http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.87Change: 0.01
R/$ = 13.30Change: 0.00
Au 1133.54 $/ozChange: -1.31
Pt 1018.00 $/ozChange: -2.00
 
 
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  
 
 
Jul 13, 2012

Mining underpins Omnia’s earnings growth as chemicals face headwinds

Back
Agriculture|Africa|Mining|Omnia Holdings|Africa|Chemical Products|Chemicals|Chemicals Division|Manufacturing|Manufacturing Sector|Products|Service|Services
Agriculture|Africa|Mining||Africa|Manufacturing|Products|Service|Services
agriculture|africa-company|mining|omnia-holdings|africa|chemical-products|chemicals|chemicals-division|manufacturing|manufacturing-sector|products|service|services
© Reuse this



Fifty-eight-year-old South African chemicals, agriculture and mining services group Omnia Holdings has posted a 39% increase in profit for the 2012 financial year to a record high of R629-million.

Bolstered by a strong performance in its mining business, the group’s overall operating margin increased from 7.3% to 8.1%, with group revenue rising by 16.8% from R9.4-billion in 2011 to R10.9-billion in 2012 on the back of volume and sales price increases in the group’s mining and agriculture divisions.

Gross profit for the year increased 21.8% to R2.4-billion from R1.9-billion in 2011 and improved to 21.9% of revenue as a result of improved gross margins in the mining division, which had been partially offset by reduced margins in the agriculture division. The gross margin in the chemicals division remained on par with the previous year.

While the company reports substantial growth in its mining services division and positive results from its agricultural service business, its chemicals division experienced a challenging year on the back of a mixed global economic performance and minimal price increases for its chemical products.

In addition, the group says despite observing low domestic interest rates, economic activity levels in the South African manufacturing sector remained muted. This is partially a result of the rand strength against the dollar, which hindered the chemicals division, as its primary customer base is drawn from the South African manufacturing sector.

Protea Chemicals, the group’s chemicals divi- sion, which is active throughout Southern and Eastern Africa, reports reduced revenue of 4.9% to R3.4-billion owing to a volume decline of 5.5%, partially offset by a slight improvement in selling prices.

Volumes in the company’s polymer distribution business declined dramatically by 49%, following the implementation of a strategy to focus on increased quality and risk aversion, while volumes in the chemicals divi- sion increased by 2.6%.

Gross profit for the chemicals division decreased in line with the revenue drop, while lower overheads enabled cost-reduction measures, thus enabling operating profit to increase by 34.4% to R86-million, from R64-million in 2011.

The chemicals division’s operating margin at 2.5% is an improvement on the previous year’s 1.8% but is well below the target of between 4.5% and 5.5%.

Omnia’s agricultural services division, comprising Omnia Fertilizer and Omnia Specialities, increased its revenue by 21.6% to R4.5-billion on the back of high fertiliser commodity prices and higher volumes.

Operating profit only grew by 3.5% to R323-million owing to market compression caused by the increased use of costlier nitrates, pricing pressures, as a result of increased domestic competition and significantly lower margins from its Zambian operation as a result of increased competitor activity.

Edited by: Martin Zhuwakinyu
Creamer Media Senior Deputy Editor
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other News This Week News
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
More
 
 
Latest News
A preliminary investigation by the Railway Safety Regulator (RSR) into the derailment of a Shosholoza Meyl train in Kimberley earlier this month, found that Transnet Freight Rail (TFR) had failed to communicate with the Passenger Rail Agency of South Africa (PRASA)...
Three of home improvement company Illiad’s major shareholders – Sanlam, Visio and Coronation, which held 69.25% – have agreed to vote in favour of a takeover by Steinhoff, with the company’s remaining shareholders to vote on the deal on September 29. Seventy-five per...
Government should face the fact that South Africa’s full-blown jobs crisis is a matter of urgent public importance, the Democratic Alliance (DA) said on Friday. MP James Vos, the DA shadow minister of tourism, was responding to a letter by Baleka Mbete, the Speaker...
More
 
 
Recent Research Reports
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
 
 
 
 
 
 
 
 
 
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