Record earnings from its mining division has helped chemicals solutions group AECI report a marked improvement in its full-year operational and financial performance.
The group said on Wednesday that headline earnings per share for the year ended December increased by 53%.
Revenue from continuing operations was down 4% to R32.18bn.
A final dividend of 128c per share was declared, taking the total dividend for the year to 228c.
The group said the performance reflected higher underlying profitability, and was driven by disciplined pricing, cost and margin management, supported by a focused strategic effort to strengthen the company’s core fundamentals.
“I am especially proud of AECI Mining’s excellent performance this year, with a record-high ebitda and the excellent free cashflow generation achieved at AECI Chemicals,” said interim CEO Dean Murray.
Murray was appointed after Holger Riemensperger stepped down as CEO in October last year.
During the year, AECI realised R2.2bn from the disposal of non-core assets and reduced net debt to R465m from R3.7bn.
AECI completed the disposal of Schirm USA in August last year for a total consideration of $60m.
The disposal was in line with AECI’s strategy of optimising its portfolio and creating a platform for growth.
The company plans to focus on its core businesses — AECI Mining and AECI Chemicals — while divesting from managed businesses that offer limited synergies with the chosen core businesses.
“The group remains firmly committed to delivering long-term value for stakeholders,” Murray said.
“Looking ahead, the company will further continue to focus on its strategic fundamentals by leveraging core competencies and operational expertise.”
- Business Day