Tag Archives: company news

Petrobras Brasil said a major divestment was nearing the finish line | Instant News


RIO DE JANEIRO (Reuters) – Petrobras is in the advanced stages of several major divestments, executives said on Thursday, suggesting that the company’s ambitious deleveraging program could accelerate after a lull during Brazil’s worst coronavirus outbreak.

PHOTO FILE: PHOTO FILE: Brazil’s state-owned Petrobras oil company logo is seen at their headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS / Sergio Moraes / Photo File / Photo File

Speaking to analysts after the company’s third-quarter results, executives at Petroleo Brasileiro SA PETR4.SA, as the state-owned oil company is officially called, said it hopes to complete negotiations to sell the RLAM refinery by the end of the year and recently received a binding offer for the REMAN refinery, in the Amazon city of Manaus.

The company expects to receive binding offers for the REPAR refinery in southern Brazil in December, they added.

Petrobras has sought to sell dozens of non-core assets in recent years in a bid to reduce debt and sharpen its focus on offshore oil production and exploration. Among the divestments are sales of nine refineries which are expected to raise more than $ 10 billion cumulatively for the company.

But the divestment process has struggled in recent months amid falling crude oil prices and a more general slowdown in the global economy.

The company expects Brazil’s antitrust authorities to approve the sale of its Liquigas gas distribution unit in November, said Chief Financial Officer Andrea Almeida.

The company is also continuing to examine initial public offerings for its middle offshore asset collection, he added.

Executives are not very optimistic about some of the other divestments.

Chief Executive Roberto Castello Branco said plans to sell his stake in the TBG gas pipeline unit, which links Brazil and Bolivia, were hampered by regulatory issues.

The company will not sell its stake in the Braskem SA petrochemical company BRKM5.SA until the company makes significant improvements in terms of governance and environmental obligations, he added.

Brazil-listed preferred stock in Petrobras rose 2.3% in afternoon trade, after the company beat margin forecasts late Wednesday, even as profit missed expectations on a one-time fee.

Brazil’s benchmark Bovespa equity index .BVSP up 1.2%.

In terms of production, executives marked a moderate drop in fourth quarter output and an increase in lifting costs due to scheduled maintenance. However, they said, a number of new wells had been operating in some of the company’s most promising offshore fields in the fourth quarter.

The company has noticed a short-term decline in demand for its products in Europe due to the rise of COVID-19 there, said André Chiarini, head of logistics and trading of the company. However, demand for Petrobras fuel in China remains strong, he added.

Reporting by Gram Slattery and Luciano Costa; Edited by Kirsten Donovan and David Evans

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AMP Australia accepts a takeover offer from Ares Management | Instant News


(Reuters) – AMP Ltd AMP.AX said Ares Management Corp. based in the US ARES.N has made a non-binding bid to buy out troubled Australian wealth managers, sending its shares soaring to the highest in more than 17 years.

FILE PHOTOS: The logo of AMP Ltd, Australia’s largest retail wealth manager, adorns their headquarters which is located in the heart of Sydney, Australia, May 5, 2017. REUTERS / David Gray

The Sydney-based company said discussions were at an early stage and did not reveal the value of the offer. AMP had a market value of A $ 4.40 billion ($ 3.1 billion) as of Thursday.

Australian media, which first reported on the takeover discussions, said Ares had offered about A $ 5 billion. Ares declined Reuters requests for comment.

AMP shares jumped 21.5% in early trading to A $ 1,555, the highest level since early September.

The wealth manager’s stock has lost more than two-thirds of its value since a public investigation in 2018 exposed systemic errors at the company including charging fees for advice that was never given, taking insurance premiums from the accounts of deceased clients, and misleading regulators.

The disclosures led to the resignation of the chairman and CEO, and the loss of another chairman this year through handling complaints of employee misconduct.

The client has left the company, with net cash outflows of about A $ 2.4 billion from its flagship fund management unit in the third quarter.

AMP sparked talks about a buyout or liquidation in early September when all of its assets were under review.

On Friday, it said it had received “significant” interest in its assets and was evaluating various options, including sticking with its own three-year settlement plan.

AMP handed over its position as Australia’s largest wealth manager to IOOF Holdings Ltd IFL.AX after a rival bought National Australia Bank Ltd. NAB.AX financial advisory agency in August.

Reporting by Nikhil Kurian Nainan in Bengaluru; Edited by Vinay Dwivedi and Stephen Coates

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Petrobras Brasil said a major divestment was nearing the finish line | Instant News


RIO DE JANEIRO (Reuters) – Petrobras is in the advanced stages of several major divestments, executives said on Thursday, suggesting that the company’s ambitious deleveraging program could accelerate after a lull during Brazil’s worst coronavirus outbreak.

PHOTO FILE: PHOTO FILE: Brazil’s state-owned Petrobras oil company logo is seen at their headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS / Sergio Moraes / Photo File / Photo File

Speaking to analysts after the company’s third-quarter results, executives at Petroleo Brasileiro SA PETR4.SA, as the state-owned oil company is officially called, said it hopes to complete negotiations to sell the RLAM refinery by the end of the year and recently received a binding offer for the REMAN refinery, in the Amazon city of Manaus.

The company expects to receive binding offers for the REPAR refinery in southern Brazil in December, they added.

Petrobras has sought to sell dozens of non-core assets in recent years in a bid to reduce debt and sharpen its focus on offshore oil production and exploration. Among the divestments are sales of nine refineries which are expected to raise more than $ 10 billion cumulatively for the company.

But the divestment process has struggled in recent months amid falling crude oil prices and a more general slowdown in the global economy.

The company expects Brazil’s antitrust authorities to approve the sale of its Liquigas gas distribution unit in November, said Chief Financial Officer Andrea Almeida.

The company is also continuing to examine initial public offerings for its middle offshore asset collection, he added.

Executives are not very optimistic about some of the other divestments.

Chief Executive Roberto Castello Branco said plans to sell his stake in the TBG gas pipeline unit, which links Brazil and Bolivia, were hampered by regulatory issues.

The company will not sell its stake in the Braskem SA petrochemical company BRKM5.SA until the company makes significant improvements in terms of governance and environmental obligations, he added.

Brazil-listed preferred stock in Petrobras rose 2.3% in afternoon trade, after the company beat margin forecasts late Wednesday, even as profit missed expectations on a one-time fee.

Brazil’s benchmark Bovespa equity index .BVSP up 1.2%.

In terms of production, executives marked a moderate drop in fourth quarter output and an increase in lifting costs due to scheduled maintenance. However, they said, a number of new wells had been operating in some of the company’s most promising offshore fields in the fourth quarter.

The company has noticed a short-term decline in demand for its products in Europe due to the rise of COVID-19 there, said André Chiarini, head of logistics and trading of the company. However, demand for Petrobras fuel in China remains strong, he added.

Reporting by Gram Slattery and Luciano Costa; Edited by Kirsten Donovan and David Evans

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Westpac Australia changed CEO King’s contract to allow him to serve longer | Instant News


FILE PHOTOS: Passengers walking past a Westpac bank branch in Sydney, Australia 23 April 2018. REUTERS / Edgar Su

(Reuters) – Westpac Banking Corp on Friday said it would remove the two-year time limit on its newly appointed CEO, Peter King, allowing him to serve longer hours as the bank tries to regain trust and tackle COVID-19. crisis.

King took over as CEO of Australia’s second-largest bank at a tumultuous time for lenders, following a lawsuit accusing Westpac of allowing millions of payments to people who exploit children, prompting his predecessor to step down.

The massive lawsuit, which was completed in September for a record A $ 1.3 billion ($ 926.77 million), tarnished the lender’s reputation and led to a series of other senior management changes.

“In Peter’s short time as CEO, he has made a significant contribution to Westpac, in a year of unprecedented change,” said Chairman John McFarlane, this year’s nominee.

The bank has undergone a major overhaul, sold a stake in the company it owns, and earlier in October announced it was pulling out of banking operations in China and several other Asian markets to focus on its core domestic and New Zealand businesses.

King, who assumed the CEO role on a permanent basis in April for two agreed years, has been slated to retire this year.

($ 1 = 1.4027 Australian dollars)

Reporting by Nikhil Kurian Nainan in Bengaluru; Edited by Tom Hogue

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UPDATE 2-Itau Brazil appointed a new CEO, signaling a generational change | Instant News


(Adding context)

SAO PAULO, October 29 (Reuters) – Itau Unibanco Holding SA on Thursday appointed Chief Financial Officer Milton Maluhy Filho as its new chief executive, ushering in a generational change at Brazil’s biggest bank.

Maluh, 44, will replace Candido Bracher, who has served for roughly three years, starting February 2, according to the securities filing. Bracher, who will reach the mandatory bank retirement age of 62 in December, will return to the board of directors next year.

Maluhy will become the youngest CEO among Brazil’s biggest lenders and will take control of a bank that is financially strong but still faces challenges in competing with the fintech that has rocked the market in recent years.

Maluhy started his career at Itau in 2002 and has since taken on a variety of roles, including as CEO of Chile’s Itau Corpbanca, an acquisition that did not live up to expectations, although Maluhy made several steps to improve his performance.

“In each of these positions, he has always stood out for his determination to seek results, his focus on the interests of our clients, his ability to assemble a productive and balanced team, and the degree to which he identifies our culture,” Itau said in a statement.

CHALLENGE

Going forward, Maluhy will have to face the economic impact of the coronavirus pandemic, which has seen banks set aside billions for potential losses.

The bank also faces new nimble rivals such as card processors PagSeguro Digital Ltd, StoneCo Ltd and XP Inc, in which Itau decided to acquire a stake. Card processors have attracted clients from traditional banks and kept costs down.

The new generation of online banks is emerging as a major challenge for lenders like Itau, who are saddled with expensive brick and mortar branches.

“Priority is now shifting to digitizing our operations and in a relentless quest for growth in a very dynamic competitive environment,” said co-chairs Pedro Moreira Salles and Roberto Setubal in a letter to Itau employees.

Reporting by Carolina Mandl; Edited by Sandra Maler, Christian Plumb, and Aurora Ellis

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