http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.13Change: 0.02
R/$ = 12.06Change: 0.02
Au 1186.55 $/ozChange: -0.90
Pt 1119.50 $/ozChange: -5.00
 
 
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  
 
 
Jun 26, 2012

Omnia sees buoyant growth from mining, profit hits record

Back
Agriculture|Johannesburg|Africa|CoAL|Copper|Explosives|Mining|Namibia|Omnia|Africa|Democratic Republic Of Congo|South Africa|Chemicals Division|Explosives|Fertiliser|Manufacturing|Manufacturing Sector|Product|Products|Rod Humphris
Agriculture||Africa|CoAL|Copper|Explosives|Mining|Namibia||Africa|Democratic Republic Of Congo||Explosives|Manufacturing|Products|
agriculture|johannesburg|africa-company|coal|copper|explosives|mining|namibia|omnia|africa|democratic-republic-of-congo|south-africa|chemicals-division|explosives-industry-term|fertiliser|manufacturing|manufacturing-sector|product|products|rod-humphris
© Reuse this



Chemicals, explosives and fertiliser group Omnia said on Tuesday that its chemicals division remained under pressure as the activity levels in the South African manufacturing sector continued to be muted, but that it was seeing buoyant growth from its mining and agriculture divisions.

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
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Mining News
Kriel power station
Updated 5 hours ago South African power utility Eskom faces a 17-million tonne coal shortfall by 2017 at its coal-fired power plants, a Cabinet Minister said on Wednesday. The shortfall is anticipated in 2015 at Matla, Tutuka and Hendrina power stations and in 2016 at Kriel and Arnot...
Updated 5 hours ago JSE-listed Impala Platinum (Implats) has decided not to sell its Marula operation, in Limpopo, and plans to improve the performance of the operation instead. The platinum miner announced in February that it would sell Marula, as part of measures to conserve cash.
More
 
 
Latest News
IMD World Competitiveness Center director Arturo Bris
Updated 1 hour 30 minutes ago South Africa slipped one position, from 52 to 53, in the latest world competitiveness ranking, which highlighted power and infrastructure shortfalls, high youth unemployment, as well as inadequate education and technical skills availability as key challenges to the...
Updated 4 hours ago JSE-listed Dipula Income Fund reported that its distributable earnings grew 33.2% in the six months ended February 28, translating into a combined growth of 6.8% in distributions for both A- and B-linked units. The distribution attributable to the A-linked units was...
Updated 4 hours ago JSE-listed Growthpoint Properties’ Kirstenhof Office Park, in Johannesburg, has become the hundredth building in South Africa to achieve a Green Star SA certification from the Green Building Council of South Africa (GBCSA), securing a 5-Star Green Star: Existing...
More
 
 
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
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
FREDRIK JEJDLING Sustainability becomes an important part of a business’ decision-making process
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...
 
 
 
 
 
 
 
 
 
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