Aug 21, 2012
Contract mining and plant rental division pushes up Eqstra profitBack
Construction|Industrial|Industrial Equipment|Mining|PROJECT|Projects|Rental|Botswana|Mozambique|Namibia|Contract Mining|Equipment|Industrial Equipment|Logistics|Operations
© Reuse this
Profit increased to R488-million during the year ended June, compared with the R360-million recorded in the prior year.
The group recorded a revenue increase of 18%, from R6.9-billion in 2011, to R8.1-billion in the 2012 financial year.
Rentals in its contract mining and plant rental division increased as the Benga project, in Mozambique, ramped up production volumes and activity picked up in Namibia and Botswana.
The contract mining and plant rental division attracted a profit before tax of R109-million, up from R51-million in 2011, while revenues jumped 14.9%, from R3.2-billion in 2011, to R3.7-billion in the 2012 financial year.
The company’s construction and mining equipment division, however, weighed on the firm’s results, reporting a profit before tax of R1-million, which is a 95.8% fall from the R24-million achieved in 2011. Revenue fell 10.8%, reaching R452-million during the period under review, compared with R507-million in the prior year, owing to slowing equipment demand as commodity prices and projects contracted.
However, the company remained optimistic of the division’s future performance as aftermarket revenues and market share gains in the dump truck market were expected to increase.
Eqstra’s industrial equipment division earned R1.9-billion in revenue in 2012, compared with R1.6-billion the year before, with a 28% year-on-year profit-before-tax increase to R130-million.
Further, within the group’s fleet management and logistics division, revenue reached R2.1-billion for the year, up from R1.9-billion a year ago, and profit before tax of R219-million was recorded, compared with R186-million in 2011.
Basic and headline earnings a share, from continuing operations, increased 34.8% and 6.2% to 89.4c and 77.2c, respectively. Eqstra’s discontinued operations recorded basic earnings a share of 26.5c, bringing total basic earnings a share to 115.9c for the period under review.
Eqstra’s sale of its Bucyrus business unit in June resulted in a net cash inflow to the group of R424-million.
The group also reported giving notice to terminate its distribution rights for New Holland Construction from August 31. The New Holland Construction business unit was classified as a discontinued operation earlier this year.
Eqstra declared a dividend of 28c a share for the year ended June.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
This Week's Magazine
Mercedes-Benz will launch ten plug-in hybrid models by 2017, says the German automaker’s parent company, Daimler. Following the launch of the S 500 plug-in hybrid, March saw the introduction of the C 350 e, the second model to feature the drive-train concept. Under...
Energy Minister Tina Joemat-Pettersson's recent unveiling of something of a road map for an upscaled and accelerated deployment of independent power producer (IPP) capacity has been widely welcomed. Besides plans to accelerate and expand the hitherto successful...
South African Airways (SAA) acting CEO Nico Bezuidenhout has firmly denied reports that a stake in the airline was going to be sold to Air China. “Categorically, SAA is not in any talks with any airline to sell itself at the moment,” he stated at a media briefing at...
Russian State-owned nuclear group Rosatom has confirmed that it is in talks with Nigeria about the construction of nuclear power plants (NPPs) in that country, but has denied that any agreement has been signed. This follows a recent report in the Nigerian media that...
Gas products and services company Afrox has launched a pilot programme to deliver its range of Handigas liquefied petroleum gas (LPG) to domestic consumers to fill a gap in the market, thereby expanding its direct contact with end-users.