Chinese fund Eskom and Transnet, but El Niño concerns loom

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TWO of South Africa’s largest state-owned companies announced they had new funding from Chinese state banks, with Eskom securing $2.5-billion (R33.2-billion) and Transnet R4-billion. The funding, announced at the start of the 10th Brics Summit in Johannesburg, comes at a time when SOEs face difficulties raising finance from local banks and investors.

PETRA Diamonds posted a 21% rise in fullyear revenue on higher diamond prices and production, while a tight leash on costs helped it cut its debt pile by 15%. It has taken measures to keep its debt in check after years of heavy spending, but the impact of a confiscated consignment in

Tanzania and the recent strengthening of the rand have hurt its business.

STANDARD Bank Group has allocated R10-billion to fund energy projects in South Africa as it grows more confident in its home market and invests in riskier ventures.

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THE South African Weather Service said the likelihood of an El Niño weather pattern was increasing as the country moved towards spring, but it was too early to determine the potential impact. The last El Niño was linked to a severe drought that hit crop production and economic growth across Southern Africa.

STRUGGLING staterun power firm Eskom said it was considering cutting staff and selling assets after reporting a R2.3-billion loss, which underlined the gravity of its financial position.

ALUMINIUM products maker Hulamin’s share price fell as much as 30% to R3.50 on Wednesday after it warned that interim earnings could fall as much as 82%.

The company, scheduled to release its results for the six months to end-June tomorrow, said it expected to report basic and headline earnings per share to be in the range of 10c-16c, down from 56c in the matching period.