Latest news with #R2.2bn
Yahoo
a day ago
- Business
- Yahoo
Scatec wins preferred bidder status for Haru BESS, South Africa
Renewable energy company Scatec has been awarded preferred bidder status for the Haru battery energy storage system (BESS) project in South Africa. The project, which totals 123MW/492 megawatt-hours (MWh), is part of the third bid window of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP), led by the Department of Mineral Resources and Energy. Under a 15-year agreement, Scatec will receive payments for making the storage capacity available to the National Transmission Company of South Africa (NTCSA), which will use it to balance the grid. The estimated total capital expenditure for the project is approximately R2.2bn ($120m), with Scatec's engineering, procurement and construction (EPC) contracts accounting for roughly 80% of the cost. Scatec CEO Terje Pilskog said: 'Today's award reaffirms our standing as a leading renewable energy player in South Africa. We applaud the South African Government's commitment and dedication to the renewable energy procurement programmes. Battery energy storage will continue to play an important role in the energy transition, and we will continue to be at the forefront across our core markets.' The project financing will consist of 90% non-recourse project debt, with the remainder covered by equity from the owners. Scatec will own a 50.01% stake, Stanlib's Greenstreet and Redstreet Funds will hold 44.99% and a Community Trust will maintain a 5% share. Scatec will also provide engineering, procurement and construction (EPC), operations and maintenance (O&M) and asset management (AM) services. Scatec sub-Saharan Africa GM and EVP Alberto Gambacorta said: 'Dispatchable energy and grid infrastructure are now more important than ever, in the pathway to unlock the sustainability of South Africa's current and future energy system.' The Department of Mineral Resources and Energy anticipates commercial close by the end of the first quarter of 2026, with the project located in Free State Province. "Scatec wins preferred bidder status for Haru BESS, South Africa" was originally created and published by Energy Monitor, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
IOL News
26-05-2025
- Business
- IOL News
Barloworld's interim earnings drop amid onging Zahid Group takeover attempt
A 550 kVA Cat C15 diesel generator set being assembled at Barloworld Power's Boksburg facility. The group is experiencing tough trading conditions in line with macro-economic volatility in the markets where it operates, especially in its Russia business, where sales has decline due to the impact of sanction. Image: Supplied Barloworld, still the subject of a controversial takeover bid by Saudi Arabia-based Zahid Group and CEO Dominic Sewela, nearly halved its interim dividend to 120 cent a share (210 cents per share). This followed a 20.5% decline in headline earnings per share (HEPS) to 423.2 cents for the six months to March 31, with the results impacted by a weak performance in the Russia business due to the impact of sanctions in that country. Many JSE listed companies exited their businesses in Russia after the onset of the war in Ukraine, but Barloworld opted to retain Vostochnaya Technica (VT). Excluding VT, normalised HEPS was flat at 356 cents per share. Sewela said trading conditions were broadly aligned with their expectations of stable to modest economic growth, guarded optimism, moderated by cyclicality and subdued commodity markets. "Barloworld has shown remarkable resilience, especially excluding the VT results. The positive impact of the restructuring of Ingrain in 2024 is especially evident. We continue to navigate the evolving environment by pulling the levers within our control,' said Sewela in a statement. Regarding the Zahid takeover bid that was initially rejected by shareholders, an announcement about the requisite 90% acceptances from shareholders to be received in terms of a standby offer, or whether the bidding company wishes to waive the threshold, was expected to be made by June 30, 2025. Group revenue fell by 5.8% to R18.1 billion, weighed down by a significant reduction in VT revenue. 'The board remains vigilant in overseeing the investment in VT and will conclude and communicate an official strategy in due course,' the board said in the results.. Earnings before interest, tax, depreciation and amortisation (EBIDA) fell by 9.1% to R2.2bn. Excluding VT revenue EBITDA increased by 3%. The EBITDA margin fell to 12.4% from 12.9%. Excluding VT, EBITDA margin expanded from 11.9% to 12.5%. The group invested in working capital to support growth objectives and used free cash flow to reduce floor plans, which were more expensive than its available facilities. As a result, net debt increased by R1.6bn to R4.8bn. Net asset value per share increased to 9 235 cents from 9 111 cents. Solvency and liquidity remained strong. On the outlook, Sewela said that since the end of the first quarter, financial markets and commodities were very volatile, rapidly reacting to developments regarding US tariffs and associated uncertainties. 'In such an unpredictable environment, effective risk management and scenario planning are crucial, especially for complex supply chains as well as the fragile geopolitical state of affairs.' The board said several major South African mining corporations reported that, despite prevailing market turbulence, primary commodity trade routes were largely unaffected due to the exclusion of platinum group metals, coal, gold, manganese and chrome from tariff implications. 'We continue to assess the potential impact of tariffs on our iron ore, steel, and diamond customers.' Some reorientation and dislocation of physical trade flows was anticipated in the near future, which could present both opportunities and challenges for Barlworld's customers. 'The potential consequences of slower economic growth and a fragmented trading environment may be more significant. The future effects of tariffs on our business remains uncertain, and we are mapping out the medium- to long-term ramifications for our business,' the board said. The US Department of Commerce's Bureau of Industry and Security (BIS) had extended a deadline to September 2 for Barloworld to complete an investigation on potential export violations. VT's EBITDA fell 68.1% to R133 million. Operating profit of R104m decreased by 73.1% compared to the prior period. VT was expected to trade at breakeven levels as the structure was optimised for lower activity levels. VT was self-sufficient in terms of its funding requirements. EBITDA for Equipment Southern Africa fell 1.9% to R1.3bn. Operating profit declined 15.1% - the margin reduction resulted mainly from changes in the sales mix, from lower aftermarket activity.
IOL News
27-04-2025
- Business
- IOL News
Unpacking the R2. 2 billion guarantee dispute surrounding Ithala Bank
Ithala Bank is in a protracted legal battle with the South African Reserve Bank's Prudential Authority (PA) which has filed papers for the bank's provisional liquidation . A dispute has ensued over theR2.2billion guarantee needed for IthalaBank, with the National Treasury (NT)warning that its primary task is to protectcustomers and not to bail out the Treasury described its stance asa standard approach it has applied insimilar situations to safeguard customersof other embattled financial institutions. This statement follows revelations that the KwaZulu-Natal provincial govern-ment has approached the Treasury to enquire about the guarantee. Senior management of Ithala recentlyinformed members of the provinciallegislature that, despite negotiations with the Treasury over the guarantee, it resolved to give the guarantee to the SA Reserve Bank instead of the province. The Mercury understands that opinions differ on what the guarantee is for and how it should be utilised. The province believed it could find a commercial bank to take over the deposits of Ithala, and the guarantee was to help facilitate that process and guarantee that commercial bank, as it would have been taking over a liability. Ithala Bank, owned by the provincial government, is facing liquidation following an application brought by the Prudential Authority via a Repayment Administrator (RA). Its functions have been taken over by the RA. Dr Thulani Vilakazi, the Group CEO of Ithala Bank, recently briefed the finance portfolio committee about a letter from the Ministry of Finance indicating that the bank's liquidation must proceed. This letter was a communiqué from the Treasury to the Reserve Bank. During the recent briefing, Vilakazi revealed that Treasury had addressed critical matters in a letter, including the guarantee sought by the province, which would have allowed customers access to their accounts. Ithala Bank customers have not had access to their accounts for months. 'We had an engagement with the premier two weeks ago, and we learned that the minister of Finance had issued a guarantee of approximately R2.2bn;however, the guarantee is not in favour of the province but rather the Reserve Bank. In our interpretation of the communiqué issued by the minister, it is clear that the (letter recommends) that liquidation process must go ahead. They must liquidate our assets and pay out the depositors,' said Vilakazi. KZN Finance Minister Francois Rodgers expressed awareness of the changing stance and noted that the guarantee now goes through the Reserve Bank.'As Treasury, we are not happy. The national ministry has continually changed the goalposts. Every day that passes, the people who have money with Ithala are the victims. 'Initially, the province proposed that the guarantee be given to the province in the form of a loan to secure the deposits in Ithala Bank, with Ithala and the province responsible for the interest on that loan. This arrangement would have allowed the commercial bank and Ithala to work together to ensure that depositors have access to their funds,'said Rodgers. He said the court case to liquidate the bank should proceed, adding that they were not fearful of the process, as 'the bank's assets exceed its liabilities, which means that the bank cannot be liquidated'. KZN Premier Thami Ntuli said the letter was directed to the Reserve Bank,and it was better placed to comment on its contents. However, he indicated thatthere were aspects that unsettled theprovince.'We are in the process of writing tothe minister asking for clarity on someof the things that we saw in that letter.' The Treasury said: 'The framework under which the National Treasury pro-vides financial support to reduce the harm being suffered by ordinary depos-itors at Ithala as a consequence of the liquidation application is defined in pastpractice and formalised in law.'The National Treasury has applieda consistent approach to providingresources to depositors affected byfinancial sustainability issues faced by adeposit-taking financial institution. This action required that financial support beprovided to the depositors and not theshareholder.' The National Treasury said this approach was consistent with the cov-erage afforded under the Deposit Insur-ance Scheme and support provided to the depositors of Habib Bank, African Bank, Ubank and VBS. In each case, the legal responsibility of the minister relates to acting in the interest of depositors. The Treasury made it clear that the action being taken was only in relation to depositors and not a bailout of the provincially owned entity. 'Ithala is owned by the KwaZulu-Natal Provincial Government, making it the financial responsibility of the KZN Provincial Government regarding any guarantees and/or financial injections. "National Treasury focus is on ensuring that customers do not lose their hard-earned deposits and are not forced to go even longer without access to their funds,' it said. THE MERCURY
Zawya
07-03-2025
- Business
- Zawya
Banking, retail and telecoms power South Africa's brand value to over $33bln in 2025
In 2025, the combined brand value of the Top 100 South African brands soared to R688.6bn, with banking, retail, and telecoms accounting for more than 62% of the total brand value., as is often the case in emerging markets. This underscores the important role that the South Africa's services sector plays in the economy and daily life. Checkers is one of SA's leading retail brands. Every year, Brand Finance ranks 5,000 global brands, with the 2025 South Africa Top 100 Report highlighting the most valuable and strongest local brands. - Brand value is the net economic benefit a brand owner would achieve by licensing the brand in the open market. - Brand strength is the efficacy of a brand's performance on intangible measures relative to its competitors. Twelve banking brands contribute 24% to the rankings, totaling R168.7 billion, with five in the Top 10. Retail follows at R141.3bn, with 26 brands, the highest from any sector. Telecoms, with six brands, adds R100.5bn. Despite fierce competition in their respective sectors, new entrants include TymeBank (R3.0bn) at 46th, African Bank (R1.7bn), and Boxer (R2.4bn), bolstering the banking and retail sectors. Another standout newcomer in the South Africa 100 2025 ranking is the Springbok brand, making its debut with a brand value of R2.2bn, ranking 50th. This comes as the Rainbow Consortium, backed by the owners of the Bulls, Stormers, and Sharks, recently proposed an alternative deal to the Ackerley Sports Group (ASG) offer of $75m for a 20% stake, which failed last year. The Rainbow Consortium proposal includes an Expression of Interest (EOI) to manage and commercialise the iconic Springbok brand's commercial rights. Some of South Africa's retail, banking, and insurance brands also rank among the strongest globally. Checkers, Clicks, and Pick n Pay lead in brand strength, Capitec is the strongest banking brand, while OUTsurance leads in insurance. Brand Finance celebrates South Africa's brand success in a challenging yet thriving market. South Africa's Top 10 brands rank among the world's strongest The Top 10 South African brands collectively boast a value of R295.2bn, contributing over two-fifths of the total ranking value. With a brand value of R50.7bn, MTN, the country's most valuable brand since Brand Finance commenced the study of South African brands in 2012, retains its top position despite economic volatility and inflationary and regulatory challenges in the Nigerian market. Despite this, Nigeria remains a large market for MTN with a significant subscriber base. Vodacom, valued at R43.9bn, and Standard Bank, valued at R37.8bn, hold the second and third positions, respectively, with their brand values supported by their continent-wide footprints. The banking sector dominates, with First National Bank (R29.2bn), Absa (R27.3bn), Nedbank (R20.3bn), and Investec (R20.1bn) claiming the top spots. Amongst the top 10, retail brands are now represented by Checkers (brand value up 23% to R23.5bn), Woolworths (brand value up 17% to R22.2bn), and Shoprite (R20.1bn). The growth of Checkers and Woolworths is underpinned by increasing brand strength, resulting in higher brand revenues. This demonstrates the recovery of domestic retail brands due to improved consumer power and increased spending. The prominence of telecom, banking, and retail brands in brand value highlights their significance in South African consumers' lives. The growth of these brands shows that, despite intense competition, South African brands rank amongst the strongest globally, reflecting the high quality of the services and products they offer. Jeremy Sampson, chairman, Brand Finance Africa commented on the 2025 South Africa Top 100 Brand rankings: 'Brand Finance has been producing rankings globally for over thirty years and in South Africa since 2013. All rankings prepared by Brand Finance are totally compliant with the two relevant international standards produced by the ISO (International Standards Organisation). Arguably the main drivers of growth of a country are its top brands, invariably owned by the private sector. Brands that are sought after create jobs, make a profit, pay taxes, create demand, become valuable assets and act as ambassadors for the nation. Something to be celebrated, supported and nurtured.' South Africa's retail giants outperform global brands in 2025 ranking The South Africa Top 100 2025 ranking shows significant shifts, with retail brands leading over banking. Checkers, Clicks, and Pick n Pay occupy the top three spots, while Capitec (5th) and First National Bank (8th) represent banking, and OUTsurance (6th) and Old Mutual (10th) represent insurance. All Top 10 brands earned AAA+ ratings, the highest awarded by Brand Finance, outperforming global counterparts like Walmart in the US, Marks & Spencer in the UK, and Coles in Australia. Capitec is the 6th strongest global banking brand, while OUTsurance and Old Mutual are among the top global insurance brands. Checkers, the strongest South African brand in 2025, rises from third place with a Brand Strength Index (BSI) score of 97.7, driven by outstanding consumer perceptions and satisfaction with its pricing regime. Clicks ranks second with a BSI of 97.0, followed by Pick n Pay in third with a BSI of 96.8. Pick n Pay's strong performance reflects improvements in 'brand I know well', 'reputation', and several other key brand metrics, though it ranks slightly lower in 'brand I love' and overall recommendation. Despite boardroom issues, these concerns have not hugely impacted consumer perceptions. Other retail brands in the Top 10 include Mr Price, Dis-Chem, and Woolworths. Brand Finance's research shows South African consumers rate some local retailers higher than international ones, highlighting the strength and quality of South Africa's retail sector in a market where a variety of options are available. MTN remains South Africa's most valuable brand despite challenges Telecoms giant MTN holds its position as South Africa's most valuable brand in 2025, valued at R50.7bn, despite a 26% decline. The telecom giant maintains a lead of over R6 billion in brand value ahead of second-ranked Vodacom (R43.9bn). MTN's brand value decline is due to challenging business conditions, revenue losses, and increased risks in markets like Nigeria, (formerly its largest revenue source), and weakened brand strength. The Nigerian Naira depreciated by approximately 43% against the US dollar by August 2024, impacting MTN's performance, while the rand remained stable against the US dollar during the same period.. Despite these challenges, MTN remains the strongest telecom brand in South Africa, with a Brand Strength Index (BSI) score of 86.9, and an even higher score of 97.7 in Nigeria, indicating potential for future growth if conditions in the country improve. Capitec Bank: Fastest growing brand value in 2025 Capitec Bank is the fastest-growing South African brand in 2025, with an 81% increase in brand value to R18.6 billion, moving from 23rd in 2024 to 14th place this year. This growth is driven by sustained strong financial performance, particularly in digital banking, where the number of banking app clients rose by 21% between August 2023 and August 2024. This increase reflects Capitec's ability to innovate with digital, AI, and enabling technologies to accommodate a growing tech-savvy audience amongst its consumer base. Capitec's brand strength is also growing with the highest Brand Strength Index (BSI) score among South African banks at 94.6, ranking it fifth overall. The bank's expansion from previously underserved markets into middle-to-affluent markets, with business banking and insurance offerings, is boosting its profitability and consumer engagement. With top scores across key metrics, Capitec continues positioning itself as the bank that makes things simple for everyone. TymeBank: A brand to watch in 2025 TymeBank enters the South Africa Top 100 2025 ranking at 46th place with a brand value of R3.0 billion. Its digital-first, innovative approach in transactional banking sets it apart, especially as fintech competition grows. Launched in 2019, TymeBank operates without physical branches, partnering with retailers like Pick n Pay and Boxer to offer self-service account openings. Ranked second for 'value for money', 'transparent rates', and 'fairness' among retail consumers, TymeBank also excels in 'ease of use' and 'simplicity', surpassing more established banking brands. Nubank, a top digital bank ranked one of 2025's strongest global banking brands by Brand Finance, invested in Tyme Group, bringing in capital and expertise to support the growth of both GoTyme Bank in the Philippines and TymeBank in South Africa. If TymeBank capitalises on its shareholders' strength, it's a brand to watch. However, TymeBank faces competition from established players like Capitec, FNB, and Standard Bank, all of which rank higher amongst local consumers. Valuing sustainability perceptions Retailers Woolworths and Checkers top the Sustainability Perceptions score across sectors in the environmental, social and governance categories. Woolworths has long been recognised for its sustainability efforts and continues to communicate this through its initiatives, including a pledge for 100% green energy, promoting sustainable farming, and reducing plastic waste. MTN and Vodacom compete closely in all sustainability categories. Vodacom leads on social sustainability and governance. Healthcare and banking are among the top sectors for brand perception on governance, with Netcare and First National Bank earning strong net scores. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
