Nov 22, 2011
Omnia posts higher earnings, R1.4bn nitric acid plant on trackBack
Agriculture|Construction|Explosives|Mining|Omnia|Building|Chemicals Division|Chemicals Producer|Explosives|Manufacturing|Manufacturing Industry|Product|Noel Fitz-Gibbon|Rod Humphris|Operations
© Reuse this
The company said its chemicals division was negatively impacted on by the continued reduced output of the domestic manufacturing industry.
Omnia posted headline earnings of 348.8c a share for the interim period, which is a 2% increase on the 341.4c a share reported in the same period last year. Earnings a share rose despite a 37% increase in the number of shares in issue, after a rights issue last year to raise capital for the construction of a new nitric acid complex.
Profit for the period was up by 38% to R230-million.
The company said revenue rose by 16% to R4.95-billion on the back of increased volumes and international price increases.
Omnia also resumed dividend payments and declared an interim dividend of 100c a share. The company had put on hold payment of dividends after raising equity to fund a new nitric acid plant in Sasolburg, in the Free State.
The debt to equity ratio also remained stable at 35%, despite the company spending R379-million in the last 12 months on its new nitric acid plant.
The company is building a new nitric acid complex at a cost R1.4-billion. At full production of 1 000 t/d, the plant is expected to produce 40% more nitric acid than the company’s current fully used plant.
The nitric acid is critical for the company to expand its fertiliser and mining explosives business activities.
“We are pleased with the exceptional health of our balance sheet,” Omnia group finance director Noel Fitz-Gibbon said at the group’s interim results presentation.
MD Rod Humphris said the second half of the year looked promising and the weaker rand would positively impact on all its operations.
“The weakening in the rand has come too late to have a significant impact on the agriculture division as most customer orders had been placed before September. We expect a 10% rise in agricultural product sales this summer, as crop prices were showing a rising trend," he said.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Other Chemicals News
Recent Research Reports
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.
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.
This Week's Magazine
The international Square Kilometre Array (SKA) radio telescope – which is to be jointly hosted by South Africa and Australia with, later, outstations in other countries – may not yet exist, but international scientific working groups are already deciding what...
A free Web-based solar power plant capacity-planning tool offers project planners and developers, as well as governments, a means to assess the solar energy potential of thin-film solar PV power over an area of land. The tool was developed by thin-film solar...
As yet, no specific methodology, timeline or costs have been finalised to remedy the water ingress, excessive to contractual specifications, into the Gautrain tunnel between emergency shaft two (E2) and Park Station, says Bombela Concession Company technical and...
The “seriously disruptive” electricity outages in South Africa have cost packaging group Astrapak more than R2-million in “irrecoverable downtime costs”, the company said on Monday, adding that the power cuts were negating some of the benefit of energy saving...
Bakkies and more affordable cars dominated South Africa’s new vehicle market in 2014. Unaudited data from the Department of Trade and Industry (DTI) shows that South Africa’s most popular vehicle in 2014 was the Toyota Hilux, selling 37 562 units.