JSE-listed logistics firm Grindrod, in a December 19 pre-closing buying and selling replace, mentioned its focus going ahead could be to drive progress in bulk dealing with, container dealing with, logistics functionality and rail and transport, including that demand for Grindrod’s logistics service providing and its long-term enterprise fundamentals stay sturdy.
Earnings earlier than curiosity, taxes, depreciation and amortisation (Ebitda) margin in its Port and Terminals phase remained wholesome at 35% this 12 months, down from 42% in 2023.
The Ebitda margin of the Logistics phase slowed to 22%, down from 30% within the prior 12 months, owing to the difficult working setting, a lower in container quantity throughput and a rise in low-margin transport brokering.
This influence has been partially mitigated by stable rail, ships company and clearing and forwarding enterprise efficiency, the corporate mentioned.
The corporate’s gross debt, as at November 30, was R3.1-billion, up from R2.9-billion in June, which is a rise of R200-million primarily because of funding in bulk infrastructure and rail.
At web debt of R400-million, down from R500-million in June, and with a net-debt to fairness ratio of 4%, down from 5% in June, Grindrod’s leverage stays low.
“The tender export drybulk commodity market that was skilled within the first half of this 12 months continued into the second half.”
All through 2024, subdued Chinese language financial progress, persistent downturn within the Chinese language property market and more moderen geopolitical developments have weighed available on the market of Grindrod’s portfolio of export drybulk commodities, the corporate added.
From July 1 to November 30, the common value decline recorded on Grindrod’s basket of export drybulk commodities was 28% in contrast with the identical interval the earlier 12 months. Nonetheless, the value efficiency for chrome, copper and manganese was resilient and grew 10%.
Following stimulus coverage bulletins by China, the influence on iron ore and metal demand was disappointing because the preliminary stimulus was not focused on the acceleration of the property and infrastructure sectors, Grindrod mentioned.
Additional, in South Africa, the working setting confirmed some enchancment on the quayside each in Durban and Richards Bay with quantity efficiency reflecting this.
Grindrod dealt with 5.1-million tonnes in its Richards Bay drybulk and Durban multipurpose terminals, up 28% on the prior interval. Richards Bay reported a exceptional quantity ramp-up on its conveyor belt operation, following its profitable recommissioning in January 2024, supported by Transnet Port Terminals’ stable efficiency on the quayside.
Nonetheless, inbound rail logistics into the Navitrade terminal in Richards Bay stays an space of focus, the corporate famous.
Moreover, the Rail enterprise targeted on the refurbishment of the 13 locomotives repatriated from Sierra Leone and varied engagements forward of the anticipated South African rail open entry.
Ships company and clearing and forwarding companies efficiency remained sturdy regardless of the difficult working setting, Grindrod added.
MOZAMBIQUE
In the meantime, within the fourth quarter of the 12 months, protests in Maputo impacted on quantity flows into the Port of Maputo precinct affecting operational efficiency of the port and Grindrod’s drybulk sub-concessions.
The protests, which started on October 21 and subsequently concentrated on the Komatipoort or Ressano Garcia border from October 24 resulted in intermittent border closures.
Consequently, 24 vessels have been delayed and 6 cancelled owing to inventory shortages on the quayside as at November 30.
“With the top of the 12 months approaching, all or a portion of delayed vessels, if not cancelled, can solely be dealt with within the new 12 months,” the corporate highlighted.
Additional, the Port of Maputo’s drybulk terminal, which handles primarily chrome, achieved 13.2-million tonnes for the 11-month interval to November 30, which is 14% greater on the prior comparable interval.
“The sturdy quantity efficiency momentum into the second half sustained the port towards the influence of the protests. In August, the port achieved a document 1.4-million tonnes underpinned by the buoyant chrome market, excessive inventory holding on the quayside and operational efficiencies,” the corporate highlighted.
Grindrod’s drybulk terminals in Mozambique dealt with 10.2-million tonnes, which is down 13% in comparison with the prior interval and was impacted by protests and the subdued coal market.
Grindrod’s 24.7% share of earnings from the Port of Maputo was R320.5-million, up 37% from R233.7-million in 2023, the corporate mentioned.
