Results reveal an increased level of shipowning profitability
GOOD PERFORMANCE by Unicorn Tankers and the sale of certain Griffin ships enabled the Grindrod Unicorn Group (Grincor) to show an increased level of shipowning profitability and enhanced headline earnings during the past year.
This was in spite of the continued downturn in international shipping, says chairman Murray Grindrod, with the Durban-based group reporting a 39% increase in headline earnings to R49,7 million.
Earnings were, however, lower than forecast due to substantial additional wind-up costs on discontinued trades, an unexpected sharp increase in South African interest rates, and a further softening in charter rates, on dry cargo vessels.
Grindrod says that four ships were sold during the year and the container ship scheduled for delivery this month has been sold to a third party who will take delivery directly from the shipyard.
Disinvestment in a substantial portion of its under-performing liner business, the sale of the non-core businesses of Fast Lane and Storm and Co, together with rationalisation of management structures will enable Grincor to further focus its operations and provide a totally integrated freight logistics chain for cargoes moving to, from and within southern Africa, says Grindrod.
