Good timing keeps Grindrod buoyant

Benefiting from charters entered into during market lows TERRY HUTSON SHRUGGING OFF any effects that a stronger rand might have had, Grindrod has announced a 155% increase in headline earnings and a 149% increase in cash generated from operations for the half-year ended June 30. “The group is continuing to benefit from the charters it entered into during market lows and the strong shipping markets in the current period,” said a buoyant MD Ivan Clark. He said he was confident of achieving similar earning levels in the second half of the year. “This can be done through the high level of contracted revenue from fixed charters and expected continued strength in world shipping markets.” Star performer was Island View Shipping (IVS), which Clark described as a major player in world dry bulk markets. IVS was continuing to achieve high growth due to the strong bulk shipping markets and a favourable fleet charter base. The fleet is being expanded with the delivery of additional bulk vessels contracted for charter some time ago. Clark said Grindrod would continue with its strategy of diversifying risk through having a mix of ships on long-term charter and in spot markets. 40% of the fleet is employed through fixed charters of one to three years, ensuring the effect on earnings will be minimised should the markets decline in the future. During the period Unicorn Tankers took delivery of two 37 000-dwt products tankers and has a further five remaining to be delivered. Grindrod’s landfreight operations have moved into fast moving consumer goods logistics and distribution which Clark indicated would be further expanded. “We’ll do this through greenfield opportunities, increased market share, the acquisition of complementary transport and logistics operations as well as the development of warehousing and terminal facilities in southern African ports.”