Aug 22, 2012
Grindrod doubles net profit, commits R1.3bn capexBack
CoAL|Grindrod|Marine|Vitol Group|Mozambique|Maputo Coal Terminal|Logistics|Service|Services|Alan Olivier
© Reuse this
Revenue for the period reached R19.65-billion – a 11% rise from R17.77-billion in the corresponding period last year, as the divisions marine fuels trading and terminals increased volumes.
The freight services division achieved an income of R508-million, including profit from the sale of 35% of the company’s stake in the Maputo Coal Terminal, during the first half of 2012, up from R154-million in the prior year. Trading income for the division reached R171-million. The trading and financial services divisions each earned R96-million and R22-million, respectively, while the shipping division recorded a loss of R121-million.
Freight service’s drybulk terminals achieved a volume increase of 30% to 5.5-million tons, and CEO Alan Olivier expected an increase in volumes for the next six months.
Grindrod, which poured R787-million into capital expenditure over the last six months, 70% of which was used for expansionary purposes, would invest another R1.13-billion in the next six months. The bulk of this was allocated to its freight services division and included funding to complete Phase 3.5 of the Maputo Coal Terminal, in Mozambique.
Phase 3.5, which would be complete in 2013, was expected to add 1.3-million tons of capacity to the terminal, increasing the terminal’s capacity to 7.3-million tons a year.
The Phase 4 feasibility stage, which outlined the expansion of capacity at the terminal by 20-million tons, would be completed in the last quarter of 2012.
The coal terminal, in which Grindrod sold a R415-million, 35% stake to the Vitol Group earlier this year, recorded a 32% increase in volumes, reaching 2.1-million tons in the six months to June.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
In the next 20 years, it was expected that, in Africa, more people would live in cities and towns than in rural areas, United Nations Habitat executive director Dr Aisa Kirabo Kacyira said at the Human Settlements Indaba that took place earlier this month in...
Tough-talking Human Settlements Minister Lindiwe Sisulu has committed government to building 1.5-million low-cost houses over the next five years, telling the Human Settlements Indaba in Johannesburg on Wednesday that the State would achieve this target through the...
Over the past 20 years there has been persistent concern about deindustrialisation in South Africa, as well as the fact that locally produced manufactured products have been increasingly displaced by imports.
Financial agreement for Ghanian independent power producer (IPP) Cenpower Generation Company’s $900-million, 350 MW combined-cycle gas-turbine power plant was finalised earlier this month, paving the way for the project’s construction to begin before 2015 in Tema,...
The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted last week that recommendations were being considered to “detect and...