<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="413" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/7TDBYVGF5ROF7KBJVB2XWAWXVQ.avif" alt="" class="wp-image-590625"/><figcaption class="wp-element-caption">The logo of Galp is displayed at a petrol station in Ronda, Spain February 14, 2025. REUTERS/Jon Nazca/File Photo</figcaption></figure>



LISBON, Feb 25 (Reuters) &#8211; Portuguese oil company Galp GALP.LS said on Tuesday it had found significant presence of light oil and gas condensate in a fifth well in Namibia&#8217;s Mopane field, opening up new exploration opportunities that are sending its shares sharply higher.



Galp&#8217;s Mopane offshore discovery was initially estimated to hold at least 10 billion barrels of oil and gas equivalent.



The company drilled four wells there in 2024 to explore and appraise a first hub in the northwest area of the Mopane complex, and a fifth well last month, this time in the field&#8217;s southeast area.



It said in a statement that the new well, Mopane-3X, 18 km (11.18 miles) away from the first, targeted two stacked prospects &#8211; AVO-10 and AVO-13 &#8211; and a deeper sand at 1,200 metre water depth.



&#8220;Preliminary data confirms light oil and significant gas condensate columns between AVO-10, and light oil columns in AVO-13 and the deeper sand, in high-quality sandstones,&#8221; it said, also pointing to high pressure and permeability as well as low oil viscosity.



Galp shares were up 7% in morning trading and leading gains on the pan-European Stoxx 600 index&nbsp;.STOXX.



Jefferies said in a research note that the well should de-risk the 10 billion boe resource estimate for the Mopane Complex and support the case for a multi-Floating Production Storage and Offloading development.



Galp is looking to sell half of its 80% stake in Mopane&#8217;s Petroleum Exploration Licence 83 to a player who would become its operator, although it has said it is in no rush.



(Reporting by Sergio Goncalves and Joao Vicente Mauricio; editing by David Evans)

7TDBYVGF5ROF7KBJVB2XWAWXVQ

Galp’s new well in Namibia’s Mopane finds more oil, shares rise

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="377" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/M34ZXN6UKBNUHJLS5HD7NFP7O4.avif" alt="" class="wp-image-590622"/><figcaption class="wp-element-caption">The logo of commodities trader Glencore is pictured in front of the company&#8217;s headquarters in Baar, Switzerland, July 18, 2017. REUTERS/Arnd Wiegmann/File Photo</figcaption></figure>



Feb 25 (Reuters)&nbsp;&#8211;&nbsp;Trading houses Vitol and Glencore will receive $380 million in compensation after their gas supplier, trading firm Taleveras, won a legal battle in a London court against Nigeria’s sole liquefied natural gas (LNG) producer for non-delivery of cargoes, court documents seen by Reuters showed.



The case heard in London&#8217;s High Court and Court of Appeal is the latest in a string of lawsuits brought by buyers against sellers and producers for non-delivery of cargoes after gas rallied from lows plumbed during the COVID pandemic when Russia invaded Ukraine in February 2022.



Taleveras sued Nigerian venture, known as NLNG and involving ShellSHEL.L TotalEnergies TTEF.PA and Eni ENI.MI as partners, four years ago. These three companies are minority shareholders in NLNG, along with the Nigerian state-owned oil company which has 49%. Last week, Taleveras had NLNG&#8217;s appeal rejected, according to an official video of court proceedings.



A full written judgment is due to be released in the coming weeks.



NLNG runs Nigeria’s biggest LNG plant, which covers around 5% of global supply.



NLNG said it was reviewing the ruling and declined further comment. Shell&nbsp;and Eni declined&nbsp;to comment, while TotalEnergies did not respond to a request for comment.



Court proceedings focused on 19 cargoes that NLNG had been due to deliver to Taleveras in 2020-2021.



Taleveras had pre-sold some of these cargoes to Vitol and Glencore, according to court documents.



The trading houses took legal action against Taleveras for non-delivery, leading to a chain of litigation.



The lost appeal means NLNG will need to pay Vitol around $260 million and about $120 million to Glencore, the documents said.



Vitol and Glencore did not respond to requests for comment. It was not clear how much Taleveras would receive on top of $380 million. Taleveras declined to comment.



European benchmark gas prices&nbsp;TRNLTTFMc1&nbsp;swung between 3.63 euros ($4.14) per megawatt-hour in 2020 as demand fell because of the pandemic and 311 euros ($328) per MWh in 2022 after the invasion of Ukraine disrupted supplies to Europe.



When prices soared, some producers cut supply under long-term deals and sold those volumes at higher prices on the spot market instead, triggering a wave of complaints about legality of such actions.



In one such case, Shell SHEL.L and BP BP.L pursued arbitration against Venture Global LNG, a U.S. gas exporter, for failing to supply contracted cargoes. Venture Global cited technical issues at its LNG facilities as the reason for delayed deliveries.



In the case of Taleveras versus NLNG, Reuters could not establish the reasons NLNG cited for delays.



Taleveras was founded in 2004 by Igho Sanomi, one of Nigeria’s independent energy traders. The company is now based in Dubai.



(Reporting by Anna Hirtenstein; Additional reporting by Marwa Rashad and Isaac Anyaogu; Editing by Tomasz Janowski)

M34ZXN6UKBNUHJLS5HD7NFP7O4

Vitol, Glencore win $380 million award in Nigerian LNG litigation

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="480" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/6XIG4R3DRFK2ZPWEVWERAVU4PA.avif" alt="" class="wp-image-590617"/><figcaption class="wp-element-caption">The new logo of the Nigeria oil company is seen at the NNPC Mega Gas Station in Abuja, Nigeria August 30, 2022. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



LAGOS, Feb 25 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s state oil firm NNPC on Tuesday announced a joint venture with Swedish tanker giant Stena Bulk and Nigerian offshore logistics leader Caverton Marine to overhaul maritime transportation in West Africa.



The newly formed company will streamline crude oil, refined products and LNG shipping across West Africa and cater to other oil producers and traders in the region with modern vessels.



The companies did not share financial details of the deal, which was signed last week.



&#8220;By combining our expertise with Stena Bulk and Caverton Marine, we are creating a robust platform that will enhance our domestic refining, import and export capabilities and strengthen Nigeria&#8217;s position in global energy logistics,&#8221; Panos Gliatis, Managing Director of NNPC Shipping, said in a statement.



Erik Hånell, President &amp; CEO of Stena Bulk, said the partnership aligns with the group&#8217;s strategy to expand its presence in key growth markets.



Nigeria boasts Africa&#8217;s largest oil refinery and meets 5% of global LNG demand.



(Reporting by Isaac Anyaogu; Editing by Kirsten Donovan)

6XIG4R3DRFK2ZPWEVWERAVU4PA

Nigeria’s NNPC, Stena Bulk and Caverton launch new shipping venture

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="427" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/KWNFLKVDZBNCHKDHIAWQFVHUEU.avif" alt="" class="wp-image-590584"/><figcaption class="wp-element-caption">The logo of British multinational oil and gas company Shell is displayed during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren/File Photo</figcaption></figure>



LONDON/SINGAPORE, Feb 25 (Reuters)&nbsp;&#8211;&nbsp;Global demand for liquefied natural gas is estimated to rise by around 60% by 2040, driven largely by economic growth in Asia, AI impact and efforts to cut emissions in heavy industries and transportation, Shell said in an annual report on Tuesday.



Demand for natural gas continues to rise globally as the world transitions to cleaner fuels. Industry forecasts LNG demand to reach between 630 million and 718 million metric tons a year by 2040, Shell said in its 2025 annual LNG outlook.



The latest view from the world&#8217;s largest LNG trader is higher than last year&#8217;s forecast, which pegged global LNG demand in 2040 at 625 million to 685 million tons per year.



&#8220;Upgraded forecasts show that the world will need more gas for power generation, heating and cooling, industry and transport to meet development and decarbonisation goals,&#8221; said Tom Summers, Shell&#8217;s senior vice president for LNG marketing and trading.



China, the world&#8217;s top LNG importer, and India are increasing LNG import capacity and gas related infrastructure to meet rising demand, Shell added.



Natural gas imports into China are forecast to rise this year as economic stimulus plans lift industrial demand, although trade tensions with the U.S. may cap growth.



China saw total natural gas imports, including pipeline supply, of 131.69 million tons last year, the highest since at least 2013. Of that volume, 76.65 million tons was LNG, according to its customs data.



In India, the International Energy Agency expects natural gas consumption to jump 60% between 2023 and 2030, doubling the country&#8217;s need for LNG imports, as domestic output is expected to grow much more slowly than demand.



While a young population and economic growth are driving an increase in gas demand in emerging markets Algeria, Egypt, Malaysia and Indonesia, domestic production in those markets is seen declining over the next 15 years by up to 50 million tons, equating to less available gas for export, the report said.



SUPPLY SIDE



To meet rising demand, particularly in Asia, more than 170 million tonnes of new LNG supply is set to be available by 2030, said Shell. The start-up timings of new LNG projects, however, are uncertain, Shell said.



Several LNG projects have seen delays over the past two years due to geopolitical tensions, regulatory hurdles, labour shortages and supply chain bottlenecks, delaying the availability of around 30 million tons of new LNG supply, the size of India&#8217;s LNG imports, to 2028.



In 2024, global LNG trading rose by only 2 million tons to 407 million tons due to constraints on development of new supply, marking the smallest annual increase in the past decade, the report said.



The report showed that anticipated supply during the period was between 7 million and 20 million tons but it undershot even the lowest end of the forecast range.



The report expects Europe&#8217;s LNG demand to grow in 2025 and beyond.



&#8220;Europe will continue to need LNG into the 2030s to balance the growing share of intermittent renewables in its power sector. In the longer term, existing natural gas infrastructure could be used to import bio-LNG or synthetic LNG and be repurposed for the import of green hydrogen,&#8221; the report said.



Significant growth in LNG supply will come from top exporter the United States, potentially reaching 180 million tons a year by 2030 and accounting for a third of global supply.



Analysts expect that together with Qatar’s massive North Field expansion project set to come online in 2026, the United States and Qatar could provide around 60% of global LNG supply by 2035.



(Reporting by Marwa Rashad in London and Emily Chow in Singapore; Editing by Sonali Paul and David Evans)

KWNFLKVDZBNCHKDHIAWQFVHUEU

Shell expects 60% rise in global LNG demand by 2040

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="427" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/ZGP5BDQKUZLKTKT6I23C653ZKA.avif" alt="" class="wp-image-590550"/><figcaption class="wp-element-caption">A farmer holds cocoa beans while he is drying them at a village in Sinfra, Ivory Coast April 29, 2023. REUTERS/Luc Gnago/File Photo</figcaption></figure>



PARIS, Feb 24 (Reuters)&nbsp;&#8211;&nbsp;Cocoa production in Ivory Coast in the 2024/25 season is on course to remain around last season&#8217;s disappointing level after adverse weather and crop conditions continued, the country&#8217;s agriculture minister said.



A sharp fall in output in Ivory Coast, the world&#8217;s biggest supplier of the chocolate ingredient, and number two producer Ghana in 2023/24 triggered a surge in international prices to record highs last year.



&#8220;It&#8217;s the same trend,&#8221; Kobenan Kouassi Adjoumani told Reuters on Monday regarding prospects for 2024/25 production, adding it was too early to give a firm forecast.



The minister&#8217;s assessment was in line with a Reuters analyst poll this month that gave an average expectation of 1.80 million metric tons for 2024/25 versus 1.76 million in 2023/24.



Echoing comments by farmers, Adjoumani said recent rain had improved prospects for the April-to-September mid-crop, which follows the country&#8217;s October-to-March main crop.



Faced with adverse climate effects and disease in ageing cocoa trees, Ivory Coast was engaged in replanting and agroforestry measures that should boost production potential within two years, he added in an interview at the annual Paris farm show.



Rocketing international prices have also fuelled smuggling of cocoa beans from Ivory Coast, whose fixed price for growers is much lower despite an increase last year.



There has been talk that around 100,000 to 200,000 tons of cocoa has been illegally exported to neighbouring countries such as Guinea this season, but a crackdown by the government has curbed the traffic, Adjoumani said.



In other agricultural markets, Ivory Coast could become self-sufficient in rice from next year after investment in seeds and farm machinery helped accelerate growth in production to 1.5 million tons last year, narrowing the gap with consumption of 2.1 million tons, he said.



(Reporting by Gus Trompiz; editing by David Evans)

ZGP5BDQKUZLKTKT6I23C653ZKA

Ivory Coast’s cocoa crop to hold near last season’s, minister says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="360" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_Y256STMOGJPFPMSOXGSZ3LRYQQ.jpg" alt="" class="wp-image-590532" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_Y256STMOGJPFPMSOXGSZ3LRYQQ.jpg 640w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_Y256STMOGJPFPMSOXGSZ3LRYQQ-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_Y256STMOGJPFPMSOXGSZ3LRYQQ-160x90.jpg 160w" sizes="auto, (max-width: 640px) 100vw, 640px" /><figcaption class="wp-element-caption">A French farmer harvests his field of maize in Thun-L&#8217;Eveque, France, September 29, 2022. REUTERS/Pascal Rossignol/File Photo </figcaption></figure>



PARIS, Feb 24 (Reuters)&nbsp;&#8211;&nbsp;Grain crops in the European Union were still mainly in good condition by mid-February, but excess moisture in France and dryness in Eastern Europe remained risks for this year&#8217;s harvest, the EU&#8217;s crop monitoring service said on Monday.



In France, heavy rainfall in the northwest in January exacerbated already-high soil moisture levels, creating unfavourable conditions for crop development, MARS said in a report.



The wet start to the year has fuelled concerns in France, the EU&#8217;s biggest grain producer, of a repeat of the soggy 2024 harvest that featured the smallest wheat crop since the 1980s.



The condition of French wheat declined sharply between early December and early February before steadying, according to data from the farm office FranceAgriMer.



In Eastern Europe, crops in western Romania and Bulgaria have suffered in particular from limited moisture since the start of the season, and those areas could see resowing in spring, MARS said.



Severe frosts expected during the second half of February were also a threat to crops in Eastern Europe already weakened by a lack of rain, particularly if they were without protective snow cover, it said.



Crop damage in the EU, however, was estimated to be relatively limited so far compared with eastern Ukraine, Morocco and Algeria that have endured more acute dryness, it added.



(Reporting by Gus Trompiz; Editing by Tasim Zahid)

https___cloudfront-us-east-2.images.arcpublishing.com_reuters_Y256STMOGJPFPMSOXGSZ3LRYQQ

Most EU grain crops in good shape but moisture risks linger

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="463" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/2PLENK7UEVP6LHO27XU5VACMUU.avif" alt="" class="wp-image-590509"/><figcaption class="wp-element-caption">South African Rand coins are seen in this illustration picture taken October 30, 2020. REUTERS/Mike Hutchings/Illustration/File Photo</figcaption></figure>



JOHANNESBURG, Feb 25 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand was stable early on Tuesday as U.S. President Donald Trump&#8217;s tariff plans, uncertainty over fiscal policy and stance in the geopolitical arena weighed on U.S. markets.



The rand traded flat at 18.3750 against the dollar&nbsp;ZAR=D3, as of 0649 GMT. The dollar&nbsp;=USD&nbsp;last traded weaker against a basket of currencies.



&#8220;Tariff threats and the risk of counter-tariffs, uncertainty over fiscal policy given the mass retrenchments, and the U.S.&#8217; stance in the geopolitical arena&#8230; appear to be weighing on U.S. markets,&#8221; said ETM Analytics in a research note.



&#8220;Without any market-moving data to trade on, these international developments will guide much of the domestic market&#8217;s direction.&#8221;



South Africa&#8217;s composite leading business cycle indicator ZALEAD=ECI fell 1.8% month on month in December, central bank data showed on Tuesday.



Domestic-focussed investors await January&#8217;s consumer inflation figures&nbsp;ZACPIY=ECI&nbsp;on Wednesday and producer inflation data&nbsp;ZAPPIY=ECI&nbsp;for the same month on Thursday for clues on the health of Africa&#8217;s most industrialised economy.



South Africa&#8217;s benchmark 2030 government bond&nbsp;ZAR2030=&nbsp;was slightly stronger in early deals, with the yield down 1 basis point to 9.105%.



(Reporting by Tannur Anders and Sfundo Parakozov; Editing by Rashmi Aich)

2PLENK7UEVP6LHO27XU5VACMUU

South African rand stable as markets watch Trump policy developments

JOHANNESBURG, Feb 24 (Reuters)&nbsp;&#8211;&nbsp;Google&nbsp;GOOGL.O&nbsp;could be required to pay up to 500 million rand ($27.29 million) a year in compensation to South African media outlets after the country&#8217;s competition watchdog found the tech giant guilty of anti-competitive practices, while Meta&nbsp;META.O&nbsp;and X also face fines.



In provisional findings from a probe into market activities, released on Monday, South Africa&#8217;s Competition Commission said that&nbsp;Google&#8217;s algorithm distorts competition between news media organisations insofar as it overrepresents global news media in South Africa for search and top stories and underrepresents local language and community media.



&#8220;This inequity has materially contributed to the erosion of the media in South Africa over the past 14 years and will continue to do so unless remedied,&#8221; the watchdog&#8217;s report said.



To remedy this, it recommended that&nbsp;Google&nbsp;compensate the South African news media by 300 million to 500 million rand annually for a three to five-year period, &#8220;whilst putting in place changes to search that will sustainably create shared value with the media through increases in referral traffic.&#8221;



The watchdog will publish a final report later this year, with all parties concerned given until April&nbsp;7&nbsp;to submit evidence to support their case.



Google&nbsp;said that it will review the report in detail but disagreed with the claim that it has taken disproportionate value from publishers.



&#8220;In 2023, our products like&nbsp;Google&nbsp;Search and News generated an estimated 350 million rand in referral traffic value for South African publishers while we earned less than 19 million rand from ads displayed next to news queries,&#8221;&nbsp;Google&nbsp;said in a statement.



&#8220;Alongside this, we have invested in products, training and partnerships to support publishers and the broader news ecosystem, and will continue to do so.&#8221;



On social media companies, the Competition Commission recommended Meta-owned Facebook and X stop &#8220;deprioritising South Africa news media posts with links&#8221; in the home feed, For You and Lastestfeed algorithm and restore referral traffic to the media.



It wants Meta and&nbsp;Google&#8217;s YouTube to improve the ability of news media to monetize their content on these platforms through increases in revenue share.



If all these companies fail to implement these remedies within six months after the final report, a 5-10% digital advertising tariff or levy will be imposed, according to the report.



Meta was not immediately available for comment.



The remedies only apply to the South African operations of these companies, the Commission said.



($1 = 18.3215 rand)



(Reporting by Nqobile Dludla; Editing by Susan Fenton)

65GOX4BM3RI3VORRYQ5THS3W6M

Google, Meta face penalties for anti-competitive behaviour towards South African news media

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="427" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YRJ4HC4PYZMV5B3TRRZSVHPF7A-1.jpg" alt="" class="wp-image-590240" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YRJ4HC4PYZMV5B3TRRZSVHPF7A-1.jpg 640w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YRJ4HC4PYZMV5B3TRRZSVHPF7A-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YRJ4HC4PYZMV5B3TRRZSVHPF7A-1-135x90.jpg 135w" sizes="auto, (max-width: 640px) 100vw, 640px" /><figcaption class="wp-element-caption">Roasted coffee beans are seen on display in Bogota, Colombia June 5, 2019. REUTERS/Luisa Gonzalez</figcaption></figure>



KAMPALA, Feb 24 (Reuters)&nbsp;&#8211;&nbsp;The value of Uganda&#8217;s coffee exports surged 83.4% in January, compared to the same month a year ago, boosted by high global prices of the commodity, the agriculture ministry said.



Uganda is Africa&#8217;s largest exporter of coffee, followed by Ethiopia.



The east African country shipped 550,341 60-kilogram bags of coffee worth $156.5 million, 83.4% higher than the value of volumes shipped in the same month last year, the ministry of agriculture, animal industry and fisheries (MAAIF) said in a report seen by Reuters on Monday.



In terms of quantity, January&#8217;s shipments were 14.4% higher than the volumes exported a year ago.



Global coffee prices have been driven higher by dry weather conditions in Brazil and Vietnam, MAAIF said.



(Reporting by Elias Biryabarema; Editing by Hereward Holland and David Evans)

https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YRJ4HC4PYZMV5B3TRRZSVHPF7A

Value of Uganda’s coffee exports surge 83% in January on the year

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="427" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/ZVW7NKNERBPHZKW4NK6ZSJEQLM.avif" alt="" class="wp-image-590235"/><figcaption class="wp-element-caption">A general view of the cityscape of Addis Ababa, Ethiopia, April 24, 2024. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



ADDIS ABABA, Feb 24 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia&#8217;s&nbsp;central bank said on Monday it was conducting a foreign exchange auction for $60 million, with the sale open to all banks.



In July 2024, Ethiopia&#8217;s central bank removed restrictions on the foreign currency market, a crucial step towards securing funding from the International Monetary Fund and making progress on a long-delayed debt overhaul.



The National Bank of Ethiopia said the auction was being held to offset what could become excessive money supply growth.



In December 2023, Ethiopia which is struggling with high inflation and chronic foreign currency shortages, became the third economy on the African continent in as many years to default on its debt.



(Reporting by Dawit Endeshaw; Writing by George Obulutsa; Editing by Andrew Cawthorne and Susan Fenton)

ZVW7NKNERBPHZKW4NK6ZSJEQLM

Ethiopia central bank holds $60 million foreign exchange auction

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="447" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/EZE77FVNOZJDZBIVDI2UJD5UNM-1.avif" alt="" class="wp-image-590203"/><figcaption class="wp-element-caption">A drone view shows South Africa&#8217;s Sasol petrochemical refinery in Sasolburg, southwest of Johannesburg, South Africa, November 19, 2024. REUTERS/Thando Hlophe/File Photo</figcaption></figure>



Feb 24 (Reuters)&nbsp;&#8211;&nbsp;South African petrochemical firm Sasol&nbsp;SOLJ.Jis exiting the coal export market as it starts a de-stoning project to enhance the quality of feedstock into its core synthetic fuel and chemicals business, executives said on Monday.



Sasol produces fuel and chemicals from coal and gas, while exporting about 2 million tons of the fossil fuel annually.



However, the quality of the coal going into Sasol&#8217;s Secunda operations has been poor for years, mainly due to high stone content. This has resulted in the company producing low volumes of fuels and chemicals, persistently underperforming historical output levels around 7.6 million tons.



The company is repurposing its current coal export plant into one which reduces stone content to address the quality problem, CEO Simon Baloyi said during a results call.



The quality of the coal coming out of its mines &#8220;was no longer export quality&#8221;, Baloyi said, adding that the de-stoning project would restore fuel and chemical production to historical levels.



&#8220;We make more money by beneficiating coal into fuel and chemicals than we do selling it as export coal,&#8221; Sasol&#8217;s finance director Walt Bruns told Reuters in an interview.



Sasol will lease its allotted coal export quota at the Richards Bay Coal Terminal to other miners, Bruns added.



Earlier on Monday, Sasol reported a 31% decline in headline earnings per share to 14.13 rand ($0.7712)in the six months to December 2024, from 20.37 rand per share previously&nbsp;on a fall in oil prices and lower sales volumes.



The company said it did not declare a dividend because it ended the period with a negative free cash flow of 1.1 billion rand, while its net debt of $4.3 billion exceeded levels set in its capital allocation policy.



($1 = 18.3223 rand)



(Reporting by Nelson Banya; Editing by Sonali Paul, Tom Hogue and Chizu Nomiyama)

EZE77FVNOZJDZBIVDI2UJD5UNM (1)

Sasol exits coal export market, focuses on quality upgrade

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/istockphoto-1076949610-612x612-1.jpg" alt="" class="wp-image-590139" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/istockphoto-1076949610-612x612-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/istockphoto-1076949610-612x612-1-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Feb 24 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, company announcements, equity and currency market moves may affect South African markets on Monday.



ECONOMIC EVENTS



South African Treasury bill auction



Foreigners&#8217; trading in South African bonds and equities



COMPANIES



Sasol skips dividend after profit declines 31%



Prosus to buy Just Eat Takeaway.com, to create a European food delivery firm



SOUTH AFRICAN MARKETS



South Africa&#8217;s rand was stable on Friday after a volatile week in which it weakened over the last-minute postponement of the national budget but then recovered thanks to buoyant global gold price.



On the stock market, the Top-40&nbsp;.JTOPI&nbsp;index was little changed.&nbsp;.JZAR/



GLOBAL MARKETS



European shares and the euro climbed on Monday as Germany&#8217;s election produced a mainstream outcome, while Wall Street futures firmed on hopes results from AI diva Nvidia this week would justify the tech sector&#8217;s sky-high valuations.&nbsp;MKTS/GLOB



WALL STREET



U.S. stocks tumbled on Friday, extending their selloff in the wake of dour economic reports and closing the book on a holiday-shortened week fraught with new tariff threats and worries of softening consumer demand.&nbsp;.N



GOLD



Gold prices edged up to hover near recent record highs on Monday, helped by weakness in the U.S. dollar, with attention shifting to a key U.S. inflation report set for release later this week.&nbsp;GOL/



&#8211; &#8211; &#8211; &#8211;



Some of the main stories out in the South African press:



BUSINESS DAY



&#8211; Treasury optimistic SA will be off greylist by October



FIN 24



&#8211; Load shedding downgraded to Stage 4 until further notice



&#8211; SA must push neighbours for better customs deal, says PwC



(Compiled by Sfundo Parakozov)

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South African Markets – Factors to watch on February 24

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="439" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/VDGM6XKHK5NGFAIOBJ6DXGAHQU.avif" alt="" class="wp-image-590136"/><figcaption class="wp-element-caption">A South African Rand is seen in this illustration picture taken November 5, 2020. REUTERS/Mike Hutchings/Illustration/File Photo</figcaption></figure>



JOHANNESBURG, Feb 24 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand strengthened on Monday, ahead of a flurry of local data this week which will give traders clarity on the state of Africa&#8217;s most industrialised economy.



At 0748 GMT, the rand traded at 18.39 against the dollar&nbsp;ZAR=D3, 0.3% firmer than its previous close.



Domestic investors will focus on South Africa&#8217;s monthly consumer inflation reading on Wednesday, producer inflation figures on Thursday and trade and budget balance data on Friday.



The dollar =USD was last around 0.1% weaker against a basket of other major currencies with traders digesting last week&#8217;s dour U.S. economic releases and President Donald Trump&#8217;s fresh tariff threats.



&#8220;On the one hand, the USD is losing some ground and will support the ZAR. On the other hand, a tremendous amount of data will keep investors cautious about taking any significant directional position,&#8221; ETM Analytics said in a research note.



On the stock market, the Top-40&nbsp;.JTOPI&nbsp;index was down about 0.7%.



South Africa&#8217;s benchmark 2030 government bond&nbsp;ZAR2030=&nbsp;was marginally stronger, with the yield down 0.5 basis point to 9.165%.



(Reporting by Sfundo Parakozov, Editing by Bhargav Acharya, Kirsten Donovan)

VDGM6XKHK5NGFAIOBJ6DXGAHQU

South African rand firms ahead of data-packed week

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="378" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/TBRVY76TJVLNPFA532BZK3H3YQ.avif" alt="" class="wp-image-590133"/><figcaption class="wp-element-caption">A pit head is seen at the Tumela platinum mine, an Anglo-American open pit mine located in Thabazimbi, Limpopo Province, South Africa June 9, 2016. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



Feb 24 (Reuters)&nbsp;&#8211;&nbsp;Anglo American Platinum&nbsp;AMSJ.J&nbsp;said it had halted operations at its Tumela mine in South Africa on Thursday after excessive rains caused flooding, though the company maintained its production forecast for the year.



The world&#8217;s top producer of platinum group metals (PGM) used to curb vehicle emissions said in a statement that heavy rains in the northern part of South Africa over the past week had caused widespread flooding.



Tumela mine, the smaller underground operation in Amplats&#8217; Amandelbult complex, was the most impacted, it said.



Operations in the rest of the complex, including the main Dishaba mine, the concentrator and other infrastructure, were largely unaffected and operations there had resumed on Monday after a temporary pause.



A detailed impact assessment and recovery plan to ensure safe production at Tumela mine, which produces about 10% of Amplats&#8217; monthly metal-in-concentrate, was under way.



&#8220;Preliminary indications are that the 2025 metal-in-



concentrate production guidance of 3 million to 3.4 million PGM ounces is not expected to be impacted,&#8221; Amplats said.



Amplats on February 17 reported a 40% decline in profit for 2024 to 8.4 billion rand ($458.56 million) as lower PGM prices continue to hurt its income.



($1 = 18.3184 rand)



(Reporting by Nelson Banya; Editing by Aidan Lewis)

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Amplats halts operations at South African mine after heavy rains

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="402" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/PX47AV3OGVODBAQQ2I46RGINQA.avif" alt="" class="wp-image-590112"/><figcaption class="wp-element-caption">Prosus&#8217; logo is pictured on a smartphone in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration/File Photo&nbsp;</figcaption></figure>



JOHANNESBURG, Feb 24 (Reuters)&nbsp;&#8211;&nbsp;Dutch technology investor Prosus&nbsp;PRX.AS&nbsp;has agreed to buy Just Eat Takewaway.com&nbsp;TKWY.AS&nbsp;for 4.1 billion euros ($4.3 billion) to create a &#8220;European tech champion&#8221; of food delivery.



Prosus, majority owned by South Africa&#8217;s Naspers&nbsp;NPNJn.J, is also the biggest shareholder in Glovo owner Delivery Hero&nbsp;DHER.DE&nbsp;with a 28% stake, it said in a statement on Monday.



The deal would mark a significant shift in the European food delivery market and have potential global implications, as it would make Prosus the fourth largest food delivery company in the world behind Meituan&nbsp;3690.HK, DoorDash&nbsp;DASH.O&nbsp;and Uber&nbsp;UBER.N, ING analysts said in a note.



With a food business spanning more than 70 countries, Prosus also owns Latin America&#8217;s top food delivery platform iFood, has a 25% stake in India&#8217;s leading food and grocery delivery platform Swiggy and a 4% stake in Meituan, it said.



Shares in Prosus fell 6% in Amsterdam after the announcement, while Just Eat surged 55% to match the premium of the offer price. Naspers&#8217; shares fell 6.3% in Johannesburg.



Prosus is offering 20.30 euros per a Just Eat share. The offer for the entire share capital is unanimously supported by Just Eat&#8217;s management and supervisory board.



Shares in Delivery Hero jumped 5%. A German trader said some analysts were seeing the deal as a first step towards a merger between the Dutch and German food delivery groups.



Prosus CEO Fabricio Bloisi said there was no plan or project on Delivery Hero right now.



&#8220;Our focus is growth and with growth we expect to create more jobs in many dimensions. More jobs in technology sector but also more jobs in restaurants and more opportunities for drivers too,&#8221; he told reporters in a call, referring to Just Eat.



Bloisi added that the new technology investment, including AI, would be aimed at making Just Eat&#8217;s delivery model more efficient.



&#8220;We are not looking forward to other big news in food delivery or acquisitions right now,&#8221; he said.



Citi analysts estimated that Prosus has some $5 billion to invest in further M&amp;A, though they expect the near term focus to be on execution and growth in its owned assets.



Just Eat&#8217;s management will remain in place and the company will stay based in Amsterdam, its CEO Jitse Groen said in a separate media call.



Earlier on Monday, Just Eat reported 36% growth in its 2024 core profit.



($1 = 0.9513 euros)



(Reporting by Nqobile Dludla in Johannesburg and Leo Marchandon in Gdansk, additional reporting by Paolo Laudani and Toby Sterling; Editing by Tom Hogue and Milla Nissi)

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Prosus to buy Just Eat to create a European food delivery ‘champion’

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="447" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/EZE77FVNOZJDZBIVDI2UJD5UNM.avif" alt="" class="wp-image-590109"/><figcaption class="wp-element-caption">A drone view shows South Africa&#8217;s Sasol petrochemical refinery in Sasolburg, southwest of Johannesburg, South Africa, November 19, 2024. REUTERS/Thando Hlophe/File Photo</figcaption></figure>



Feb 24 (Reuters)&nbsp;&#8211;&nbsp;South African petrochemical firm Sasol&nbsp;SOLJ.J&nbsp;on Monday skipped paying a dividend after reporting a 31% decline in half-year profit on a fall in oil prices and lower sales volumes.



Sasol&#8217;s headline earnings per share for the six months to December 2024 were 14.13 rand ($0.7712), down from 20.37 rand during the same period a year earlier.



The company, which produces fuel and chemicals from coal and gas, said its revenue was 10% lower at 122.1 billion rand, mainly due to a 13% drop in the average rand price per barrel of Brent crude oil and a significant decline in refining margins.



Sasol also reported a 5% decrease in sales volumes as a result of lower production and lower market demand.



The company said it did not declare a dividend because it ended the period with a negative free cash flow of 1.1 billion rand, while its net debt of $4.3 billion exceeded levels set in its capital allocation policy.



($1 = 18.3223 rand)



(Reporting by Nelson Banya; Editing by Sonali Paul and Tom Hogue)

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Sasol skips dividend after profit declines 31%

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="385" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/V3GAS2DKHFO7PLO4JIKEEFCTKY.avif" alt="" class="wp-image-590106"/><figcaption class="wp-element-caption">The retired coal-fired Komati Power Station, operated by Eskom, is seen near Komati village, in the Mpumalanga province in South Africa, May 9, 2024. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



CAPE TOWN, Feb 24 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s Eskom has managed to restore eight units at power plants after implementing its highest stage of controlled power cuts early on Sunday, the power utility said after multiple failures at Majuba and Camden power stations over the weekend.



On Saturday, Eskom applied Stage 3 power cuts, known locally as loadshedding, effectively cutting 3,000 megawatts to the national grid.



&#8220;Of the 10 units that we lost overnight, we have essentially returned six units,&#8221; Eskom group CEO Dan Marokane told reporters on Sunday.



He said five to six units were expected to become operational during the course of the day, bolstering the 3,200 MW of capacity recovered overnight.



&#8220;We anticipate to get out of this stage by the end of the week,&#8221; he said, adding that given the pace of recovery Eskom would consider dialling down its power cuts by Monday.



Early on Monday morning, Eskom said the power outages would be reduced to Stage 4 until further notice.



Regular breakdowns at Eskom&#8217;s fleet of ageing coal-fired plants, providing the bulk of electricity in Africa&#8217;s most industrialised economy, are often the cause of loadshedding &#8211; an incremental system where Stage 1 sees 1,000 MW cut from the system, with Stage 6 the highest implemented to date.



(Reporting by Wendell Roelf; Editing by William Mallard, Tomasz Janowski and Rashmi Aich)

Reuters

Galp’s new well in Namibia’s Mopane finds more oil, shares rise

Vitol, Glencore win $380 million award in Nigerian LNG litigation

Nigeria’s NNPC, Stena Bulk and Caverton launch new shipping venture

Shell expects 60% rise in global LNG demand by 2040

Ivory Coast’s cocoa crop to hold near last season’s, minister says

Most EU grain crops in good shape but moisture risks linger

South African rand stable as markets watch Trump policy developments

Google, Meta face penalties for anti-competitive behaviour towards South African news media

Value of Uganda’s coffee exports surge 83% in January on the year

Ethiopia central bank holds $60 million foreign exchange auction

Sasol exits coal export market, focuses on quality upgrade

South African Markets – Factors to watch on February 24

South African rand firms ahead of data-packed week

Amplats halts operations at South African mine after heavy rains

Prosus to buy Just Eat to create a European food delivery ‘champion’

Sasol skips dividend after profit declines 31%

South Africa faces highest level power cuts as generation units fail

News Tips

Advertise With Us

Reuters

Galp’s new well in Namibia’s Mopane finds more oil, shares rise

Vitol, Glencore win $380 million award in Nigerian LNG litigation

Nigeria’s NNPC, Stena Bulk and Caverton launch new shipping venture

Shell expects 60% rise in global LNG demand by 2040

Ivory Coast’s cocoa crop to hold near last season’s, minister says

Most EU grain crops in good shape but moisture risks linger

South African rand stable as markets watch Trump policy developments

Google, Meta face penalties for anti-competitive behaviour towards South African news media

Value of Uganda’s coffee exports surge 83% in January on the year

Ethiopia central bank holds $60 million foreign exchange auction

Sasol exits coal export market, focuses on quality upgrade

South African Markets – Factors to watch on February 24

South African rand firms ahead of data-packed week

Amplats halts operations at South African mine after heavy rains

Prosus to buy Just Eat to create a European food delivery ‘champion’

Sasol skips dividend after profit declines 31%

South Africa faces highest level power cuts as generation units fail

News Tips

Advertise With Us

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