Grindrod Shipping has registered a rise in its shares as they leaped to a 22 percent high on Thursday and the company has shared the reasons behind this achievement.
The logistics company says it accomplished this and credited it to a stellar performance boosted by handysize and UltraMax bulk segments in its second quarter of the financial year.
IOL posted a piece that the shares traded at an intraday high of R384.98, having increased by 305.42 percent in 2021.
Grindrod Shipping is touted as one of the most influential players in the maritime transportation space as they provide services predominantly in the dry bulk sector.
It posted revenues for the three months that ended June 30, 2022 and registered $161.6 million (R2.7 billion), gross profit of $64.6m (R1.088m), with profit for the period at $56.8m (R957m) or $2.99 (R50, 3) per ordinary share.
It is now reported that the business also declared a gross cash dividend of $0.84 (R14, 1) per ordinary share.
“Grindrod Shipping reported another record quarterly performance with a strong second quarter of 2022 reflecting the resilient markets in our handysize and supramax/ultramax dry bulk carrier segments,” said Stephen Griffits, interim chief executive and chief financial officer.
Furthermore, the CFO also added that the dry bulk market remained healthy in the second quarter of this year despite the ongoing Russian-Ukraine conflict and disruptions in traditional trade routes.
“The smaller segments in which we operate are still earning a premium over the larger vessels due to their versatility, benefiting from a broader base of cargoes and continued spillover from the container trade,” he added.
“The supply picture remains at very healthy levels with the continued minimal ordering of new vessels due to concerns over environmental regulations and higher new building prices.”
The interim CEO also shared his thoughts on the future saying he is upbeat but pointed out that more macro-economic concerns had emerged as the global economy grapples with elevated inflation levels and rising interest rates.
“Thus far the impact on the dry cargo market has been minimal, though we remain prudent in our approach to risk management given the potential uncertainty,” he concluded.
Main Image: Grindrod Shipping
