JSE-listed bulk handling and shipping group Grindrod on Monday reported a 29% increase in headline earnings to R450.5-million for the six months ended June.

Attributable earnings fell by 12% year-on-year to R533.2-million. The earnings decrease was mainly owing to the R414.9-million profit on the sale of 35% of the Maputo Coal terminal in the prior period, the company explained.

Headline earnings per share were 76.2c, up from 58.9c a share in the first half of 2012. Earnings per share came in at 90c, compared with 103.1c a share a year earlier.

Grindrod increased its gross interim ordinary dividend by 14%, to 20c a share.

The group’s freight services earnings from trading activities increased with 75% year-on-year to R299.9-million, while its financial services earnings increased by 120% to R47.8-million.

“Within the freight services division, ports, terminals and rail reported exceptional growth in profits and expanded operational capacity,” Grindrod stated.

The company reported an operating profit before working capital adjustments of R388.5-million, compared with R451.7-million for the previous period, and revenue of R6.98-billion, down from R18.785-billion for the previous corresponding period.

Total capital expenditure (capex) for the six months to June amounted to R1-billion. Subsidiary capex and investment for the six months accounted for R671.4-million, of which 80% was expansionary and the balance maintenance or replacement capex.

“The capex mainly comprised payments on two product tankers, four dry-bulk ships, the Maputo Coal Terminal Phase 3 and 5 expansion project, locomotives, car terminal expansion and fleet investment,” Grindrod said, adding that future capex continued to be committed to the expansion of terminal capacity, rail infrastructure, locomotives and ships. 

The group's working capital position reflected a net outflow for the period of R58.8-million.

“Grindrod has adequate funding for all capital commitments through its cash resources and bank facilities,” the company stated.