Mining Omnia Profits From Global Energy Demandadmin
DIVERSIFIED and specialist chemical services group Omnia, which yesterday posted a 30% increase in headline earnings per share to 724,5c for the year ended March, said there was significant potential for its mining division to expand into Africa.
CEO Rod Humphris said: “We remain particularly bullish on prospects for coal and uranium mining as a host of new projects and expansions come on stream to support global energy demand.
“Ongoing strong growth in world metal and mineral demand has benefited the explosives and mining chemicals markets and, notwithstanding the depressed margins of the past year, we anticipate achieving continued real growth.”
The company, which sells mining explosives and chemicals, also stood to benefit from the global demand for raw materials and building of nuclear power stations, he said.
“Although the South African economy is expected to slow down, a potentially weaker rand should enable the manufacturing sector to be internationally more competitive. Protea Chemicals, as a supplier to this sector, will continue to find new applications and grow its volumes,” Humphris said.
With the commissioning of Sasol’s Turbo project, polymer volumes would increase and the group was well positioned to embrace growth opportunities and deliver greater value .
Revenue for the year jumped 33% to R7,3bn from a year ago, while operating profit surged 38% to R584m as a result of the improved margins in agriculture. Operating margin increased to 8,0% from 7,6%. Net basic earnings per share surged 28% to 718,2c per share .
Humphris said the group had made significant progress with projects this year , including the commissioning of a plant for the processing of gypsum for the cement industry and the completion of a plant that would reduce greenhouse gas emissions at the group’s Sasolburg plant by 96%.