Tag Archives: Corporate Event

Brazilian energy company, Omega, buys wind energy assets from Eletrobras | Instant News


BRAZIL, July 30 (Reuters) – Brazilian renewable energy company Omega Geracao SA agreed to buy wind energy assets from Brazilian Eletrobras for 1.5 billion reais ($ 290.98 million), the two companies said in a securities filing on Thursday.

Omega will buy 78% of Eletrobras’s shares in the Santo Vitoria do Palmar complex and 99.9% of its shares will be Hermenegildo 1, 2, 3 and Chui wind power assets. ($ 1 = 5,1550 reais) (Reporting by Jake Spring and Luciano Costa; Editing by Muralikumar Anantharaman)

.



image source

UPDATE 2-Ambev Brazil sees volume rising, with margin recovery slower | Instant News


(Adding comments from executives, analysts, sharing)

By Gabriela Mello

SAO PAULO, July 30 (Reuters) – Brazilian brewer Ambev SA sales have recovered from April’s lows, executives said on Thursday, expecting further increases after the coronavirus crisis halved its quarterly earnings.

The pandemic began hurting operations in March when the government quarantined the limited distribution of alcoholic drinks, including the brands Budweiser, Corona and Stella Artois.

“We are quickly adapting to the changes brought by COVID-19 in terms of consumption and volume sequentially improving since April,” Chief Executive Jean Jereissati told analysts about earnings calls.

The Latin American unit of Anheuser Busch InBev reported second-quarter net profit of 1.27 billion reais ($ 245.65 million), down 51.4% from the year-ago period. Margin adjusted before tax, interest, depreciation and amortization (EBITDA) margins fell to 28.8% from 38.6%.

Jereissati said Ambev expects a “V-shaped” recovery in volume and income, with a slower recovery in margins because market conditions tend to remain difficult in the second half.

“One of our biggest challenges going forward is how to increase profitability and this will not happen overnight because the future remains uncertain and consumption is still volatile,” Chief Financial Officer Lucas Lira said.

The company is stepping up efforts to cut discretionary costs while focusing more on customers, Lira added.

With bars and restaurants closed, Ambev diverted resources to other sales channels such as mother and child shops and e-commerce, including the Ze Delivery application.

“In a short time, Ambev has rediscovered itself using a digital sales initiative, keeping stakeholders close and the facility fully operational,” analysts at Credit Suisse wrote in a report, raising its stake to “outperform.”

Ambev shares fell 3% in the mid afternoon to 14.68 reais after rising as much as 5% at the opening.

The Brazilian subsidiary of AmBev, of which AB InBev has 61.9%, operates in 16 countries in America, including Argentina and Canada.

$ 1 = 5,1700 reais Reporting by Gabriela Mello; editing by Jason Neely

.



image source

Soccer-Italia Serie A opposes the decision to sell shares in the media business | Instant News


MILAN, 30 July (Reuters) – Italian Serie A soccer league has postponed the decision on the project to sell minority shares from its media business, because representatives from the country’s top clubs have asked for more time to assess the proposal for private equity funds.

Looking for ways to increase revenue and overcome the coronavirus crisis, Serie A has asked investors to bid to buy up to 15% of shares in newly created media companies that will control broadcast rights.

But sources close to the matter told Reuters several Serie A clubs were reluctant to accept losing their power over this vital business.

Private equity firms CVC, Bain Capital and Advent International have submitted bids for shares in the business, while the credit arms of Apollo, Fortress and Blackstone GSO have made proposals for offering debt or hybrid financing, the source said.

Moreover, Chinese media companies Wanda Sports and Mediapro have submitted separate proposals to create a special Serie A broadcast channel that will distribute more than a number of platforms, the source added.

“We need to judge what is the best way,” Serie A president Paolo Dal Pino told reporters after meeting with top executives from 20 clubs on Thursday.

“We decided to take more time, until August 25, to assess all the opportunities we have at our table,” he said.

Serie A, which relies on broadcast rights for more than half of its income, lags behind the financial heavyweights of the English Premier League, La Liga in Spain and the German Bundesliga. (Reporting by Elvira Pollina; Editing by Mark Potter)

.



image source

Vale Brasil oversees the expansion of the mine, Samarco restarted amid strong Chinese demand | Instant News


RIO DE JANEIRO (Reuters) – Brazilian iron ore miner Vale SA sent a proposal this month to the council for further expansion in the Northern Systems mining complex, and the company expects to restart operations at its Samarco complex in December, executives said on the day Thursday .

FILE PHOTOS: Brazilian mining company, SA logo and trade symbol displayed on screen on the New York Stock Exchange (NYSE) in New York, USA, December 6, 2017. REUTERS / Brendan McDermid

Speaking to analysts after the release of the company’s second-quarter results, executives hit an optimistic tone, saying it was the only miner capable of delivering an additional 100 million tons of iron ore to meet strong demand from China for major steelmaking materials.

Vale plans to produce 400 million metric tons per year by the end of 2022, a target originally set for last year and postponed after the company’s dam broke in January 2019, killing 270 people and forcing the mine to close.

When production recovered, Vale reached a record new iron ore production at its main S11D complex in northern Brazil, an executive said. He expects his Itabira complex in southeast Brazil, disturbed by new corona virus cases, to resume full production by 2021.

Vale-listed shares in Brazil fell 3% in afternoon trading, as the company missed market consensus for the results and posted a cost increase. The Bovespa benchmark index in Brazil fell 1.3%.

Vale also issued several warnings to investors.

The pandemic will reach iron ore production reaching 10 million tons by 2020, executives said. Additional provisions regarding the New Caledonia nickel project, currently in the block, are also expected.

In addition, they said, restarting Samarco could be delayed a bit, meaning that operations would resume in early 2021.

On Wednesday night, Vale announced it would resume dividend payments, stopped after a dam burst in the Brazilian city of Brumadinho last year.

“The lack of dividends has been a significant relative loss for Vale versus other major iron ore miners,” Jefferies Research analysts Christopher LaFemina and Petar Petrovski said in a note.

Reporting by Sabrina Valle and Gram Slattery in Rio de Janeiro; Additional reporting by Roberto Samora; Editing by Alistair Bell and Matthew Lewis

.



image source

Aldi will create 1,200 more jobs in the UK this year | Instant News


July 29 (Reuters) – Aldi, the fifth largest supermarket group in the UK, will create 1,200 additional jobs this year in the UK, which will increase the total new jobs in the UK to 4,000 for this year, the company said on Wednesday.

Aldi, who has more than 890 stores and employs around 35,000 people across the UK, said in a statement via email that they were opening new stores Sandhurst, Bristol and Edinburgh.

Additional work is a rare occurrence in this sector, which was declared hard hit by a coronavirus outbreak due to government restrictions on movement as well as consumer concerns about large public gatherings.

Unlike the country’s four big traders – industry leaders Tesco, Sainsbury, Asda and Morrisons – Aldi and rival Lidl GB continue to open new stores, pushing up market share.

In 2025, Aldi targets to have 1,200 stores in the United Kingdom.

Germany’s discount supermarket Lidl said earlier this month that it plans to open more than 25 new stores in the next six months, creating 1,000 jobs.

Reporting by Kanishka Singh in Bengaluru; Editing by Dan Grebler

.



image source