Bottomline

GENEVA:

Mining giant Glencore posted higher first-half net profit on Wednesday, shrugging off a number of adverse factors, such as a corruption probe in the United States.

The Switzerland-based company reported net profit of $2.7 billion (2.3 billion euros) in the first six months of 2018, a 13-percent improvement over the same period last year.

That came despite the announcement from the US justice department last month that it was investigating Glencore’s operations in Nigeria, Venezuela and the Democratic Republic of Congo over possible money laundering and violations of the Foreign Corrupt Practices Act.

News of the US probe, which had sent Glencore shares plunging, followed reports that Britain’s Serious Fraud Office was also investigating the firm over its operations in DR Congo.

Meanwhile, Glencore in June had to settle a burgeoning legal dispute with its former partner in DR Congo, Israeli businessman Dan Gertler, who had threatened a multi-billion-dollar lawsuit.

Glencore was forced to temporarily stop paying royalties to Gertler once he was slapped with US sanctions over allegedly improper payments to DR Congo’s President Joseph Kabila. (AFP)

HONG KONG:

Hong Kong flag carrier Cathay Pacific said on Wednesday its losses had narrowed in the first six months of the year but warned global economic uncertainty would pose a challenge as the firm battles to revive its fortunes.

The airline posted a net loss of HK$263 million ($33.5 million), compared with a HK$2 billion loss for the same period in 2017.

That fell short of some analysts’ estimates as the firm was hit hard by rising fuel costs.

Cathay shares were down 1.82 percent at HK$11.86 at the close of trading in Hong Kong Wednesday.

Cathay has come under pressure from lower-cost Chinese carriers and Middle East rivals, which are expanding into Asia and offering more luxury touches.

It booked the first back-to-back annual loss in its seven-decade history in March. (AFP)

FRANKFURT AM MAIN:

German reinsurance giant Munich Re on Wednesday said it was on track to meet its full-year targets even as costly man-made disasters dragged down earnings in the second quarter.

The Bavaria-based group, whose main business is helping insurers hedge themselves against possible losses, reported net profit of 724 million euros ($840 million) between April and June, down from 729 million a year earlier.

Gross premiums written — the equivalent of revenue at an insurance company — slipped 5.2 percent to 11.2 billion euros, which the group partly blamed on negative currency effects and the termination of some large reinsurance contracts.

Munich Re said it paid out 501 million euros for major man-made catastrophes — up from 187 million euros over the same period a year earlier.

The single most expensive claim “by far” stemmed from structural damage to a hydroelectric power station in Colombia. (AFP)

LOS ANGELES:

Investors sent Snap’s stock on a rollercoaster ride Tuesday following the company’s Q2 2018 earnings release: Share prices for Snapchat’s corporate parent gained more than 10 percent immediately following the release on news that the company beat analysts’ revenue and earnings estimates, and that Saudi prince Alwaleed bin Talal had acquired a 2.3% stake in the company with a $250 million investment.

But the share prices gave up much of those gains soon after as the news sunk in that the company’s user base wasn’t growing as expected, with Snapchat losing daily active users quarter over quarter for the first time in its history. (RTRS)

COPENHAGEN:

Shares in Novo Nordisk fell on Wednesday after sales of some of its key drugs in the second quarter fell short of expectations and it said prices in the key US market would be lower next year.

The world’s top maker of diabetes drugs has entered a period of slower growth partly due to pricing pressure on the US market, which accounts for about half of Novo’s total sales.

US President Donald Trump has made lowering the cost of prescription drugs an issue for his administration and on Tuesday said he would make an announcement next week on reducing prices. (RTRS)

FRANKFURT AM MAIN:

German energy giant EON on Wednesday said it was confident of meeting its 2018 goals after winning new customers in the second quarter despite “fierce competition”.

The Essen-based group said net profit stood at 1.8 billion euros ($2.1 billion) between April and June, down from 3.2 billion a year earlier when the group unexpectedly benefited from a massive nuclear fuel tax rebate.

Group revenues fell from 9.0 billion euros to 7.7 billion year-on-year, which it blamed on new accounting rules and a “significant decline” in sales in some European countries and Turkey. (AFP)

THE HAGUE:

Dutch-Belgian giant food retailer Ahold Delhaize said Wednesday that it rang up a “solid” performance in the second quarter, with bottom-line profits rising 15 percent.

Ahold Delhaize, which describes itself as one of the world’s largest food retail groups, said in a statement it booked “a solid second quarter with increased sales and margins, unfavorably impacted by the timing of Easter.”

Chief executive Frans Muller said “our business continued to perform well and we remain on track with the execution of our strategy.” (AFP)

NEW YORK:

CVS Health beat Wall Street expectations for the secondquarter, helped by rising prescription sales, though a nearly $4 billion charge from one of the company’s businesses led to a loss.

The drugstore chain and pharmacy benefits manager said Wednesday that it has struggled to grow its long-term care business as much as it had expected after acquiring Omnicare in 2015. It cited lower occupancy rates in skilled nursing facilities and the financial struggles of its customers. Omnicare provides pharmacy services to nursing homes and other clients. (AP)