http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.49Change: -0.02
R/$ = 11.88Change: 0.20
Au 1214.08 $/ozChange: 19.92
Pt 1149.50 $/ozChange: 15.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 27, 2008

Electrical wholesaler ARB targets State-owned enterprises for growth

Back
 
 
 
 
 
 
Africa|CoAL|Eskom|Housing|Mining|Africa|Product|Products|Solutions|Infrastructure|Power
Africa|CoAL|Eskom|Housing|Mining|Africa|Products|Solutions|Infrastructure|Power
africa-company|coal|eskom|housing|mining|africa|product|products|solutions|infrastructure|power
© Reuse this



Increased government spend and Eskom infrastructure expenditure was expected to continue driving sales growth for JSE-listed electrical wholesaler ARB in the future.

The wholesaler, with CEO Craig Robertson at the helm, reported that despite the power crisis in South Africa, the electrification of rural areas would continue unabated, specifically the electrification of schools, clinics and low-cost housing.

Speaking at the group’s results presentation in Johannesburg, Robertson said that parastatals, some of which were already customers of ARB, would be a target focus for the future, as spending from these would become vast.

“We are positioned to take advantage of that spend,” he commented.

The company expected to benefit particularly from increased spend by Eskom as part of their rural reticulation programme of getting electricity to all by 2014.

Robertson explained that the electricity connections in KwaZulu-Natal and the Eastern Cape would double over the next 18 months to three years.

The electrification programme was also expected to start picking up pace in Limpopo province.

Further, government was investing R568-billion on infrastructure over a three-year period, which ARB said would benefit the company, as electricity was required for infrastructure developments.

Meanwhile, after its year-end in June, ARB had established ARB Global, which focused on exporting the group’s offerings into Africa.

“The whole of Africa has to be electrified, and those products will come from the strongest base in Africa, which is South Africa,” said Robertson.

He added that only a small capital investment was required to take advantage of the growth prospects of exports to Africa. He expected ARB Global to see a fivefold growth in revenue in the near term.

ARB was also expanding into Africa at a time when infrastructure developments were increasing on the continent.

In May, the wholesaler opened a branch in Nelspruit, in Mpumalanga province, which the company believed would allow it to enter the Mozambique market, which was part of the Maputo Development Corridor.

In addition, Nelspruit was also situated in the coal-mining Mpumalanga province, which would benefit the wholesaler’s new ARB Mining division.

This division was established after the company’s year-end and was a new focus for ARB.

“There is a global trend that mining houses are now adopting. They are using fewer and fewer suppliers,” commented Robertson.

He added that ARB could offer turnkey solutions to the mining industry with its product offering and the stock levels it kept. The division would especially take advantage of the opportunities in Southern Africa.

Meanwhile, the wholesaler would continue to look at acquisition opportunities, but would consider these carefully.

FINANCIAL RESULTS

ARB, which listed on the JSE in November last year, on Wednesday reported a 23,7% increase in headline earnings to R104,1-million for the year ended June 30, 2008, compared with R84,2-million the year before.

Headline earnings a share had increased by 11,8% to 47,1c a share for the year ended June 2008, compared with 42,1c a share in 2007.

Net profit for the year rose by 22,6% to R135,1-million, compared with R110,2-million the year before, while revenue jumped by 28,3% to R1,34-billion for 2008.


Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
Power utility Eskom said it would extend power cuts to 2 000 MW of electricity from 12:00 to 22:00 on Friday due to a shortage of generating capacity. The cash-strapped State utility, which has been forced to reduce electricity supply in Africa's most advanced...
Article contains comments
The changing role of the African electricity consumer is held up in a new Deloitte report as a potentially “disruptive” trend for the sub-Saharan African power industry. Africa infrastructure and power leader Shamal Sivasanker argues that consistent growth in region...
More
 
 
Latest News
South Africa’s crude steel production dropped by a sizeable 17.2% year-on-year to an estimated 530 000 t in April, amplifying a global trend that saw world steel production decline by a comparatively marginal 1.7% to 135-million tons in the fourth month of the year....
The Treasure the Karoo Action Group (TKAG) on Friday called on government to delay publishing final regulations and issuing rights for shale gas exploration in the Karoo, until a 24-month strategic environmental assessment (SEA) has been concluded. TKAG CEO Jonathan...
More
 
 
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
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
FREDRIK JEJDLING Sustainability becomes an important part of a business’ decision-making process
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96