COMPANY NEWS IN BRIEF

BHP half-year profit up 77%

Mining giant BHP released record half-year earnings Tuesday, with profits up 77%. The company also outpaced dividend estimates, delivering a record interim dividend to shareholders of US$1.50 for the third year running.

BHP's Western Australia iron ore business drove the miner's US$9.4 billion attributable profit, helped along by strong prices for coking coal and copper.

Ahead of the announcement, there had been some speculation that rising costs and lower demand from China would dent the results of the big iron ore miners, including Fortescue, Rio Tinto and BHP.

The miners have also faced a labour crunch because of Western Australia's strict Covid-19 border restrictions limiting scope for fly-in, fly-out workers.

But BHP had "a strong first half", despite these challenges, chief executive Mike Henry said Tuesday.

"We mitigated the impacts of Covid-19 and significant adverse weather events to turn in a solid operational performance, particularly from our flagship Western Australian Iron Ore business," he added.

The earnings announcement did not include BHP's petroleum assets, as those are soon to be transferred to Woodside, in a deal announced in November 2021.-AFP

Musk donates shares worth US$5.74

Tesla chief executive Elon Musk donated a total of 5 044 000 shares in the world's most valuable automaker to a charity from Nov. 19 to Nov. 29 last year, its filing with the US Securities and Exchange Commission (SEC) showed on Monday.

The donation was worth US$5.74 billion, based on the closing prices of Tesla shares on the five days that he donated the stock. The filing did not disclose the name of the charity.

The donation came as the billionaire sold US$16.4 billion worth of shares after polling Twitter users about offloading 10% of his stake in the electric-car maker in early November.

He said on Twitter that he would pay more than US$11 billion in taxes in 2021 due to his exercise of stock options set to expire this year. He also traded barbs with politicians Bernie Sanders and Elizabeth Warren who called on wealthy people to pay more taxes.

Analysts have said there would be a tax benefit for Musk potentially gifting Tesla stock, since shares donated to charity are not subject to capital gains tax, as they would be if sold. -Reuters

Texas workers to vote on Exxon proposal

Union officials on Monday agreed to schedule a membership vote on a contract offer that could end a nearly 10-month worker lockout at an Exxon Mobil refinery in southeast Texas, a union official said.

The leadership of United Steelworkers (USW) Local 13-243 agreed to put a sweetened Exxon contract proposal received last week to its about 600 members. A vote was scheduled for Monday, Feb. 21.

On Friday, Exxon agreed to contract changes that would make Martin Luther King Jr. Day a paid holiday, updates language regarding a union committee and adds a new job description for operators in the 369 024 barrel-per-day refinery and lubricant facility.

"With the company's latest move, with the MLK holiday added, we felt it was time for the membership to have the say-so on where we go from here," said Bryan Gross, a USW International representative.

"We still don't think the offer is where it should be," said Gross, noting union officials are making no recommendation on the offer. -Reuters

Intel to buy Tower Semiconductor

Intel Corp is close to buying Israeli firm Tower Semiconductor for about US$6 billion, a source familiar with the matter said, as the US company looks to advance its strategy of contract manufacturing chips for other businesses.

A deal could be unveiled as soon as this week, the person said on Monday, declining to be named as the matter was private.

The potential purchase would deepen Intel's presence in a space dominated by Taiwan-based TSMC, the world's largest contract chipmaker. It also comes at time when the global semiconductor shortage has hampered the production of everything from smartphones to cars.

Tower Semiconductor, whose US shares surged 53% in extended trading, specializes in analog chips used in the automotive, mobile, medical and aerospace industries. It had a market capitalization of US$3.6 billion as of Monday's close.

Both Intel and Tower Semiconductor did not immediately respond to requests for comment. The US chipmaker said last month it would invest up to US$100 billion to build potentially the world's largest chip-making complex in Ohio. -Reuters

Malaysia Airlines' parent to lease jets

Air Lease Corp said on Monday it would lease 25 Boeing 737 MAX jets to Malaysia Airlines' parent to be delivered between early 2023 and 2026 through the lessor's orderbook with the manufacturer.

Malaysia Aviation Group (MAG) Chief Executive Izham Ismail said in a statement that the deal was tied to the restructured terms of the airline's existing orderbook with Boeing.

No further details were provided. He is due to speak at a Singapore Airshow forum on Tuesday.

MAG had previously placed an order of its own for 25 737 MAX jets that remains listed on Boeing's website. Boeing did not respond immediately to a request for comment. MAG said last year it had agreed with Boeing to take delivery of the planes from 2024.

It was originally scheduled to take delivery in 2020, but the 737 MAX was grounded worldwide after two crashes, and several airlines and lessors cancelled orders of the jet. MAG also has six Airbus A350-900 planes on long-term leases with Air Lease. -Reuters