Grindrod posts another good half year

Terry Hutson GRINDROD LAST week posted yet another good performance for the six months ended June 30, 2002, continuing the turnaround begun over two years ago. Earnings increased by 61% to R80,4 million and gross revenue from R860 million to R1,11 billion, allowing an interim dividend of 14 cents a share to be declared compared with 8 cents a share for the same period in 2001. Managing director Ivan Clark says the good results were achieved despite difficult trading conditions in the tanker and bulk shipping markets. Unicorn Shipping in particular contributed substantially to the results thanks to a low cost base and some fixed charter contracts, and Island View Shipping (IVS) performed satisfactorily. In June the Group announced a joint venture known as Unifeeder between Unicorn Lines and Safmarine Container Lines, operating on the domestic and regional port routes from Mombasa on the east coast to Luanda on the west coast of Africa. "We've taken a strong position to renew our fleet of ships while the market is in a low cycle so that we will be in a position to take full advantage of increased earnings and capital appreciation when the market improves. The first of these ships were delivered to IVS earlier this year," he said. Grindrod's landfreight logistics businesses performed well in an increasingly competitive market and ships agency business also benefited from increased business and cargo flows, while at Richards Bay a R120 million expansion is underway at the Kusasa Bulk Terminal in order to cater for growing beneficiated mineral exports. "Looking to the future, there are signs of improvement in shipping markets and we are confident of achieving similar or better results in the second half of the year. As a result we look forward to continued favourable growth in earnings per share," says Clark