How Grindrod weathered the storm and cut losses
Its ports and terminals division records a 'satisfactory' profit and its shipping division recovers to above cash break-even
Grindrod expects a net loss of R97m to R77m for the six months ended June 2017, or between 91% and 93% better than the net loss attributable to ordinary shareholders of R1.12bn in the matching period in 2016. This comes as commodity markets have improved. At the same time, top management has changed at the freight, shipping and financial services group. Michael Hankinson is acting executive chairman after former CEO Alan Olivier stepped down in July. The board is in the process of appointing a new CEO. "The tide seems to be turning at long last, as resource commodity prices appear to be consolidating around current levels," said Ron Klipin, a Cratos Wealth portfolio manager. "This has impacted positively on shipping rates, which have now begun to reflect the stronger underlying export demand." Grindrod’s ports and terminals division recorded a "satisfactory" profit, and the shipping division recovered to above cash break-even following a strengthening of dry bulk shipping rates, the...
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