Nov 22, 2011
Omnia posts higher earnings, R1.4bn nitric acid plant on trackBack
Agriculture|Construction|Explosives|Omnia|Building|Chemicals Division|Chemicals Producer|Explosives|Manufacturing|Manufacturing Industry|Mining|Product|Noel Fitz-Gibbon|Rod Humphris
© 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 Video News
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
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...