Oracle flags potential delays at $18bn AI data-centre project

Market Commentary

Hennes & Mauritz AB (HMb) -2.02%
H&M reported third-quarter sales of SEK57.19 billion, broadly unchanged from SEK57.02 billion a year earlier, with local-currency sales up 1% overall but down 1% in Western Europe. Operating profit rose to SEK6.04 billion from SEK4.91 billion, comfortably above the SEK5.14 billion LSEG consensus, supported by a one-off refund of US tariff payments. CEO Daniel Erver said H&M is accelerating efficiency improvements, shortening product lead times and sourcing more goods closer to core markets. Online sales now exceed 30% of the total, while the group continues to reduce and refurbish stores and invest in European logistics capacity. Higher oil and transport costs remain a challenge, while H&M is also advancing renewable-energy initiatives across its supply chain.

Oracle Corporation (ORCL) -3.47%
Oracle issued a force majeure notice to a Blue Owl unit developing the 1,400-acre Project Jupiter data-centre campus in New Mexico, citing potential delays in securing power. Oracle cannot terminate the lease and remains responsible for debt costs, while Blue Owl has about $3 billion of equity invested in the project. The notice could delay Oracle’s higher rental payments if the facility misses its planned 2028 opening, although Blue Owl said financial commitments remain unchanged. Project Jupiter has secured around $18 billion in loans and forms part of Oracle’s broader AI infrastructure agreement with OpenAI. The development has faced infrastructure and permitting challenges, including delays to a natural-gas pipeline and legal disputes over water and air-quality permits.

Domestic Company News 

Altron Limited (AEL) -1.34%
Altron expects stronger earnings for the six months ended 31 August 2026, with continuing-operations HEPS forecast at 107–112 cents, representing growth of 11%–17% from 96 cents in HY26. Continuing-operations EPS is expected to rise by 11%–17% to 93–98 cents from 84 cents. At group level, HEPS is forecast at 105–110 cents, up 21%–27% from 87 cents, while EPS is expected to increase 41%–47% to 93–97 cents from 66 cents. The prior comparative period included five months of Nexus within discontinued operations before its disposal became effective on 1 August 2025, with no Nexus impact in HY27. Altron expects to release its interim results on or about 2 November 2026.

African and Overseas Enterprises (AOO) 0.00%
African and Overseas Enterprises reported a mixed performance for the year ended 30 June 2026, with revenue increasing 9.3% to R954.5 million from R873.6 million. Gross profit margin declined to 53.7% from 54.9%, while operating profit fell 24.6% to R55.8 million. Earnings per share decreased 72.4% to 29.3 cents from 106.4 cents, and headline earnings per share declined 67.7% to 35.6 cents from 110.0 cents. Despite weaker profitability, net asset value per share increased 10.9% to R21.62 from R19.49. The company, which holds investments across fashion retail, property, media logistics, technology and water infrastructure, paid no ordinary dividend for the year, unchanged from the prior period.

Rex Trueform Group (RTO) 0.00%
Rex Trueform reported revenue growth of 9.3% to R954.5 million for the year ended 30 June 2026, up from R873.6 million, while profitability weakened. The gross profit margin declined to 53.7% from 54.9%, and operating profit fell 23.5% to R57.6 million from R75.3 million. Earnings per share decreased 53.4% to 59.2 cents from 127.0 cents, while headline earnings per share declined 48.7% to 66.1 cents from 129.0 cents. Despite the earnings pressure, net asset value per share increased 14.7% to R23.39 from R20.39. Rex Trueform, which holds investments across fashion retail, property, media logistics, technology and water infrastructure, paid no ordinary dividend for the year, unchanged from 2025. The company remains listed on the JSE’s General Segment within the apparel retailers sector.

Putprop Limited (PPR) 0.18%
Putprop reported rentals and recoveries of R138.2 million for the year ended 30 June 2026, down from R140.4 million, while operating profit declined to R82.3 million from R90.3 million. The operating margin weakened to 60.0% from 64.3%, with the cost-to-income ratio rising to 39.9% from 35.7%. The group recorded a loss per share of 206.89 cents compared with earnings per share of 119.31 cents in 2025, while HEPS increased to 67.10 cents from 60.86 cents. Net asset value fell to 1,500 cents per share from 1,777 cents, and LTV increased to 39.6% from 29.6%. Third-party loan liabilities declined to R399.7 million. The dividend increased to 17.0 cents per share from 15.5 cents.

Global Company News

Hennes & Mauritz AB (HMb) -2.02%
H&M reported third-quarter sales of SEK57.19 billion, broadly unchanged from SEK57.02 billion a year earlier, with local-currency sales up 1% overall but down 1% in Western Europe. Operating profit rose to SEK6.04 billion from SEK4.91 billion, comfortably above the SEK5.14 billion LSEG consensus, supported by a one-off refund of US tariff payments. CEO Daniel Erver said H&M is accelerating efficiency improvements, shortening product lead times and sourcing more goods closer to core markets. Online sales now exceed 30% of the total, while the group continues to reduce and refurbish stores and invest in European logistics capacity. Higher oil and transport costs remain a challenge, while H&M is also advancing renewable-energy initiatives across its supply chain.

Oracle Corporation (ORCL) -3.47%
Oracle issued a force majeure notice to a Blue Owl unit developing the 1,400-acre Project Jupiter data-centre campus in New Mexico, citing potential delays in securing power. Oracle cannot terminate the lease and remains responsible for debt costs, while Blue Owl has about $3 billion of equity invested in the project. The notice could delay Oracle’s higher rental payments if the facility misses its planned 2028 opening, although Blue Owl said financial commitments remain unchanged. Project Jupiter has secured around $18 billion in loans and forms part of Oracle’s broader AI infrastructure agreement with OpenAI. The development has faced infrastructure and permitting challenges, including delays to a natural-gas pipeline and legal disputes over water and air-quality permits.

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