Star 2021-07-28

Siphelele Dludla siphelele.dludla@inl.co.za S&P GLOBAL Ratings has warned that the recent civil unrest could slightly dent the expected rebound in gross domestic product (GDP) for 2021. In a report yesterday, S&P said the civil unrest was a clear example of wide income inequality, increasing poverty levels and poor access to health services. South Africa experienced widespread looting of retail outlets and manufacturing facilities in KwaZulu-Natal and Gauteng following the arrest of former president Jacob Zuma. The unrest is estimated to have cost the country R50 billion in lost output and placed at least 150 000 jobs at risk. S&P’s corporate ratings director, Omega Collocott, said the unrest had also severely hampered supply chains because of blocked road and rail transportation corridors. Collocott said the damage to elements of the country’s…

Transnet is getting ready to lift force majeure in staggered way Banele Ginindza banele.ginindza@inl.co.za TRANSNET said yesterday that it was considering lifting a force majeure after five days of downtime that involved only using systems that could be operated manually to cope with a backlog of trucks, ships and empty dockyards. In a statement yesterday, Transnet said it expected that some applications may continue to run slowly over the next few days, while monitoring systems were brought back in a staggered manner, to minimise further risks and interruptions. “It is expected that some applications may continue to run slowly over the next few days, while monitoring continues. All operating systems will be brought back in a staggered manner, to minimise further risks and interruptions,” the group said. Logistics groups, including…

Siphelele Dludla siphelele.dludla@inl.co.za STATE-OWNED low-cost carrier Mango Airlines yesterday temporarily suspended all flights because of outstanding payments of more than R57 million to another state-owned company, Air Traffic and Navigation Services (ATNS). ATNS provides air traffic, navigation, training and associated services within a large part of the Southern Indian and Atlantic Ocean, comprising at least 10 percent of the world’s airspace. Mango’s grounding of its flights left hundreds of customers stranded at airports across the country, because it happened without warning. Mango said it would offer customers vouchers to help with alternative travel arrangements on other airlines. In a statement, Mango’s acting chief executive, William Ndlovu, apolo- gised for the inconvenience. “We plan to resume normal operations as soon as possible,” Ndlovu said. “We ask for calm and patience as…

Capital & Counties resumes its interim dividend distribution Edward West edward.west@inl.co.za UK-BASED Capital & Counties (Capco) has recommenced dividend distributions with a 0.5 pence per share distribution for the six months to June 30 after UK Covid-19 government restrictions were lifted and retail and hospitality customers fully reopened. Rent collection improved in the first half for the group that holds most of its assets in Covent Garden in London, and 65 percent of June quarter had been collected adjusted for payment plans. Customer support was being provided on a case-by-case basis and was expected to reduce with easing of restrictions. The total property value of £1.8 billion (about R37bn) represented a 5.1 percent decrease (like-for-like) from the value at the end of December 2020. Net rental…

Kumba contributes almost R10bn to fiscus Dineo Faku dineo.faku@inl.co.za KUMBA Iron Ore contributed almost R10 billion to the fiscus during the half-year to the end of June, after delivering record financial returns and paying shareholders 100 percent of headline earnings, despite operational problems. Kumba declared an interim cash dividend of R72.70 a share, an increase of 271 percent compared with R19.60 a share a year earlier, representing a payout ratio of 100 percent of headline earnings. Kumba, an Anglo American plc subsidiary, said yesterday it was playing its part in South Africa’s economic recovery by contributing R9.2bn in income tax and mineral royalties in the first half of the year. Chief executive Themba Mkhwanazi said Kumba paid the fiscus R6.8bn in income tax and R2.4bn in mineral…

Sasol delivers on output targets despite bad weather and Covid Dineo Faku dineo.faku@inl.co.za SASOL, the JSE-listed petrochemicals giant, has delivered its production targets in the year ended June 2021 despite the Covid-19 pandemic and adverse weather conditions, it said in a statement yesterday. Total chemical sales volumes were only 3 percent lower compared to the prior year and largely in line with previous market guidance of between 2 and 4 percent lower, Sasol said. This was despite adverse weather events in both the US and South Africa impacting production, the divestment of the US Base Chemical assets and the continued impact of the Covid-19 pandemic. The American chemicals assets grappled with two hurricanes and an Arctic winter storm, which had a combined impact of 300 000 tons,…