GCR Ratings affirmed the outlook of Omnia from stable to positive, the chemicals, fertiliser and explosives group said on Tuesday, as its earnings profile is expected to improve over the next two years.
The Moody’s affiliate affirmed Omnia’s long and short-term national scale issuer ratings at A(ZA) and A1(ZA) because of its conservative capital management policies.
Omnia CEO Seelan Gobalsamy said this was testament to the company’s strategy and efforts to create value for its stakeholders over the past three years. “As we stabilised and renewed the company, improvements in our financial position and operational resilience have lifted our credit profile and rating. We continue to closely manage our capital and liquidity, particularly in the current volatile economic and trading environment.”
The fertiliser producer benefited from the spike in prices during the Covid-19 pandemic, which recently increased because of the war in Ukraine. Supply is also being affected by the supply chain issues and backlogs at ports worldwide.
The company makes explosives for the mining industry and chemicals that are used in industries such as consumer care, agriculture, manufacturing, food and pharmaceuticals.
Omnia, valued at R10.4bn on the JSE, said in June it is eyeing further expansion of its international mining and agriculture portfolio in Canada, Indonesia and Australia where demand for greener inputs and mining solutions is climbing.
Omnia’s competitiveness is underpinned by proprietary technologies, modernised production processes, improved supply chain control and varying degrees of integration of manufacturing capabilities across business segments, GCR Ratings said.
It highlighted Omnia’s strength in terms of geographical diversification and as a leading producer and supplier of fertilisers, and manufacturers of explosives in Africa.
Correction: August 24 2022
An earlier version of this story said GCR Ratings upgraded the outlook of Omnia from stable to positive. GCR Ratings affirmed Omnia’s outlook.
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