Shoprite raises dividend but Eskom gets downgraded again

SHOPRITE said rising consumer confidence could fuel higher sales growth as the food retailer raised its dividend and reported market-share gains in its home country. The half-year payout to shareholders would be raised 14%, about in line with a year ago, it said.

SASOL said US tax cuts would boost returns from its Lake Charles chemical project, which remains on track to start up in 2018. The $11.1-billion plant in Louisiana was 81% complete as at December 31, and the cost forecast is unchanged from the last estimate, it said. US tax reforms have positively affected the project’s returns, with the net present value estimated to jump by as much as $500-million.

AFRICAN Rainbow Minerals, the diversified mining company, said it would post basic earnings per share of 912c-930c compared with a loss of 134c a year earlier, with stronger prices for the commodities it produces.

FINANCE Minister Nhlanhla Nene said his predecessor’s budget presented last week might not prevent further credit ratings downgrades as President Cyril Ramaphosa tries to revive the economy. The state of government finances forced the Treasury to raise VAT for the first time in 25 years.

S&P Global Ratings said it was downgrading Eskom to CCC+ from Bbecause of “ongoing liquidity concerns and insufficient government support”. The ratings agency maintained a negative outlook, meaning Eskom may be heading towards a “default imminent with little prospect for recovery” rating if it falls below CCC-.

FARMERS are likely to harvest a smaller maize crop in 2018, thanks to lower grain prices as a result of a bumper harvest in 2017. The crop estimates committee said producers would harvest about 12.2 million tons, a 27% drop from the season just passed.