit of 481.2 millions rupees ($5.5m) during the period of October to December, compared to a loss last year of 34.5million rupees. After the results were announced, the shares of the Hyderabad-based firm spiked to up to 8% before losing their gains. The company's pre-tax loss increased to 337.1 million rupies, up from 89.7 millions rupies a year ago. The company's net sales increased 6%, largely due to the strong performance of its tilemaking and insurance segments. This helped offset the weakness of its cement and ready-made Concrete businesses. The cement companies have reported mixed earnings for the first quarter of this year, as they struggled to deal with soft demand and low prices. The market leader UltraTech and its rival Adani Group cement businesses Ambuja, ACC were boosted by strong volumes, whereas the smaller company Dalmia Bharat was hit due to lower prices. Sales of cement, which accounted for 39% or so of the total, dropped by 2.5%. The revenue from the ready-made concrete business also fell by 6.5%. Other businesses offset the negative impact. Tilemaking grew by 4.8% while the insurance sector grew three-fold. ($1 = 88.5370 Indian rupees). (Reporting and editing by Rashmi aich in Bengaluru)
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Boliden, a Swedish miner, beats its core profit forecast but does not pay dividend
Boliden announced a higher-than-expected increase in its core earnings for the fourth quarter on Thursday, and raised its capital expenditure forecasts through 2025. This sent its shares up more than 3%, despite the fact that it had scrapped its dividend last year. Boliden’s operating profit, which excludes the revaluation its process inventory, increased to 3.81 billion Crowns ($348.8 Million) from 2.02 Billion Crowns a year ago, exceeding a consensus provided by the company of 3.59 Billion crowns. In its latest quarterly report, Swedish mining and smelting said that the company's results were primarily driven by production and acquisitions. Boliden CEO Mikael staffas stated in the report that "both copper and nickel are produced in Harjavalta and zinc is also produced in Kokkola." Boliden shares rose 3.6% early in the morning and were among the top gainers of Stoxx 600. Boliden has cancelled the ordinary dividends for 2024 in order to reduce the new shares expected as a result of the acquisitions by Lundin Mining of the Neves Corvo and Zinkgruvan Mines. Some analysts were confident that the dividend would be paid, even though they viewed the acquisitions before the earnings report as a possible risk. Boliden has increased its capital spending forecast for 2025 from 13.5 billion to 14 billion crowns, due to the rollover from 2024. The company announced that it would plan maintenance shutdowns in smelters for 2025. This would reduce the operating profit by 500 millions crowns. Boliden has resumed production at the Tara Mine in Ireland. The mine had been put on care and maintainance to address financial and operational challenges, since July 2023. After announcing a delay last year, the company said that it was nearing completion of its expansion project at Odda in Norway.
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Anglo Platinum set to see profits almost halve due to weak prices and restructuring costs
Anglo American Platinum anticipates that its headline earnings will drop as much as 46 percent in the year 2024 due to persistently low metals and costs associated with a demerger and restructuring. The top producer of platinum-group metals, used to reduce emissions from motor vehicles, said that it expected headline earnings of between 7,6 billion rand (US$408.8 million and $484.11 million) for the year ending December 31. This is down from 14 billion in 2023. Amplats reported that the dollar price of palladium, rhodium, and platinum fell by 24 and 30 percent, respectively, over the last year. Craig Miller, the CEO of Anglo American Platinum Mines, said on Wednesday that by mid-year it is expected to separate from Anglo American. The spinoff was part of a restructuring strategy to combat a takeover bid by BHP, the larger rival. It aims to concentrate on copper and iron ore assets that are more profitable. Amplats reported that it incurred costs of 3.5 billion rand as a result of operational and corporate restructurings including the demerger.
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China and Pakistan to increase cooperation in infrastructure and mining projects
China and Pakistan are upgrading and reconstructing Pakistan's rail network, and developing its Gwadar Port, while Chinese firms can invest in offshore oil and gas development of the South Asian nation, reported the official Xinhua News Agency on Thursday. Asif Ali Zadari, the president of Pakistan, is visiting China between February 4-8. He will attend the Asian Winter Games opening ceremony. Since 2013, Chinese financial and investment support has been a boon to the struggling economy of Pakistan. Both countries share a long-standing distrust of India, their common neighbor, and want to protect themselves from U.S. influence in the region. Pakistan and China acknowledged the importance of Pakistan’s “Gwadar Port” and agreed to fully unlock its potential as a node key for connectivity and commerce, Xinhua reported quoting a statement jointly issued by the two countries. Chinese-funded companies will be encouraged to "carry on mining investment cooperation in Pakistan", and work together in the areas of terrestrial and marine geological resource. Pakistan welcomes Chinese firms to participate in the exploration of oil and gas offshore in Pakistan. The China-Pakistan Economic Corridor, a project grouping together projects grouped by the China Pakistan Economic Corridor (CPEC), has attracted thousands of Chinese nationals to work on it. The $65 billion investment is part President Xi Jinping’s Belt and Road Initiative. It is designed to expand Beijing's global reach via road, rail and water. Reporting by Farah master and the Beijing Newsroom; editing by Himani Sarkar, Saad Sayeed
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Valencia floods spark race for funding to boost climate resilience in Spain
Spain wants to get European approval for repurposing more than one billion euros in post-pandemic recovery money to make Valencia stronger against climate change. The Mediterranean region was hit by heavy rains and other severe weather last year. The talks began a few months after torrential rainfall in October caused flooding in commuter towns east of Valencia that claimed the lives of over 220 people. Experts claim that the floods were made worse by the patchy defences. Many of these had been planned for improvements decades ago. Reallocated EU Funds would only be a small portion of what Acciona, Sacyr, and Cox Group in Spain expect will be a wave of new investment in the Spanish water industry. These companies are mainly active in countries that face water shortages, such as Saudi Arabia or Morocco. But now there is an opportunity to grow and alleviate some of the misery caused by communities. Industry insiders, corporate representatives and experts have told us that water investments are now a priority on the local and national political agenda. In December, Prime Minister Pedro Sanchez stated that "Spain was one of the most vulnerable countries to climate change". The European Commission determined that extreme weather in Spain has cost 7.7% of its GDP over the past 40 years, three times more than the European average. It also poses a risk to sectors as critical as agriculture and tourism. Economic Minister Carlos Cuerpo stated that the EU funds Spain is seeking permission to repurpose will be used to repair damaged water networks in the Valencia Region, as well to develop desalination plant in response to prolonged droughts which damage its large agriculture sector. The Economy Ministry stated that negotiations with the European Commission regarding the allocation of 1,5 billion euros ($1.56billion) previously allocated to other projects continue with no end date set. According to industry sources, Spain has allocated 3 billion euro for water projects out of the 77 billion euro in European Recovery Funds that the EU has disbursed in the last four years. Sara Aagesen, Minister of Environment and Ecological Transformation, told a Congress committee last month that her government is committed to financing the rebuilding and repair of Valencia's water system and the completion of urgent hydrology work in the region. She announced that her Ministry would establish an observatory for water consumption and plan to double the budget allocated to projects to increase the water supply through desalination and reuse plants throughout the country. Aagesen's Ministry declined to give any further details about the projects or how they would be funded. Companies Expect More Investment In 2024, a PwC report focused on Spain’s investment in its urban water system found that it was underspending by 5 billion euro a year, in part due to the limited budgets of the state, and trailing other European nations such as Portugal Italy France and Germany. Urban water cycles are primarily concerned with the purification, distribution, sewerage and treatment of water. Eduardo Campos who heads Sacyr’s water business said that he expects the Valencia floods to be a turning-point. He added of hydraulic and flooding mitigation works such as clearing riverbeds from debris: "These projects are necessary, (even if they're) expensive and not beautiful." Campos stated that Sacyr has already begun evaluating the cost of repairing the sewage and water networks damaged by the Valencia flood. He estimated that the repairs needed to be made urgently would amount to more than 350 millions euros. Campos said that Spain has a large growth potential, given the increasing need to reuse wastewater and digitalise water management. Manuel Manjon Vilda is the chief of Acciona’s water business. He said that there are many potential projects for water infrastructure in Spain. He said that the lack of money and political will was the main obstacle to implementing a 15-30 billion euro investment plan. It will take some time for new projects to be realized, even with increased political will. According to Spanish water company executives, it takes an average of three years for water projects to be approved. This is due to slow coordination between the national, regional, and local governments. The Mediterranean Coast, from Catalonia up to Gibraltar, is experiencing a severe water shortage. Last year, the authorities in tourist-friendly Barcelona allocated half a billion euros for two desalination facilities near the city coast. The regional government of southern Andalusia, which is the world's capital for olive oil, launched in November a 400 million-euro plan to double the amount of water recycled by the region by 2027. $1 = 0.9591 euro (Reporting and editing by Aislinn, Frances Kerry, and Alison Williams).
Prices of gas in Europe rise amid lower temperatures
The wholesale gas prices in the Netherlands and Britain rose Thursday morning, as temperatures are expected to drop tomorrow and next week.
The benchmark front-month contract for the Dutch TTF hub at 0841 GMT was 0.87 euros higher, at 54.27 Euro per megawatt (MWh).
On Monday, the contract reached its highest intra-day level of 54.61 euro/MWh. This is its highest level since November 2023.
The Dutch contract for the month of April rose 0.63 euros to 53.88 euro/MWh. In comparison, the British contract for front-month increased by 1.55 pence at 132.00 pence/therm.
The average temperature in North-West Europe is expected to drop by 0.4 degrees Celisus the day before and by 0.5C the following week. The average temperature in Britain will range between 2-5C over the next couple of weeks. This is up to 3C lower than normal seasonal temperatures.
The wind generation forecast for tomorrow is expected to be higher, which should reduce the demand for gas in power plants.
As maintenance on the Njord field is now complete, Norwegian exports are up. Send-out of liquefied natural gases (LNG) is expected to be solid.
The two tendencies seem to be in balance. Ulrich Weber, LSEG's gas analyst, said that the colder temperatures forecast will be most important and limit the downside.
The benchmark contract on the European carbon markets was down by 1.02 euros, at 79.86 euro per metric ton.
(source: Reuters)