Logistics group Grindrod expects full-year earnings to almost quadruple, thanks to strong performances at Matola Terminal and Maputo Port.
The group, which is valued at R13bn on the JSE, said on Wednesday that headline earnings for the year ended in December are expected to be between R1.175bn and R1.225bn compared with R312m a year ago. This translates to headline earnings per share of between 176.1c and 183.6c, from 46.7c before.
Earnings for the year are expected to be between R2.044bn and R2.094bn compared with R314m a year ago. Earnings include one-off net profits of R902.8m relating to foreign currency translation reserves released on both the buy-up of the remaining 35% interest in the Matola terminal joint venture and the exit of the marine fuel trading joint venture, as reported at the halfway stage, it said.
Headline earnings from core operations are expected to be between R1.153bn and R1.203bn compared with R1.004bn previously. HEPS from core operations is expected to be between 172.8c and 180.3c, from 150.4c before.
Core operations consist of the Port and Terminals, Logistics and Group segments.
“The improvement in core operations performance was underpinned by the Matola Terminal achieving a record 9.9-million tonnes per annum (mtpa) and the Maputo Port-operated terminal achieving record own-handled volumes of 15.2 mtpa,” it said.
The Maputo Port Development Company, in which Grindrod owns a 24.7% stake, holds the main concession to operate the port of Maputo.
Grindrod operates specific terminals within the port, including the TCM [Terminal De Carvão Da Matola] dry bulk terminal under sub-concessions, and the overall port concession was recently extended to 2058. The port is a key regional logistics hub.
Grindrod will release its results on March 6.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.