Grindrod’s first half profit up 14%

Grindrod’s first half profit up 14%    Durban, South Africa-based shipping and logistics group Grindrod Ltd. reported first half profit of 465 million rand ($68 million), up 14.1 percent over the same period last year.
   The group’s product tanker, chemical tanker and containership fleet is owned, chartered and operated by its subsidiary Unicorn Shipping. The handysize, Panamax and capesize bulk carrier fleet is managed by another subsidiary, Island View Shipping.
   The group said that a larger fleet, ship sales, contractual income and the weakness of the rand against the U.S. dollar all contributed to a 13 percent earnings growth from shipping. Grindrod said its trading, freight and financial services segments had mixed results but still posted a combined 34 percent growth in earnings.
   “We are extremely happy with our results, especially given the lower shipping markets compared to the first six months of last year,” said Ivan Clark, Grindrod’s outgoing chief executive officer.
   “Markets are normally softer during the northern hemisphere summer but recovered earlier than anticipated,” said Alan Olivier, Grindrod’s CEO designate who will succeed Clark at the end of the year. He is also executive director and managing director of Unicorn Shipping.
   “Shipping markets have improved substantially over recent weeks and the outlook for the second half of the year is favorable due to stronger than anticipated demand for both dry bulk and petroleum products,” Olivier said.
   Grindrod’s strategy is to “increase the profit contribution from freight operations through the acquisition or development of complementary businesses aimed at providing a full range of transport, warehousing and logistics services to our customers.”
   “Our non-shipping businesses are taking some time to fully develop but have huge potential,” said Clark.