Latest News
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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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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.
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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
In Cyprus, schools have started a "frying pan movement" to collect cooking oil as fuel
Scientists from Cyprus have recruited children to recycle used cooking oils into biofuel as part of an international-acclaimed initiative.
The "Tiganokinisi" initiative, or frying pan, visits schools with a caravan. It performs experiments and encourages the children to bring used cooking oil to school. This is collected, filtered, and then sold to be used for biodiesel.
Cyprus wants to play its part in tackling a global problem that sees millions litres used cooking oil being thrown out every year. This often clogs drains, causes fires at landfills or pollutes underground water.
The logistics of collecting this half-litre cooking oil (from each of our homes) are enormous, said Xenia Lizidou. She is the chairperson of the AKTI Project and Research Centre. This local NGO, involved in environmental education, coordinates the collection and sale of the oil.
She said, "We came up this concept where schools become hubs for collection."
Loizidou explained that the proceeds are split amongst participating schools based on the amount of oil donated. Children also have a voice in deciding which green projects will receive money.
The funding includes photovoltaic panel installations in schools, water features and aromatic gardens.
In 2018, the project was adopted as part of the national education curriculum and is now being used by more than 80,000 students per year.
The European Commission has recognized it as one of Europe's best social innovation practices, and the European Education Body GENE has praised its quality in global education.
The project received a boost when U.S. energy giant Chevron agreed to finance the entire cost of the caravan. It employs young researchers and has visited over 500 schools.
Kristian Svendsen is the regional manager of Chevron for Egypt and Cyprus. He said, "We wanted to be a partner that was positive in all communities where we operated... We quickly realized this was an excellent fit for us."
Loizidou stated that about 10% of the 2,000 tonnes domestic cooking oil consumed in Cyprus each year is collected.
"We want children to understand that waste is not a waste. "Waste has value and that is the concept of a circular economic system," said Loizidou.
(source: Reuters)