Grindrod’s earnings under pressure as shipping business struggles
by Staff Writer,
2016-02-25 08:45:14.0
GRINDROD’s full-year earnings have fallen by about one-third as conditions in the shipping industry remain tough.
The logistics company said its board and management had tried to mitigate the adverse effects of subdued market conditions on business performance and shareholder value.
"But the persistent decline in the dry-bulk shipping rates has continued into 2016 and is now at unprecedented levels. This has significantly impacted ship carrying values and the board has therefore deemed it appropriate to raise an impairment of $100m," the company said.
For the year to December 31 2015, Grindrod said headline earnings per share (HEPS) were down 31% to 74.4c compared with the year-earlier period. Revenue fell to R10.2bn from R13.9bn and the company made a net loss of R1.4bn from a net profit of R1.1bn in the year-earlier period.
Grindrod declared a final ordinary dividend of 6c per share, a decline from 20c last year.
Looking ahead, the company said current depressed commodity prices and dry-bulk shipping rates would continue to put pressure on its earnings in the near term.
Since the release of its last full-year results, the share price has dropped 52.97%. Shares closed at R8.96 on the JSE on Wednesday, valuing the company at about R6.8bn.
Picture: GRINDROD
GRINDROD’s full-year earnings have fallen by about one-third as conditions in the shipping industry remain tough.
The logistics company said its board and management had tried to mitigate the adverse effects of subdued market conditions on business performance and shareholder value.
"But the persistent decline in the dry-bulk shipping rates has continued into 2016 and is now at unprecedented levels. This has significantly impacted ship carrying values and the board has therefore deemed it appropriate to raise an impairment of $100m," the company said.
For the year to December 31 2015, Grindrod said headline earnings per share (HEPS) were down 31% to 74.4c compared with the year-earlier period. Revenue fell to R10.2bn from R13.9bn and the company made a net loss of R1.4bn from a net profit of R1.1bn in the year-earlier period.
Grindrod declared a final ordinary dividend of 6c per share, a decline from 20c last year.
Looking ahead, the company said current depressed commodity prices and dry-bulk shipping rates would continue to put pressure on its earnings in the near term.
Since the release of its last full-year results, the share price has dropped 52.97%. Shares closed at R8.96 on the JSE on Wednesday, valuing the company at about R6.8bn.
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