Carlos Slim had a tough year, the worst among the wealthiest people of the world.
Since the start of 2015, the Mexican executive lost almost $20 billion, or about the size of Honduras’s economy, according to the Bloomberg Billionaires Index. The shares of his America Movil SAB telecommunications giant are heading for their biggest decline since 2008. The company has suffered under regulatory pressures in Mexico, where it’s now forced to share the infrastructure that allowed it to dominate the mobile and fixed-line market for more than a decade.
Among conditions working against Mexico City-based America Movil are: a dismal outlook for Brazil’s economy, its second-biggest market; stronger competitors at home; and limited opportunities to expand in Europe. Slim, now the fifth-richest person in the world — down from third earlier this year — owns 57 percent of the company. The stock, down 18 percent this year, lost its long-held position as the most-weighted stock on Mexico’s benchmark index, making Slim the biggest loser among the world’s 400 wealthiest individuals.
“There really isn’t anything near-team to get investors excited so the focus has turned to the deteriorating profitability in the Mexican market,” Kevin Smithen, an analyst with Macquarie Securities USA Inc., said in an interview from New York. “You really need to see a more credible expansion strategy in Europe or evidence of a financial turnaround in Brazil” to boost stock prices.
An America Movil press official declined to comment.
The telecommunications company has relied on Brazil, Austria and the U.S. to expand, as regulation weakens the competitive advantage America Movil has enjoyed in Mexico, where it controls about 70 percent of all mobile phones and 62 percent of fixed lines. On top of that, AT&T Inc. bought two rival businesses in Mexico — NII Holdings Inc.’s Nextel Mexico business and Grupo Iusacell SA — pressuring prices and increasing the battle for users in its home market.
Mexico’s profit margin shrank to 40.3 percent in the last quarter from 44.8 percent a year earlier, based on earnings before interest, taxes, amortization and depreciation, and is estimated to fall again next year, according to a Credit Suisse Group AG report in December. While America Movil’s decision to spin off about 11,000 wireless towers for rent earlier this year is likely to lower debt, it’s small relative to the company’s size, according to the report.
“The change in telecom regulations in Mexico attracted competition, and now AT&T is investing heavily to create a strong mobile player in the country,” Credit Suisse analyst Daniel Federle said in the note. “Competition will get tougher in the following years.”
SEC Gives Dangote Cement Waiver to File AFS Within 60 Days of Year-End
Dangote Cement Plc has received approval from the Securities and Exchange Commission (SEC) not to file its fourth-quarter unaudited returns within thirty days of its period end.
The company disclosed in a statement signed by Edward Imoedemhe, Deputy Company Secretary.
However, the company must file its annual audited financial statements within sixty days of its year-end.
Dangote Cement, therefore, announced that it will file its Audited Financial Statements for the period ended December 31, 2021, on or before February 28, 2022.
The statement reads “Dangote Cement Plc (“DCP”) hereby announces that further to its request for a waiver, the Securities and Exchange Commission has granted approval for DCP not to file its Fourth Quarter Unaudited Returns within thirty days of its period end, but to file its Annual Audited Financial Statements within sixty days of its year end.
“In view of this, DCP will file its Audited Financial Statements for the year ended December 31 2021, on or before February 28 2022.”
Ardova Plc Commends Stanbic IBTC’s Support for LPG Storage Project
AP LPG terminal, a fully owned subsidiary of Ardova PLC, on Wednesday, 19 January 2022, performed the groundbreaking ceremony for the construction of a 20,000 metric tonne Liquified Petroleum Gas (LPG) storage terminal at the project site in Ijora, Lagos. The ceremony signified the official commencement of construction activities which is expected to be completed in December 2022.
Upon completion, the project will be the largest LPG storage facility in the nation and will ease some of the existing bottlenecks in the value chain for the supply of cleaner and more efficient energy for domestic use (cooking gas) in Nigeria, amongst other strategic benefits.
Olumide Adeosun, Group Chief Executive Officer, Ardova PLC, expressed his appreciation to Stanbic IBTC Infrastructure Fund for its commitment to the project and noted that the importance of having formidable partners for project development, planning, execution, and investment support cannot be overemphasised.
“We are pleased to have the support of the Stanbic IBTC Infrastructure Fund for its pioneering role in a transformational project within the LPG value chain, which will undoubtedly accelerate the various energy transition initiatives currently underway at Ardova PLC. This support has helped us commence construction of this 20,000 metric tonne LPG storage terminal, which is expected to bring efficiency and reliability of LPG supply to Nigerian consumers as well as create long term value for our shareholders; and for this, we are thankful”.
He noted further that “Beyond the cleaner energy premise, approximately 600 direct jobs will be created during the construction of the project and there is a multiplier effect of about additional 1,400 indirect jobs that will be created during the construction period after which it settles to about 250-300 jobs once the project becomes operational.
Oladele Sotubo, Chief Executive, Stanbic IBTC Asset Management, noted in his remark that “Across the globe, cleaner energy investments have continued to be the focus. Given the environmental sustainability benefits of this project, Stanbic IBTC Infrastructure Fund’s investment philosophy is properly aligned, hence the support for the 20,000 metric tonne Liquified Petroleum Gas (LPG) storage facility terminal”.
A portion of the first Tranche of the N100 billion Stanbic IBTC Infrastructure Fund, which closed in August 2021, was used to part finance the LPG storage terminal.
Sotubo went on to express his gratitude to Ardova for partnering with Stanbic IBTC Infrastructure Fund and used the opportunity to also commend all the Tranche 1 investors, including institutional investors such as Trustfund Pensions, Veritas Glanvills Pensions, NPF Pensions, Fidelity Pensions, Crusader Sterling Pensions, Agip CPFA, Progress Trust CPFA, AIICO Insurance, and other High Networth Individuals (HNIs), for the confidence reposed in the fund. He pointed out the impact their investment is making in terms of solving some of Nigeria’s infrastructure bottlenecks, creating jobs while earning returns. “As an organisation, we remain committed to bridging Nigeria’s infrastructure deficit through the provision of investment capital needed to develop projects”, he added”.
The Stanbic IBTC Asset Management Chief Executive highlighted that the Stanbic IBTC Infrastructure Fund remains dedicated to meeting the investment needs of its clients, providing them with the right investment vehicles, opportunities and professional investment services needed to achieve their financial objectives. He urged institutional investors such as pension fund administrators, insurance companies and asset managers to explore the unique opportunities of the Stanbic IBTC Infrastructure Fund in meeting their long-term financial goals.
Stanbic IBTC Infrastructure Fund remains committed to funding infrastructure projects with competitive return profiles, sustainable environmental practices, and the potential to positively impact the economy.
CBN Plans to Start E-invoice For Import, Export Operations Feb 1
The Central Bank of Nigeria has stated that it will begin the use of electronic invoices for import and export transactions in the country from February 1, 2022.
It noted that the electronic invoice will be submitted through the portal – Trade Monitoring System, a Nigeria single-window portal.
This was made known in a circular, on Friday signed by the CBN Director, Trade and Exchange Department, O. S. Nnaji, sent to all authorised dealers as well as made available on its official website for the general public.
With the title– ‘Guidelines on the introduction of e-valuation, e-invoicing for import and export in Nigeria,’ the circular stated that all import and export operations will now be done with an electronic invoice.
It noted that the e-invoice must be authenticated by an authorised dealer bank as part of the seller’s documentation for payment.
The CBN pointed out that the use of a hard copy final invoice will not be accepted from February 1 as it is now to be replaced with the electronic invoice.
Explaining the reason for the new regulation, it said the use of e-invoices is aimed at getting the exact value of import and export transactions in the country.
“This is to inform dealers and the general public that the introduction of e-valuator and e-invoice replaced the hard copy final invoice as part of the documentation required for all import and export transactions.
“This new regulation is primarily aimed at achieving accurate value from import and export items in and out of Nigeria.
“No importer/exporter may effect payment to the credit of any foreign supplier unless the electronic invoice has been authenticated by authorised dealer banks presented together with the relevant document for payments,” the circular read.
It also stated as part of the electronic invoice principles that products that are more than 2.5 percent around the vertical price would not be accepted nor allowed successful completion of Form M or Form NXP as the case may be.
Every importer or exporter of goods must ensure that the purchase/sale contract with a foreign supplier/buyer is in compliance with the guidelines of the new regulation.
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