AECI CEO Mark Dytor
Photo by: Duane Daws
Explosives and specialty chemicals group AECI on Wednesday posted higher headline earnings a share (Heps) for the six months to June 2013 on the back of an improved performance from the explosives sector.
Heps and basic earnings a share rose to 356c during the interim period, compared with the 106c and 120c respectively recorded in the comparative period the year before.
The 238% increase to R399-million in headline earnings was also attributed to the nonrecurrence of the R138-million once-off, noncash IFRS 2 charge for its broad-based black economic-empowerment transaction with the AECI Community Education and Development Trust.
The JSE-listed group noted a 28% increase in profit from operations, which reached R612-million during the first half of 2013, while profit for the period under review increased to R401-million, from R136-million achieved in the first half of 2012.
A weaker rand/dollar exchange rate and higher ammonia prices contributed to a 13% rise in group revenue, to R7.2-billion, for the interim period under review.
AECI’s explosives division, AEL Mining Services (AEL), reported 22% higher revenue, at R3.56-billion, in the six months to June 2013, up from R2.9-billion in the six months to June 2012, as ammonia prices increased 44% and bulk explosives volumes grew at 3%.
The division recorded increased profit from operations to R312-million – a 75% jump compared with the R178-million reported in the prior corresponding period.
Operating margin recovered from 6.1% in the first half of 2012, to 8.8% in the period under review.
Revenue from the group’s specialty chemicals unit increased 3% to R3.67-billion, while profit from operations decreased 2% to R389-million.
The division’s operating margin declined to 10.6% in the interim period, compared with the 11% reported in the first half of last year, owing to a lag in foreign-exchange-related price increases.
AECI declared an interim dividend of 105c a share for the six months to June 2013, up 35% from the 78c declared in the interim period last year.