BizNews Briefing: Maimane, De Beer; Piet Viljoen; Taxi Mafia; Hizbollah; York Timber; Renergen
This episode of the BizNews Briefing provides an update on the two big news stories of the moment; the political manoeuvring in Tshwane, and the assassinations of Hizbollah leadership by Israel. We hear from Mmusi Maimane, Neil de Beer and Piet Viljoen on the implications of the collapse of the Tshwane coalition; and from the FT on what's next for Hizbollah. Plus Johann Ferreira of InterCape, whose resistance to SA's Taxi Mafia has generated global headlines; and Viljoen's insights into York Timber and Renergen, which reported today.
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Business news headlines – 30 Sept
- Renergen, the Free State-based gas company positioning itself as one of the world's leading helium producers, reports that its production chain is now fully operational. Its quarterly results to end June, released today says the company's Liquified Natural Gas production remained stable at 1,249 tons, despite system shutdowns for helium system commissioning. Two high-helium exploration wells were completed, with geological data confirming a new gas-bearing fault for future drilling. The share price was steady after the release of results – at the current R10.84c it is down 36% in the past 12 months.
- The 4 500 retail investors in Sabie-based York Timber have seen the share price rise 40% in the past year – but their wait for a dividend continues with the company once again passing the payment in the year to end June. But there is room for optimism after earnings per share rebounded from a loss of 77c to a profit of 29c; but a sharp increase in working capital saw net debt rising R70m to R406m. The auditors approved an 11% increase in the value of the forests, raising net asset value to 608c a share – more than do8ble the current share price of 225c.
- Cement manufacturer PPC, which is in a turnaround process, today reported that for the four months ended July group revenue dropped 2% on 5% lower volumes. Zimbabwean revenues fell 4.5% but the subsidiary repeated its US$4m dividend, although this was declared in September and is thus outside the reporting period. The company says despite improving local sentiment and declining interest rates, large-scale infrastructure and retail developments in South Africa remain scarce. PPC's outlook for its SA and Botswana group remains subdued as it focuses on turning around its cement businesses to boost profitability. PPC's shares fell 2% on the update, but are up 26% in the past year.
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