Here’s what caught our attention on Wednesday:
1. Denel gets loan to pay salaries
State-arms manufacturer Denel received a temporary reprieve on Tuesday evening with a loan to pay employees their full June salaries. The announcement was made by public enterprises minister, Pravin Gordhan, who said a lender had come to the assistance of the SOE. The name of the benefactor was not provided. Denel had issued a statement on Monday informing employees they would only receive 85% of their salaries, citing a cash flow crisis.
2. Sephaku Holdings results
Cement manufacturer, Sephaku is reporting a marginal increase in headline earnings per share to 21 cents for the year ended March 31, 2019, from 20 cents in 2018. The group’s consolidated revenue amounted to R836 million while net profit after tax amounted to R44 million. The company’s CEO, Lelau Mohuba says tough operating conditions were recognised in the building and construction materials sectors, adding that a contraction in gross fixed capital formation proved the ‘weak demand environment’, which contributed to its performance.
The group says it is focusing on lowering debt, defending its share of the market and improving cost efficiencies.
3. PPC results expected
Cement manufacturing company, PPC is expected to release its results for the year ended March 31, 2019 on Wednesday. In a trading statement dated, June 21, 2019, the company said it expects headline earnings per share to increase by between 33 and 53% and basic earnings per share to increase by between 70 and 90%.
The group also highlights that gross debt levels have reduced since the release of its last financial results in November 2018.
4. SA working on a new oil and gas policy
Calls by potential investors to shield South Africa’s energy industry from a long-running debate over laws that apply to mining exploration has prompted the Department of Energy to start working on a policy to govern the development of oil and gas resources in the country. Bloomberg is reporting that the finalisation of the oil policy has become vital given Total’s oil discovery off the coast of South Africa in February.
Energy minister, Gwede Mantashe says the department has begun the process of developing a Petroleum Resources Development Bill.
5. Stats SA report
Statistics South Africa will be publishing its financial census of municipalities report for 2018 on Wednesday. The report delves into municipal revenue streams or contributing factors to municipal revenue, which constitutes grants and subsidies received, electricity sales, property rates received and more.
The report also looks into municipal expenditure patterns, which constitutes employee related costs, electricity purchases and more.