SOUTH African chemicals company Omnia Holdings declared a special dividend for the second consecutive year on Monday, as its expanding explosives business helped counteract the effects of adverse weather and economic instability on its African agriculture operations, said Reuters.
The company reported headline earnings per share of R7.04 for the year ended March, compared with R6.99 in the previous year. Omnia supplies fertilisers and soil additives across Africa and internationally, whilst also manufacturing explosives for the mining sector.
Omnia’s mining division posted a 10% revenue increase to R9bn, offsetting a 2% decline in agriculture business revenue, which faced challenging conditions across Africa excluding South Africa, said the newswire.
Omina CEO Seelan Gobalsamy said currency volatility in Zimbabwe, logistical disruptions in Mozambique due to political unrest, and severe drought impacts in Zambia had affected the company’s income.
However, rising demand for uranium, copper and other metals essential for the global transition to renewable energy is driving appetite for mining consumables and boosting Omnia’s explosives business performance.
The company is experiencing strong demand for mine explosives in Namibia, the Democratic Republic of Congo and Zambia, whilst its Indonesian joint venture continues to expand, Gobalsamy noted.
“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 alongside a special dividend of R2.75/share, returning R1.1bn to shareholders. The company paid a special dividend of R3.25 per share last year.
