3 days ago
Omnia declares special dividend as mining business shores up profits
Chemicals company Omnia Holdings on Monday declared a special dividend for the second year running after its growing explosives business helped offset the impact of bad weather and economic turbulence on its African agriculture business.
Omnia reported headline earnings per share — a key profit measure — of R7.04 in the year ended March 31, compared with R6.99 the previous year.
The company, which supplies fertilisers and soil additives to countries in Africa and abroad, also manufactures explosives used in the mining industry.
Omnia's mining division reported a 10% increase in revenue to R9bn, helping to offset a 2% revenue decline in the agriculture business, which was affected by challenging operating conditions in Africa.
Currency volatility in Zimbabwe, logistical disruptions in Mozambique due to political unrest and the impact of a severe drought in Zambia had affected Omnia's income, CEO Seelan Gobalsamy said in an interview.
However, increased demand for uranium, copper and other metals vital for the global shift to renewable energy are driving demand for mining consumables and boosting income for Omnia's explosives business.
Omnia was seeing strong demand for mine explosives in Namibia, the Democratic Republic of Congo and Zambia, while its Indonesian joint venture also continues to grow, Gobalsamy said.
'Our mining profits are now higher than our agriculture profit,' Gobalsamy said. 'We all know Omnia for fertiliser, but mining is now bigger than our agriculture business.'
Omnia declared an ordinary dividend of R4 per share and a special dividend of R2.75 per share, returning R1.1bn to shareholders. Last year the company paid out a special dividend of R3.25 per share.
