TERRY HUTSON IT WAS another record-breaking half year to June for shipping and logistics company Grindrod, with an 80% increase in profits amounting to R407m. And right up front are the shipping services with earnings growth of 81% over the same period in 2004. Flagship role is still held by Island View Shipping operating a large fleet of handysize, panamax and capesize bulkers. IVS continues to expand and during 2005 has taken delivery of four newbuilds with another eight to follow, all at favourable rates. Unicorn Shipping produced excellent results from both contracted and spot earnings, which MD Ivan Clark attributes partly to the strong tanker markets and the weakening rand against the dollar since December 31, 2004. He said Unicorn’s fleet was further expanded with a container ship and an order for two 12 800-dwt products tankers. Unicorn Shipping also acquired a 50% share in another product tanker for delivery in 2006 and has a total of seven newbuildings on order all at favourable prices, plus four chartered ships at good rates - all for delivery within the next three years. “The group’s strategy is to diversify risk through having a mix of ships with contracted income and ships employed in the spot market. We have about US$48m contracted profit for 2006 and we will continue to look for opportunities to lock in further earnings when the timing is right,” said Clark. To finance these opportunities Grindrod will use cash generated from operations and R500m capital raised as preference shares from a recent issue for further investment opportunities.
