BHP in Bayside BEE deal with Hulamin taking 40%; New boss at Netcare UK

SENS at a Glance

Monday, 24 November 2014

• BHP Billiton (JSE mkt cap: R616bn) raised 2017 productivity gains target by $500m to $4bn a year. Better capital utilization will drop projected capex from $14.8bn to $13bn by 2016 with no impact on production. CEO Andrew Mackenzie says demerger will simplify the portfolio and the redesigned BHP Billiton will be an organization that “supports better productivity.” The 12 divisions will be broken into 30 operated assets “of varying sizes across a broader range of commodities.”

• Netcare (mkt cap: R50bn) prelims for year to end Sept: Adjusted HEPS +19.5%;Finaldivi +19.5%. Operating cash flow

  

  +15.6% to R4.4bn. Results reflect strong trading performance in SA and improved result from the UK. Net debt unchanged at R5bn after capex of R2bn. Demand for healthcare in SA expected to remain strong; secured R500m facility to introduce energy efficiencies and renewable energy projects; expect to save R1bn on energy in next decade. New CEO appointed for General Healthcare Group subsidiary in the UK, Jill Watts, formerly of Ramsay Healthcare. In UK no reflection of economic recovery yet in healthcare sector.

• Pioneer Food (mkt cap: R31bn) prelims for year to end September: Adjusted HEPS +37%; Divi +81%. Adjusted operating profit +46% to R1.68bn. Describes 2014 as “defining year” with brands strengthned and profit margins expanded. Net cash flow of R1.8bn; debt down from R1bn to R166m with gearing now 3% (2013: 15%). Bottling agreement with PepsiCo Inc will not be renewed. Quantum Foods unbundled and separately listed on the JSE on Oct 6, 2014.

• Hulamin (mkt cap: R2.2bn) to hold 40% in joint venture with KZN BEE firm Isizinda Aluminium to acquire the Bayside casthouse from BHP Billiton which will supply liquid metal directly in a five year deal. Hulamin has agreed a R10bn slab offtake agreement with Isizinda

• Prescient (mkt cap: R1.5bn) expects EPS and HEPS for the six months to 30 September 2014 to fall within the range of 3.55 – 3.65 cents per share (30 September 2013 actual: EPS 0.96; HEPS 2.96; restated continuing operations 3.38), it said in a trading statement. Its interim results will be published on 27 November.

• Quantum Foods (mkt cap: R814m) prelims for year to end September: HEPS of 11c (2013: loss 34c). Operating loss of R21m down from loss of R251m in 2013. Regards SA prospects as challenging with low economic growth, higher inflation and labour unrest. But new tariff regime on broiler meat and expected lower supply of eggs bode well.

• Moneyweb (mkt cap: R32m) non executive director Velile Mcobothi has bought 570 000 shares in the company at an average price of 32c.