Tag Archives: RESULTS / (UPDATE 2)

The UPDATE 2-EON marks an even faster UK turnaround as CEO Teyssen bows down | Instant News

* UK retail units turn in profits one year ahead

* E.ON is proposing a dividend of 47 euro cents for 2020

* Adj EBIT seen at 3.8 billion-4 billion euros by 2021 (Adding CEO quote, UK context)

FRANKFURT, March 24 (Reuters) – E.ON, Germany’s largest listed energy group, said on Wednesday that its UK retail business is recovering faster than expected, and proposed higher dividends due to the limited impact of the COVID-19 pandemic.

“Amid the biggest economic crisis since World War II, the new E.ON is showing its strength in impressive ways,” said Chief Executive Johannes Teyssen, who will hand over reins to Leonhard Birnbaum in April after 11 years in charge, said.

During his tenure, E.ON separated the former Uniper power generation division in response to Germany’s nuclear shutdown, and agreed to a major asset swap with RWE, turning it into Europe’s largest energy grid operator.

UK’s E.ON retail unit, which includes the Npower brand it acquired as part of the exchange, is likely to generate profits of more than 100 million pounds ($ 137 million) this year, one year ahead of schedule.

“The turnaround in Britain is a success,” Teyssen said.

In the UK, E.ON’s second largest market after Germany, the group still lost around 600,000 clients, or 5.5%, during 2020 as part of its ongoing restructuring.

E.ON said it would propose a dividend of 0.47 euros for 2020, up slightly from 0.46 euros in 2019.

Adjusted operating profit (EBIT) rose 17% to 3.78 billion euros in 2020, while adjusted net profit rose 7% to 1.64 billion, said E.ON. They are seen at 3.8 billion-4 billion euros and 1.7 billion-1.9 billion euros in 2021, respectively.

($ 1 = 0.7294 pounds)

$ 1 = 0.8449 euros Reported by Christoph Steitz and Tom Kaeckenhoff; Additional reporting by Vera Eckert; Edited by Riham Alkousaa, Sherry Jacob-Phillips and Jan Harvey


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UPDATE 2-Myer Australia’s first half sales fell 13% due to the pandemic, stocks slipped | Instant News

(Recast, adding analyst comments, stocks)

March 4 (Reuters) – Australia’s Myer Holdings Ltd said on Thursday store closings due to the COVID-19 pandemic led to a 13% drop in first-half sales, sending department store operator shares to their lowest in almost two months.

The 120-year-old retailer, the country’s highway icon, said sales fell to A $ 1.40 billion ($ 1.09 billion) for the six months ended January 25, from A $ 1.61 billion last year, due to movement restrictions. especially hitting sales. in metro cities like Melbourne, Sydney and Brisbane.

Myer and other brick and mortar retailers have been hardest hit by the pandemic, and have had to rely on millions of dollars in government support.

While Australian retailers benefited from an economic rebound late last year as the country eased restrictions, Myer’s results suggest it still relies heavily on government support to keep operations going.

Myer received A $ 51 million as part of the government’s JobKeeper payment scheme aimed at supporting businesses significantly affected by the pandemic, and was also granted A $ 18 million in rental waivers in connection with store closings.

However, his online sales proved to be a bright spot as they jumped 71%. They account for 21% of total sales, double last year’s share.

“Management has indeed shown that they will continue to invest online. That makes a lot of sense, ”said Johannes Faul, director of equity research, Australia & New Zealand, Morningstar.

“In the long term, the general online channel will grow and the physical footprint will decline for Myer, while sales will be reallocated to the online channel.”

Profit attributable to shareholders for the period rose to A $ 43 million from A $ 24.4 million a year earlier, helped in large part by benefits from the JobKeeper scheme and lease relief.

The company does not pay dividends, continuing the suspension since 2018. ($ 1 = 1.2862 Australian dollars) (Reporting by Arundhati Dutta and Nikhil Subba in Bengaluru; Editing by Amy Caren Daniel and Rashmi Aich)


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UPDATE 2-Adecco Switzerland sees a steady recovery as COVID restrictions easing | Instant News

* The company sees steady improvements in early 2021

* CFO sees further recovery when restrictions are lifted

* First quarter earnings tend to be flat

* The company continues its 600 million euro share buyback (Update with share prices, analyst and executive comments)

ZURICH, February 25 (Reuters) – Adecco Group sees a steady recovery in the labor market and does not expect the increase to be thwarted by the latest COVID-19 restrictions across Europe, the Swiss employment firm said on Thursday.

Adecco said many entrepreneurs have learned to overcome social distancing rules and other restrictions, while it is hoped that measures to tackle the latest COVID-19 spike will subside.

The company, whose operations help signal the health of the broader economy, said earnings in January and February were close to returning to pre-crisis levels helped by increased hiring in fast-growing areas such as e-commerce and logistics.

“The risk of pulling back is limited,” Chief Financial Officer Coram Williams told Reuters. “We are clearly at a point where the restrictions have become the strictest and the volume is resilient. We should see further restoration and improvement but only if those restrictions are actually lifted. “

Switzerland on Wednesday said it would ease restrictions starting March 1 and Britain has laid out plans to ease the measures, although shops, restaurants and schools remain closed in many European countries.

In January and February, Adecco’s revenue decreased 2% compared to the previous year, an upward trend from a 5% decline in the fourth quarter and a 15% decline in the third quarter.

“We are a good barometer of the economy and we are close to pre-crisis levels if you look at our earnings,” Williams said.

Adecco’s new confidence echoes rivals Randstad and ManpowerGroup who both say they are seeing a steady increase in hiring.

During the fourth quarter, Adecco’s revenue fell to 5.41 billion euros ($ 6.59 billion), beating estimates of 5.27 billion euros in the consensus views of analysts compiled by the company.

Fourth-quarter net profit of 149 million euros beat estimates of 116 million euros. Shares were up 1.6% in early trading.

Williams said Adecco is expected to post revenue growth during the second quarter of this year after a 28% drop in the COVID-hit second quarter of 2020.

Earnings will likely be flat in the first quarter with “little chance of growth,” Williams said.

The company proposed a 2020 dividend of 2.50 Swiss francs, the same rate as 2019, and said it would continue the 600 million euro share buyback scheme that was halted at the start of the crisis.

$ 1 = 0.8214 euros Reported by John Revill; Edited by Michael Shields and Edmund Blair


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2-Eni Italia UPDATE beat expectations in last quarter after ‘year like no other’ | Instant News

(Recast, add comments, details, share, graphics)

MILAN, Feb 19 (Reuters) – Italian energy group Eni’s fortunes picked up in the last quarter of this year as firmer oil prices after “a year like no other” saw full-year profits fall.

Adjusted net income for the fourth quarter was 0.66 billion euros ($ 798 million), down 88% on the year but beating analyst expectations for a 0.04 billion euro loss.

But for the full year, it reported a loss of 742 million euros compared to a gain of 2.876 billion euros in 2019 after what Eni Chief Executive Claudio Descalzi said was “a year unlike any other in the history of the energy industry”.

The unprecedented drop in demand triggered by the COVID-19 pandemic saw big European rivals Shell and BP as well as big US companies Exxon Mobil and Chevron report heavy losses for the year.

Eni’s shares fell sharply last year, hitting their lowest level in a quarter century as the health pandemic rocked oil markets.

In the fourth quarter production fell 11% to 1,713 million barrels of oil equivalent per day but the company said full-year production was on target.

Like its competitors, Eni has cut its investments to offset the impact of the pandemic and spent 35% less last year at 5 billion euros.

Adjusted cash flow for the year fell to 6.7 billion euros compared with guidelines for 11.5 billion euros on Brent oil prices of $ 60 per barrel.

“By taking advantage of the actions we took, our adjusted cash flow for 2020 … was able to finance our capex, with a surplus of 1.7 billion,” said Descalzi.

The companies, which said they were well-equipped to deal with this year’s uncertain trading environment with liquidity of around 20.4 billion euros, confirmed a 2020 dividend of 0.36 euros per share.

In a note, Royal Bank of Canada said Eni remains one of the more leveraged names among integrated oil companies.

“We see Eni’s aggressive strategy around the energy transition as posing a risk to shareholders from time to time,” he said.

Eni, like other European peers, is cleaning up his business as investors increase pressure on the oil and gas sector to fight climate change.

It will release its new business plan on Friday.

By 1019 GMT Eni’s shares were down 1.1%, while the European oil and gas index was down 0.5%.

($ 1 = 0.8271 euro)

Additional reporting by Stefano Bernabei; Edited by Edmund Blair and David Evans


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UPDATE 2-NAB Australia shows an improving economy, cutting impairment costs | Instant News

(Added CEO quotes, analyst comments, background)

SYDNEY, February 16 (Reuters) – National Australia Bank Ltd posted a higher quarterly profit from the previous two quarters on Tuesday as it reduced the cost of providing bad loans driven by the pandemic, and showing encouraging signs in the economy.

The country’s number two lender by market value reported cash revenues of A $ 1.65 billion ($ 1.28 billion) for the three months ended December 31. The results were flat last year but a 47% increase over the average quarterly result in the previous year. half, the bank said in its limited quarterly earnings update.

“The improvement in economic and health outcomes in Australia and New Zealand is encouraging,” Chief Executive Ross McEwan said in a statement.

“However, there are still a number of uncertainties … (including) the impact of ongoing health warnings and the measures being taken to contain the spread of COVID-19 to customers.”

As Australia emerged from the coronavirus crisis better than expected after bringing the local outbreak under control, banks began lowering fees for poor loan terms, which have grown to over A $ 23 billion by 2020, while interest rates are low and Weak borrowing volumes during the pandemic also hit revenue.

Commonwealth Bank, NAB’s biggest competitor last week posted better-than-expected earnings for the first half of the fiscal year due to lower provision fees and signaled it will challenge NAB as the country’s leading business bank.

NAB, which controls about a fifth of the business banking market, said on Tuesday it had added some 440 new roles in its business and private banking divisions and would target 110 more this year.

The credit impairment burden for the quarter slumped 98% compared to the second half of 2020, the NAB said, as more borrowers began paying back deferred loans.

NAB shares were up 2.2% in early trading, while the broader market was up 0.6%.

“This bodes well for the December 20 quarter trade update from Westpac tomorrow and ANZ on Thursday,” said Azib Khan, a banking analyst at Morgans Financial.

NAB noted that after remaining stable last year, credit impairment had increased 17 basis points to 1.18% of gross assets which was still “better than expected” as the pandemic lending holiday ended in October. ($ 1 = Australian dollars 1.2853) (Reported by Paulina Duran in Sydney and Nikhil Subba in Bengaluru; Edited by Grant McCool and Richard Pullin)


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