Grindrod (GND) on Thursday reported a 96% increase in diluted headline earnings per share to 504,7 cents for the year ended December 2008 from 257,7 cents a year ago.
A final dividend of 68 cents per share was declared, up from 44 cents a year earlier, making a total dividend of 136 cents, up 74% from 78 cents in 2007.
Revenue was 88% higher at R33,737-billion, while operating profit before interest and tax was 104% higher at R2,785-billion.
The company said the tanker market remained largely stable in the past year, however, both record highs and all time lows were experienced in drybulk shipping markets.
The effects of the credit crisis impacted on the global economy, resulting in significant reduction in shipping activity. In spite of this, shipping continued to be the major profit contributor at 83% of total earnings.
Trading had an excellent second half, which resulted in earnings growth of 105% for the year. Freight Services experienced strong growth in earnings of 74%. Financial Services results were impacted by the reduced shareholding as a result of the empowerment transaction, declining equity markets and the slowdown in local economic activity but nonetheless achieved the same earnings as the previous year.
Cash generated from operations was up 126% at R4,312-billion.
Subsequent to year end, Freight Services concluded a BEE transaction with Calulo Petrochemicals and Adopt a School Foundation with the disposal of a 25,1% interest in Grindrod (South Africa).
Grindrod intends re-entering the rail sector through the conclusion of a joint venture, subject to the remaining conditions precedent being fulfilled, which will culminate in the establishment of RRL Grindrod, a 53% black-owned company.
This business will provide locomotive leasing, rail operations and shunting services to its clients. RRL Grindrod’s intention is to grow its locomotive fleet to support its client base and position itself to capitalise on business opportunities arising from rail restructure in South Africa. — I-Net Bridge