JSE-listed freight and logistics company Grindrod has decided to dispose of its marine fuels business and its agricultural investments to focus its efforts on core operations.

CE Andrew Waller on Friday said he expects the sale of these assets to be completed by 2020.

For the six months ended June 30, these discontinued operations reported a trading loss of R241-million; however, continuing operations – port and terminals, logistics and bank – generated a trading profit of R678-million.

The trading profit was up 22% compared with the R556-million trading profit reported for the six months ended June 30, 2018.

The company grew its headline earnings for the six months under review by 118% to R136-million, compared with the R62-million reported for the prior comparable period.

Waller explained that Grindrod’s freight services business was focused on unlocking sub-Saharan African trade corridors, aligning its businesses along key corridors, connecting and extending supply chains and effectively providing a corridor solution for cargo flow.

The marine fuels business and agricultural investments do not fit into the company’s corridor solutions strategy, resulting in the decision to sell the assets.

Meanwhile, in the six months under review, Grindrod acquired mobile cranes and undertook slab and quay development at the Maputo port, in Mozambique, to improve efficiency.

The company also upgraded its facilities in Richards Bay and Durban, in South Africa, to cater for new cargo and customers.

Grindrod further developed new customer contracts, involving shipping lines, cement, coal, haematite and vehicle freight and logistics.

The company increased its cement, steel and mill shipments, in Mozambique, despite the negative impacts of Cyclone Idai in Beira.

Waller said the company is closely monitoring oil and gas developments by US oil firm Anadarko Petroleum, in northern Mozambique, which may give rise to work opportunities for Grindrod.

Grindrod is also building solutions for the improved movement of copper, sulphur and fuel along its Democratic Republic of Congo and Zambia corridors.

Meanwhile, Grindrod’s bank business has been further capitalised with R100-million following good growth in deposits and advances, at 7% and 5%, respectively, to R9.4-billion and R7.9-billion, respectively, in the reporting period.

The bank is currently focusing on property lending and the small and medium-sized enterprise market.

Grindrod declared an interim dividend of 5c apiece for the reporting period. It had not declared a dividend for the prior comparable period.