Company News

PayPal Forecast Full-Year Profit Amidst High Inflation

Published

2 years ago

February 11, 2023

American e-commerce giant company Paypal has forecasted a full-year profit above wall street estimate, amidst high inflation.

According to Paypal’s long-term forecast, the Stock price will hit $97.6 by the end of 2023. The e-commerce giant started the year at a stock price of $71.22 which is currently trading at $78.42, marking a 10% increase from the beginning of the year.

Despite macroeconomic pressure that is hurting the purchasing power of American consumers, reports reveal that PayPal’s customers continue to spend large, undeterred by the high inflation rate.

PayPal’s acting finance Chief Gabrielle Rabinovitch however acknowledged that the rate of e-commerce growth has decreased, because inflationary spending has affected consumers’ spending, however noting that spending partners are still evolving.

Despite the high inflation taking a toll on consumers purchasing power, Investors King understands that PayPal forecasted a full-year profit due to the fact its Buy Now, Pay Later (BNPL) payment offering has been a favorite go-to solution for customers in this uncertain economy.

During an earnings call with analysts last year, Pay Pal CEO Dan Schulman noted that 25 million consumers are now using its BNPL option, equating to 150 million different loans at over 2.2 million unique merchants.

Schulman further stated that PayPal is seeing a halo spend of greater than 20% and 90%. Addressing the question of rising BNPL delinquencies amid surging inflation, he stated that the loss rates remained low and stable.

In his words

“The size of our active account base and the years of transaction data we have on our customers provide us with an additional competitive advantage from an underwriting perspective. As of the end of Q3 2022, our loss rates remain among the lowest in the industry with no observable deterioration to date.”

Meanwhile, PayPal has disclosed that it will not provide a forecast for the full-year 2023 revenue growth, which analyst D.A Davidson predicts could be a result of the macro uncertainty.

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Dangote Refinery Denies NNPC Petrol Lifting Claims Amid Ongoing Contract Talks

Published

2 days ago

September 5, 2024

Samed Olukoya

Dangote Refinery has refuted claims that the Nigerian National Petroleum Corporation (NNPC) had begun lifting petrol from the refinery and set the pump price at N897 per litre.

In the BusinessDay publication, the newspaper reported that NNPC commenced petrol lifting on Wednesday and set the pump price at N897/litre.

Anthony Chiejina, the Group Chief Branding and Communications Officer of Dangote Refinery clarified that NNPC has not yet begun lifting Premium Motor Spirit (PMS) from the refinery.

According to Chiejina, discussions between Dangote Refinery and NNPC on the contract for petrol lifting are still ongoing and have yet to be finalized.

Chiejina said since no petrol has been lifted, the claim of setting a price for the product is unfounded.

He further noted that the pricing of PMS falls under the jurisdiction of the government and is strictly regulated, meaning Dangote Refinery has no authority to set prices independently.

The company assured Nigerians that once operations begin, the refinery will deliver high-quality petroleum products across the country.

Chiejina urged the public to disregard the misleading headline and assured that accurate information will be provided as the refinery prepares to commence full operations.

The statement concluded by reiterating Dangote Refinery’s focus on contributing to Nigeria’s energy sector and meeting the nation’s demand for top-tier petroleum products.

Company News

Volvo to Launch Electric Truck With 600 km Range

Published

5 days ago

September 3, 2024

Samed Olukoya

Up to 600 km on one single charge. That’s how far Volvo’s next-generation heavy-duty electric truck will be able to drive. The longer range represents a breakthrough for long-distance transport with zero tailpipe emissions.

The electrification of heavy trucks is continuing across the world and longer distances are now becoming a possibility.

Next year Volvo will launch a new long-range version of its FH Electric that will be able to reach up to 600 km on one charge.

This will allow transport companies to operate electric trucks on interregional and long-distance routes and to drive a full working day without having to recharge. The new Volvo FH Electric will be released for sale during the second half of 2025.

“Our new electric flagship will be a great complement to our wide range of electric trucks and enable zero-exhaust emission transport also for the longer distances. It will be a great solution for transport companies with a high annual mileage on their trucks and with a strong commitment to reduce CO2,” says Roger Alm, President Volvo Trucks.

Five years of electric leadership

The enabler for the 600 km range is Volvo’s new driveline technology, the so-called e-axle, which creates space for significantly more battery capacity onboard. More efficient batteries, a further improved battery management system and overall efficiency of the powertrain also contribute to the extended range.

Volvo Trucks is a global leader in medium- and heavy-duty electric trucks with eight battery-electric models in their portfolio.

The wide product range makes it possible to electrify city and regional distribution, construction, waste management and, soon, long distance transport. Volvo has so far delivered more than 3,800 electric trucks to customers in 46 countries around the world.

“The transport sector represents seven percent of global carbon emissions. Battery-electric trucks are important tools to reduce the climate footprint. Besides the important environmental gains that electric trucks bring, they offer truck drivers a much better working environment, with much lower levels of noise and vibrations,” says Roger Alm.

Volvo Trucks drives the transition towards fossil-free transport to reach its net-zero emissions target by 2040 using a three-path technology strategy.

The three-path technology approach is built on battery electric, fuel cell electric and combustion engines that run on renewable fuels like green hydrogen, biogas or HVO (Hydrogenated Vegetable Oil).

Company News

Dangote Refinery Starts Gasoline Output Amid NNPC’s Struggles with $6 Billion Debt

Published

5 days ago

September 2, 2024

Samed Olukoya

Nigeria’s Dangote Refinery has begun processing gasoline after delays caused by recent crude shortages, an executive said on Monday.

The $20 billion refinery on the outskirts of Lagos, built by Nigerian billionaire Aliko Dangote, began operations in January with output of products including naphtha and jet fuel.

With a capacity of 650,000 barrels per day, Africa’s largest refinery promises to ease oil producer Nigeria’s costly reliance on imported oil products.

“We are testing the product (gasoline) and subsequently it will start flowing into the product tanks,” said Devakumar Edwin, a vice president at Dangote Industries Limited.

He did not say exactly when the gasoline would hit the local market.

Edwin said state-oil firm NNPC Ltd, Nigeria’s sole importer of gasoline, would buy its gasoline exclusively.

“If no one is buying it, we will export it as we have been exporting our aviation jet fuel and diesel,” Edwin said.

The delivery of gasoline into the Nigerian market will ease NNPC’s struggle to supply the local market.

The company is reeling with debts of $6 billion to oil traders for supply since January.

This has affected its ability to supply the local market where fuel queues have persisted since July.

Prices have jumped by 45% from the official price of 617 naira ($0.3942) announced after subsidies were removed last year.

“The news that Dangote is processing gasoline couldn’t come at a more crucial time given NNPC’s statement about its difficulties securing imported supply due to financial strain,” said Clementine Wallop, director, sub-Saharan Africa at political risk consultancy Horizon Engage.

She said this “prompts the question of how NNPC will manage purchasing from Dangote, and impresses the need for greater transparency in its finances”.

Nigeria is Africa’s top oil producer yet it imports almost all its fuel due to years of neglect of its national refineries.