JSE-listed logistics and shipping group Grindrod on Wednesday reported a 119% jump in net profit to R608-million for the six months ended June, from the R277-million recorded in the first half of 2011.
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
Creamer Media Senior Researcher and Deputy Editor Online
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