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Business|Charter|Container|Freight|Gas|Grindrod|Locomotives|Logistics|Terminals|Operations
Business|Charter|Container|Freight|Gas|Grindrod|Locomotives|Logistics|Terminals|Operations
business|charter|container|freight|gas|grindrod|locomotives|logistics|terminals|operations

Grindrod expects to report interim loss as a result of Covid-19

19th August 2020

By: Marleny Arnoldi

Deputy Editor Online

     

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As a result of Covid-19-specific actions, JSE-listed freight logistics group Grindrod expects to report a loss of between R286-million and R316-million for the six months ended June 30.

The company expects to post an interim loss a share of between 42.2c and 46.6c.

While the core business remained buoyant, Covid-19-specific actions resulted in one-off adjustments. These included dividend withholdings tax of R31.6-million on repatriation of undistributed profits of $27.9-million from Mozambique and fair value adjustments on the private equity portfolio of R270-million.

A R90-million mark to market adjustment was also required on the Grindrod Shipping shares held.

Cash generated from operations exceeded R500-million in the six months under review, which was well up on the prior year.

Additional banking facilities advanced of R450-million remain available and unused.

The company’s balance sheet continues to be strong with net debt to equity of 5%.

Grindrod’s Port and Terminals division reported good volumes through the Maputo Port and Matola Terminal. The Seafreight business and its landside container operation achieved earnings growth underpinned by its increased port activities.

Grindrod’s presence in the northern Mozambique gas region gained momentum with four barges now on charter.

Continued effort in aligning all parties on the North-South corridor remained a focus with the deployment of locomotives and wagons now also on the Dar es Salaam corridor.

Grindrod Bank continues to operate cautiously during this time, ensuring that its liquidity cover and capital adequacy ratios remain above minimum regulatory requirements.

Grindrod will release its results for the interim period on or about August 27.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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