Jun 26, 2012
Omnia sees buoyant growth from mining, profit hits recordBack
Agriculture|Johannesburg|Africa|CoAL|Copper|Explosives|Mining|Omnia|Africa|Democratic Republic Of Congo|Namibia|South Africa|Chemicals Division|Explosives|Fertiliser|Manufacturing|Manufacturing Sector|Product|Products|Rod Humphris
© Reuse this
MD Rod Humphris said the group saw significant potential for its mining division, especially in the rest of Africa, with volume growth expected across the division’s entire product range.
“At the moment, about 25% of our revenue is generated in the region, and with a promising coal sector going forward, as well as the development of uranium mines in Namibia, and the growing copper interest in the Democratic Republic of Congo. We are happy to grow our business in the region.
“Volume growth in mining is still good, with a number of new mines coming into play in the next few years. Although the coal price has gone down, we are not seeing it as a major concern,” he told Mining Weekly Online, at the group’s results presentation in Johannesburg.
Omnia increased its profit for the year ended March by 39% to a record R629-million. Headline earnings a share rose 25% to 959c, while revenue was up 16.8% to R10.9-billion.
Humprhis said that the completion of the company’s new R1.4-billion nitric acid complex provided a solid base for Omnia’s next growth stage.
“There are four key drivers for the business going forward, including the good demand for mining and agricultural commodities and a growing demand for our products from African economies,” he noted.
The company resumed dividend payments ahead of expectations, declaring a final dividend of 180c a share, which, together with the interim dividend of 100c a share, brought the total dividend for the financial year to 280c a share.
At the time of the equity raising for the new nitric acid plant, the board indicated that the group would only resume dividends in 2013.
The company reported that its agriculture division showed good volume growth. Fertiliser prices increased steadily over the course of the year, reflecting the same trends seen in international markets, where demand outstripped supply.
But the weak activity in the manufacturing sector held back its chemicals division. “Despite low interest rates, economic activity levels in the South African manufacturing sector remained muted owing, in part, to rand strength against the US dollar. This hindered our chemicals division, as its primary customer base is drawn from the South African manufacturing sector,” the company said in a statement.
However, the chemicals division was expected to improve its performance in the year ahead by a renewed focus on growing revenue through volume growth in South Africa, supported by efficiency improvements and tight cost management.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Other Mining News
Jersey-headquartered Petra Diamonds plans to launch a $300-million notes issue and increase its senior lender debt facilities to fund the construction of a R1.65-billion processing plant at the Cullinan mine, in South Africa, by the end of 2017. The group outlined on...
Acting Transnet CEO Siyabonga Gama, who was appointed to the position following the surprise secondment of Brian Molefe to Eskom, has placed revenue diversification at the top of his list of immediate priorities, with the weak commodity outlook seen as having the...
Uranium miner Paladin Energy has reported a 10% decline in production during the March quarter from its Langer Heinrich mine, in Namibia. The company said on Friday that while mining production volumes remained on target, production at the Langer Heinrich plant was...
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
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.
This Week's Magazine
Forest products group Sappi has confirmed the selection of its 25 MW biomass-to-power project, to be erected at its Ngodwana mill, in Mpumalanga, as a preferred bidder under the South African government’s Renewable Energy Independent Power Producer Procurement...
Information and communications technology (ICT) distributor DCC is making Windows- and Android-operating systems tablets available through retailers and education equipment suppliers to provide school children with affordable, high-performance education tools. The...
Another cement manufacturer is set to enter the Ugandan market, raising hopes that prices will come down and spur growth in the construction industry. National Cement, a Kenyan manufacturer, has unveiled plans to invest $195-million in a new manufacturing plant in...
With growth rates exceeding that in the developed world – at an average of between 4% and 5% between 2002 and 2014 – African countries provide investors with ample reason to tap into booming consumer demand says Manufacturing Circle executive director Coenraad...
The South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) decreased by 3.7 index points month-on-month to 89.1 in March.