GRINDROD LIMITED 2022 FINANCIAL RESULTS
DURBAN, SOUTH AFRICA, 2 March 2023 – Grindrod Limited (Grindrod) announced its final results for the year ended 31 December 2022.
On the back of strong commodity markets, Grindrod's core operations, Port and Terminals and Logistics reported R1.1 billion in headline earnings, up 37% on the prior period. The port exported a record 10 million tonnes, up 29% on the prior period. Grindrod’s terminals also handled a record 16 million tonnes, up 23% on the prior period. Grindrod has returned in excess of R0.6 billion to the shareholders in dividends.
The disposal of Grindrod Bank to African Bank was concluded successfully in November 2022, marking a significant milestone in progressing the non-core exit strategy.
Port and Terminals
Record volume growth in the Port of Maputo was underpinned by its rehabilitated berths, expanded slabs, new handling equipment, upgraded rail wagon discharge facility and a 24-hour border operation.
Grindrod’s record performance contribution came from its Matola facility, which handled 8.1 million tonnes, and Maputo coal terminal, which grew its volume nearly 5-fold to 3.2 million tonnes. Richards Bay and Namibia also recorded strong volume growth.
Grindrod provided access to the export market to seven emerging miners, with a combined tonnage of 3.2 million tonnes across its facilities in Richards Bay, Durban and Maputo.
The alternative route to market through the Goba line in Eswatini, easing the Lebombo and Resanno Garcia border traffic, continues to deliver with an additional customer having signed up. Over 1 million tonnes of cargo have been handled through this route, providing business and employment opportunities to Eswatini communities. Support from Eswatini Rail and CFM has enabled this performance.
We are pleased with the implementation of the joint venture with Maersk, which became operational on 1 January 2023. Plans are afoot to integrate and grow this solution for our customers.
We took advantage of the strong shipping rates on our charter subleases which contributed markedly to the coastal shipping and container depot results. We expanded our Denver container facility in Johannesburg by adding 75 000 m2 of container handling yard. This facility is strategic in our quest to provide an efficient solution for container volume between Durban and Johannesburg. We are establishing two new intermodal sites in Durban and implementing a long-haul transport offering from Gauteng to KwaZulu Natal.
The heavy haul operation in Sierra Leone, where 11 locomotives remain deployed, exceeded expectations. To date, 5.6 million tonnes of iron ore was hauled from the mine to Pepel Port, providing a complete mine-to-port solution for our customer through our rail capability.
The graphite export solution in Nacala continues to deliver well for our customer. Responding to container shortages, Grindrod supports an alternative route to market by shipping bagged graphite as breakbulk through Pemba. We have commenced construction of a facility in Pemba Port to support this solution.
Grindrod is pleased to announce that it has joined forces with Ntiso Logistics as its business partner in its South African operations. Ntiso Logistics is a subsidiary company of Ntiso Investment Holdings founded by the executive chairman, Mcebisi Jonas.
“We are relentless in remaining relevant to our existing customer base and attractive to new customers looking for the most efficient and cost-effective route to market. We have committed people and strategically positioned infrastructure to craft unique and bespoke solutions for our customers,” says Xolani Mbambo, CEO of Grindrod Limited.
For further information, please contact:
+27 31 302 7113 or +27 83 419 2970