Absa Group announced an 8% increase in headline earnings, reaching 12.8 billion rand in the first half of the year. This growth was primarily attributed to the strong performance of its South African business, which managed to offset a decline in profit from operations in other African regions. The bank's CEO discussed the company's ongoing expansion plans across the continent, including the integration of operations in Uganda, consolidation of businesses in Tanzania, application for a representative office in Angola, and exploration of converting to a merchant banking license in Nigeria. Despite these expansion efforts, the CEO acknowledged that the conflict in the Middle East created headwinds, impacting client activity and the global business's performance in the first quarter of the year, although overall markets still grew by 8%.
Separately, ADNOC Gas reported a drop in income due to disruptions in shipping through the Strait of Hormuz caused by the Middle East conflict, though results still surpassed analyst estimates. The company plans to invest an additional $2 billion in new gas facilities and has committed $28 billion in capital expenditure by 2030, aiming for 60% growth. This investment strategy is driven by strong demand for gas in the UAE and Asian markets. The CEO noted the company's resilience, with a net income of $600 million, and discussed exploring LNG infrastructure options outside the Gulf, including potential locations on the east coast of the UAE, to enhance resilience.
The construction of ADNOC Gas's waste plant, scheduled to deliver its first cargoes in late 2028, has not been significantly affected by supply chain disruptions, remaining on track. However, the ongoing tensions in the Strait of Hormuz, including attacks on vessels, have introduced additional costs for ADNOC Gas, although suppliers have shown flexibility. The company maintains a long-term view on its investment decisions, focusing on fundamental demand for gas in Asian and UAE markets, and expects to post strong returns despite short-term challenges.
