Grindrod grows its headline earnings by 9% to R525.2m

PORTS, terminals and logistics group Grindrod grew headlines earnings from continuing businesses by 9 percent to R525.2 million (R480.2m in the same period previously) in the year to end December after strong growth in volumes handled.

The group said in a statement that a focus on bulk and container corridor solutions for specific clients, with increased emphasis on integrated service offerings and investments in key infrastructure yielded positive results.

It said that it also managed to strengthen its banking service offering, growing in the SME and property markets and developing platform solutions for the fintech market.

Grindron said it had declared a final gross dividend of 14.2 cents (14.6c).

It said group earnings improved from a loss of R20.3m in 2018 to R299.9m.

Port and Terminals reported strong volume performance and the divisions’ earnings increased by 26 percent to R175.2m (2018: R139.6m).

Overall Logistics results of R133.7m (2018: 508.2m) were satisfactory, with the strong performance achieved by the Intermodal and Seafreight businesses, in a challenging market.

Highlights for 2019 included additional handling equipment, rehabilitation of berths and establishment of a training centre.

Record volumes of 21 million tons were handled at Port Maputo, up 8 percent over 2018.

Record loading volumes monthon-month at Grindrod’s Matola Terminal were reported. A record 81 percent utilisation of its nameplate capacity of 7.3 million tons was reached.

The terminal’s efficiencies, as well as rail efficiency improvements and strong collaboration between Transnet Freight Rail and Mozambican Ports and Railway Company, provided the confidence to deliver on contracted volumes.

The 24-locomotives from Sierra Leone had returned and had been deployed to commercial partners.

A cross-dock facility was operational in Nacala and providing logistics solutions for the Balama and Malawi regions.

The acquisition of land in Palma positioned the business to service the logistic requirements for the liquid gas development in the region.

Container handling facilities in Johannesburg, Cape Town and Durban were expanded to 600 000m2 and further expansion to 750 000m2 was planned.

“Grindrod will continue to develop customer solutions, securing contracted volumes and expand its footprint along strategic trade corridors by investing in infrastructure and people,” chief executive Andrew Waller said.

Grindrod shares closed 2.99 percent higher at R4.48 on the JSE yesterday.