Company News in Brief
South Africa opens freight rail network to private firms
South Africa's government said on Friday it will allow private firms to run trains on its freight rail network, aiming to boost efficiency as state-owned logistics firm Transnet struggles to keep up with demand.
Transnet, which runs the country's freight rail and port services, has faced equipment shortages and maintenance backlogs worsened by widespread cable theft and vandalism, prompting the government to seek private sector involvement.
Transport Minister Barbara Creecy said 11 out of 25 train operating companies that applied for access to the freight network had met the requirements and will proceed to the next stage of negotiations and contracting, without naming the companies.
South African logistics firm Grindrod said on Friday it had been granted access to the Transnet network.
"(The companies) are not cannibalising Transnet freight, they are adding capacity to what Transnet freight is already carrying," Creecy told reporters.
The firms secured slots across 41 routes, with the initiative targeting routes used to transport bulk commodities like coal, iron ore, chrome, manganese, sugar and fuel.
-REUTERS
South African trade body recommends duties to curb steel imports
A South African government trade body looking into the country's struggling steel sector proposed import duties starting at 10% to defend the industry from an influx of imports mainly from China.
The International Trade Administration Commission released its preliminary findings after a broad review of steel tariffs ordered by the government in March, as part of a response to oversupply, weak local demand and high input costs in South Africa's steel industry.
ITAC recommended the government takes emergency action under World Trade Organisation rules to defend the sector and proposed import duties starting at 10% on steel products, it said.
Imports are estimated to meet around 35% of total domestic consumption, leaving companies such as ArcelorMittal South Africa, the country's biggest primary steel producer, at risk of collapse and putting thousands of jobs in danger.
-REUTERS
Sasol swings to profit on higher chemical prices, lower writedowns
South African petrochemical firm Sasol said on Monday it swung to an annual profit on the back of higher chemicals prices, tighter cost controls and lower asset writedowns.
The company, which produces fuel and chemicals from coal and gas, posted basic earnings per share of 10.60 rand ($0.6070) for the year ended June 30, compared to a 69.94 rand loss per share last year.
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Sasol also benefited from a 4.3 billion rand payout from Transnet, after it claimed in a legal suit the state-owned logistics firm had overcharged for oil transportation over several years.
The company said its turnover fell 9%, mainly due to lower sales volumes and reductions in rand oil prices and refining margins.
However, it managed to keep cash fixed cost increases below inflation, while capital expenditure of 25.4 billion rand was 16% lower than the previous year.
Sasol also recorded significantly lower impairments of 20.7 billion rand, compared with 74.9 billion rand in the previous year.
Asset writedowns in the 2025 financial year were related to its Secunda and Sasolburg liquid fuels refinery operations, Mozambique gas production sharing agreement and exploration project, and Italian chemicals business.
The bulk of Sasol's impairments the previous year was related to its U.S chemicals operations, hit by low prices and weak demand.
Sasol once again skipped dividend payments as its $3.7 billion net debt remained above the $3 billion debt cap in terms of its dividend policy.
-REUTERS
South Africa's government said on Friday it will allow private firms to run trains on its freight rail network, aiming to boost efficiency as state-owned logistics firm Transnet struggles to keep up with demand.
Transnet, which runs the country's freight rail and port services, has faced equipment shortages and maintenance backlogs worsened by widespread cable theft and vandalism, prompting the government to seek private sector involvement.
Transport Minister Barbara Creecy said 11 out of 25 train operating companies that applied for access to the freight network had met the requirements and will proceed to the next stage of negotiations and contracting, without naming the companies.
South African logistics firm Grindrod said on Friday it had been granted access to the Transnet network.
"(The companies) are not cannibalising Transnet freight, they are adding capacity to what Transnet freight is already carrying," Creecy told reporters.
The firms secured slots across 41 routes, with the initiative targeting routes used to transport bulk commodities like coal, iron ore, chrome, manganese, sugar and fuel.
-REUTERS
South African trade body recommends duties to curb steel imports
A South African government trade body looking into the country's struggling steel sector proposed import duties starting at 10% to defend the industry from an influx of imports mainly from China.
The International Trade Administration Commission released its preliminary findings after a broad review of steel tariffs ordered by the government in March, as part of a response to oversupply, weak local demand and high input costs in South Africa's steel industry.
ITAC recommended the government takes emergency action under World Trade Organisation rules to defend the sector and proposed import duties starting at 10% on steel products, it said.
Imports are estimated to meet around 35% of total domestic consumption, leaving companies such as ArcelorMittal South Africa, the country's biggest primary steel producer, at risk of collapse and putting thousands of jobs in danger.
-REUTERS
Sasol swings to profit on higher chemical prices, lower writedowns
South African petrochemical firm Sasol said on Monday it swung to an annual profit on the back of higher chemicals prices, tighter cost controls and lower asset writedowns.
The company, which produces fuel and chemicals from coal and gas, posted basic earnings per share of 10.60 rand ($0.6070) for the year ended June 30, compared to a 69.94 rand loss per share last year.
The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.
Sasol also benefited from a 4.3 billion rand payout from Transnet, after it claimed in a legal suit the state-owned logistics firm had overcharged for oil transportation over several years.
The company said its turnover fell 9%, mainly due to lower sales volumes and reductions in rand oil prices and refining margins.
However, it managed to keep cash fixed cost increases below inflation, while capital expenditure of 25.4 billion rand was 16% lower than the previous year.
Sasol also recorded significantly lower impairments of 20.7 billion rand, compared with 74.9 billion rand in the previous year.
Asset writedowns in the 2025 financial year were related to its Secunda and Sasolburg liquid fuels refinery operations, Mozambique gas production sharing agreement and exploration project, and Italian chemicals business.
The bulk of Sasol's impairments the previous year was related to its U.S chemicals operations, hit by low prices and weak demand.
Sasol once again skipped dividend payments as its $3.7 billion net debt remained above the $3 billion debt cap in terms of its dividend policy.
-REUTERS
