Investors pile into Afrox after upbeat trading update
THE share price of African Oxygen (Afrox) jumped 9.8% to R21.90 on Tuesday morning after it said it expected interim earnings to more than double.Afrox said it expected to report on September 8 that basic earnings for the six months to end-June grew between 106% and 126% from the matching period’s 35c.Headline earnings per share (HEPS) are expected to grow between 90% and 109% from 37c.Afrox’s previous interim earnings suffered from R126m restructuring costs which did not recur in the first half of this financial year.The gas supplier has announced a string of contracts in the past few months. In May, it signed an import agreement with Petredec, described as one of the largest global liquefied petroleum gas traders, and Bidvest Tank Terminals.It also won a five-year, 10-tonnes-a-day contract to supply bulk nitrogen to Limpopo-based frozen fruits exporter Westfalia Fruit Products.Afrox recently announced a partnership with alternative energy company Renergen for the commercialisation...
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