Business
Thyssen hit by doubts $1.2 billion fundraising is enough
FRANKFURT – ThyssenKrupp has raised 882 million euros ($1.2 billion) in a sale of new shares, less than some analysts think it will need to pursue a turnaround after it failed to sell a loss-making plant and was forced to take back two others.
The fundraising saw activist shareholder Cevian lift its stake to over 10 percent, sources familiar with the matter said, which could step up the pressure on Germany’s largest steelmaker to consider a bigger shake-up, such as more asset sales.
ThyssenKrupp, which has suffered three straight years of losses and racked up debts, is trying to move away from a bulk steel market hit by weak economies and overcapacity to more profitable products such as elevators and factory components.
But the group has struggled to extricate itself from its Steel Americas business and on Friday said it had only managed to sell its U.S. finishing plant, leaving it with a loss-making steel slab mill in Brazil. It was also forced to take back an Italian steel plant and an alloy unit sold last year.
“We think that the size of the capital increase is too small,” Metzler analyst Lars Hettche said, adding any new problems at the Brazilian steel mill or the re-acquired businesses could trigger the need for another capital hike.
ThyssenKrupp shares were down 2.4 percent at 17.21 euros by 0945 ET on Tuesday, extending Monday’s drop of 8 percent.
Its five-year credit default swaps (CDS) rose 4.2 percent to 243 basis points, according to Markit data, increasing the cost of insuring the company’s debt against default.
ThyssenKrupp, long viewed as a symbol of Germany’s industrial prowess, placed 51.5 million new shares with institutional investors at 17.15 euros apiece. That was at the lower end of the 17.05 to 17.635 euros range they were offered at and a discount of 2.8 percent to Monday’s closing price.
The proceeds will be used to cut the group’s net debt, which stood at about 5 billion euros at the end of September, and reduce its gearing – the ratio of its net debt to equity. In September, the group had to secure a waiver from its banks after its gearing breached the 150 percent level that could have seen creditors prematurely cancel a 2.5 billion euro credit line.
Analysts said the share sale and U.S. deal should cut ThyssenKrupp’s gearing to just above 100 percent from 200.6 percent at the end of September. That is still far above 34 percent at world No. 1 steelmaker ArcelorMittal (ISPA.AS) and an industry average of 60-70 percent.
“The capital increase eases the pressure a bit,” said Thomas Hechtfischer of shareholder rights group DSW. “But it would be difficult to digest any more bad news.”
SHIFT IN INFLUENCE
The share sale also resulted in a shift in ThyssenKrupp’s shareholder base, giving more power to Cevian, which has so far backed management’s plan to sell non-core assets and cut costs.
Meanwhile, the Krupp Foundation, ThyssenKrupp’s top shareholder and widely seen as a shield against takeovers or a break up of the business, did not buy new stock, allowing its stake to be cut to 23 percent from 25.3 percent.
That means that the Krupp Foundation may have to hand over one seat on ThyssenKrupp’s supervisory board to Cevian, which prior to the fundraising had owned a stake of 6.1 percent.
Cevian declined to comment.
“I would welcome it if the Foundation’s stake shrank,” Union Investment fund manager Joerg Schneider, who holds shares in ThyssenKrupp, told Reuters ahead of the capital increase.
Some investors have criticized the Foundation for blocking more radical change at the company.
With ThyssenKrupp’s finances still under pressure – credit rating agency Moody’s reaffirmed its negative outlook on the company on Tuesday – some analysts said the group might have to consider more asset sales.
Baader Bank analyst Christian Obst said it could sell its components technology business, which makes car parts such as crankshafts and engine components, or could merge its steel trading business with its Italian plant to sell as a package.
But finance chief Guido Kerkhoff on Saturday brushed off speculation that ThyssenKrupp could sell any of its capital goods businesses, and analysts said the Krupp Foundation’s influence was strong enough to make a break-up very difficult.
DRAIN ON FINANCES
On Friday, ThyssenKrupp agreed to sell its U.S. plant in Alabama to ArcelorMittal and Nippon Steel & Sumitomo Metal Corp (5401.T) for $1.55 billion, the low end of expectations and leaving its Brazilian problem unresolved.
A supply agreement for the Brazilian mill, part of the U.S. deal, guarantees at least 40 percent utilization for the next few years, but analysts said there was so much excess capacity in the market that business would remain tough.
ThyssenKrupp’s Steel Americas business cost it almost 13 billion euros in investment and losses over six years, after plans to produce cheap slabs in Brazil and ship them to the United States to make products for cars fell apart when Brazil’s currency rose and demand for vehicles slowed.
The German firm was also forced to take back a steel plant at Terni in Italy and an alloy unit sold to Outokumpu, as the Finnish steelmaker – trying to overhaul its own finances – returned them in exchange for cancelling a 1.25 billion euro loan ThyssenKrupp gave it to finance a wider deal.
The businesses will require investment, further draining ThyssenKrupp’s finances. Analysts say the Terni plant is loss-making and needs to be restructured, while the alloy unit, though profitable, is declining.
– REUTERS
AVA Capital Plc has been admitted to the Main Board of Nigerian Exchange Limited (NGX) following the listing by introduction of its 5 billion ordinary shares at ₦7.50 per share, with a market capitalisation of ₦37.5 billion.
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Commenting on the listing, the Chief Executive Officer of Nigerian Exchange Limited, Jude Chiemeka, said the admission reflects the continued confidence of businesses in Nigeria’s capital market as a platform for sustainable growth. “Today’s listing reflects the confidence that forward-looking companies continue to place in the Nigerian capital market. By joining the Main Board of Nigerian Exchange, AVA Capital Plc is embracing the transparency, governance standards and market discipline that define public companies, while positioning itself to access a broader investor base and unlock long-term value. We are delighted to welcome AVA Capital Plc to the NGX family and look forward to supporting its continued growth.”
The admission of AVA Capital Plc expands the range of investment opportunities available to investors while reinforcing NGX’s commitment to connecting businesses with long-term capital and supporting their growth through enhanced visibility, strong governance and deeper investor engagement.
June 2026 results of the Nigerian National Petroleum Company Limited (NNPC Ltd) shows a Profit After Tax (PAT) of N535 billion, despite recording a marginal decline in crude oil and condensate production during the month.
The figure represents a 15.8 percent increase over the preceding month, according to the latest Monthly Financial and Operations Report of the state oil major, which indicates that the PAT rose by N73bn from the N462bn recorded in May, while revenue increased to N4.389tn.
According to the report, the company remitted cumulative statutory payments of N6.286tn to the Federation in H1, 2026.
It read, “NNPC Limited recorded N535bn profit after tax for the month of June, representing a 15.8 per cent increase from the N462bn recorded in May. Total revenue for the month stood at N4.389tn, while cumulative statutory payments to the Federation for the period January to June 2026 increased to N6.286tn, underscoring NNPC Limited’s sustained contribution to national revenue generation.”
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Average crude oil and condensate production declined marginally to 1.72 million barrels per day in June from 1.73 million barrels per day in May, representing a 0.58 percent decrease. However, output was 1.18 percent higher than the 1.70 million barrels per day recorded in June 2025.
According to the report, production was affected by operational disruptions, facility integrity issues and subsurface challenges across several assets.
It stated, “June production performance was impacted by operational disruptions, facility integrity issues, and subsurface challenges across several assets. However, performance was partially mitigated by production ramp-up following the completion of the Assa-Rumuekpe and 28-inch TNP Turnaround Maintenance.”
Despite the slight production decline, crude oil and condensate sales surged to 28.23 million barrels in June from 18.95 million barrels in May, representing a 48.97 percent month-on-month increase. The June sales volume was also 6.77 percent higher than the 26.44 million barrels sold in June 2025.
Gas production also improved, rising to 7,841 million standard cubic feet per day from 7,774 million standard cubic feet per day in May, while gas sales recovered to 4,970 million standard cubic feet per day from 4,921 million standard cubic feet per day.
The report highlighted progress on two major gas infrastructure projects. The Obiafu-Obrikom-Oben Gas Pipeline reached 98 percent completion, with final tie-in works ongoing.
It stated, “The Obiafu-Obrikom-Oben (OB3) Gas Pipeline progressed to 98% completion, with final tie-in works ongoing towards achieving First Gas in August 2026.”
Construction on the Ajaokuta-Kaduna-Kano Gas Pipeline also advanced to 94 percent completion. According to the company, “Construction and installation activities on the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline advanced to 94 per cent completion, supporting the target of early gas delivery to Abuja in 2026.”
The NNPC Ltd declared that it would continue implementing measures to sustain production growth despite operational challenges.
It stated, “Focus remains on delivering incremental production across the asset portfolio by improving facility reliability and availability, minimizing Unscheduled Downtime, optimising crude export operations, and accelerating the maturation of production opportunities to sustain Upstream production growth.”
The report also showed that upstream pipeline availability remained at 100 percent during the month, while petrol availability across the NNPC Retail Limited stations stood at 53 percent. It added that all production, sales and financial figures remained provisional and were subject to reconciliation with relevant stakeholders.
The landed cost of imported Premium Motor Spirit (petrol) has climbed above the gantry price offered by the Dangote Petroleum Refinery, reinforcing calls by petroleum marketers for Nigeria to halt fuel importation and prioritise local refining.
The latest Energy Bulletin released by the Major Energies Marketers Association of Nigeria showed that the spot landed cost of imported petrol stood at N1,223.32 per litre as of July 29.
The price is higher than the Dangote refinery’s gantry price of N1,215 per litre, indicating that imported petrol currently costs marketers more than supplies sourced from the 650,000-barrels-per-day Lekki-based refinery.
The MEMAN bulletin also showed that Brent crude averaged $90 per barrel during the review period.
The development comes days after the Independent Petroleum Marketers Association of Nigeria renewed its call for an end to petrol importation, arguing that local refining capacity is sufficient to meet the country’s fuel demand.
IPMAN National Publicity Secretary, Chinedu Ukadike, recently told The PUNCH that there was no justification for continued petrol imports when local refineries, particularly the Dangote refinery, were producing enough to supply the domestic market.
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He argued that importing petrol when locally refined products were available only exerted additional pressure on foreign exchange and undermined investments in domestic refining.
The latest pricing data appears to support the marketers’ position, with the landed cost of imported petrol now exceeding the Dangote refinery’s gantry price.
According to the MEMAN bulletin, Dangote’s coastal price for PMS stood at N1,195 per litre, while its gantry price was N1,215 per litre, inclusive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority charges.
The report also showed that the naira averaged N1,367.03/$ during the review period, while international crude oil prices remained elevated, contributing to higher import costs.
The rise in global crude prices also pushed up the cost of refined petroleum products internationally. The price of diesel traded on the Intercontinental Exchange in Europe averaged $1,246.54 per metric tonne during the review period.
The bulletin further revealed that the spot landed cost of diesel rose to N1,739.96 per litre, compared with a 30-day average of N1,427.00 per litre, while aviation fuel climbed to N1,616.43 per litre against a 30-day average of N1,421.10 per litre.
The pricing trend suggests that locally refined petrol currently offers marketers a cheaper alternative than imports.
Earlier, the Independent Petroleum Marketers Association of Nigeria urged the Federal Government to halt the importation of petrol, arguing that imported petrol has become more expensive than locally refined products and is frustrating efforts to stabilise prices in the downstream sector.
The association said the continued issuance of fuel import licences was worsening price volatility, putting additional pressure on the naira and undermining the competitiveness of domestic refineries, particularly the Dangote Petroleum Refinery.
Speaking with The PUNCH, the National Publicity Secretary of IPMAN, Chinedu Ukadike, said the recent import licences issued by the NMDPRA had failed to achieve their intended objective of moderating domestic fuel prices.
According to him, petrol imported under the new licences is being sold at rates significantly higher than the price of products supplied by the Dangote refinery.
Meanwhile, data from Petroleumprice.ng also showed that some depot owners continued to adjust their ex-depot petrol prices on Thursday amid changing market conditions. AIPEC sold at N1,216 per litre.
Ardova reduced its ex-depot price by N1 to N1,217 per litre, while Ascon and T-Time each cut their prices by N2 to N1,216 per litre. Emadeb, however, increased its price by N1 to N1,218 per litre, while NIPCO retained its price at N1,217 per litre.
Outside Lagos, Aradel raised its ex-depot price by N5 to N1,240 per litre in Port Harcourt. Matrix and Sigmund reduced their prices by N10 each to N1,225 and N1,224 per litre, respectively, while T.S.L. cut its price by N15 to N1,225 per litre.
In Calabar, Hong Petroleum, Mainland and Sobaz each reduced their depot prices by N5 to N1,220 per litre. In Warri, A.Y.M. Shafa increased its price by N3 to N1,233 per litre, while Optima raised its price by N2 to N1,232 per litre. Matrix reduced its price by N3 to N1,230 per litre, while Rainoil cut its price by N2 to N1,240 per litre.
The PUNCH reports that the pump prices of petrol currently hover around N1,250 to N1,300 per litre in Lagos and Ogun states, while they are higher in the North and other distant locations.
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