Grindrod
Annual Report 2010
Chairman’s Report
The contrast between 2008 and 2009 could not be starker. 2008 was a year of super profits at the height of a world shipping boom, whereas 2009 profits were achieved against a year of major economic collapse
I am privileged to be writing this chairman’s report in the year in which Grindrod celebrates its centenary. It was in 1910 that Captain John Edward Grindrod started the shipping and forwarding agents business, Grindrod & Company. The past 100 years have been a remarkable journey and we can marvel at the many achievements of the group as it is today.
As I highlighted in my last report, 2009 has turned out to be a most challenging year for Grindrod. Against the background of global economic turmoil and the intensifying recession, the accompanying massive decline in shipping rates severely impacted our business.
CEO’s Report
Well positioned in difficult market
The group's 2009 results were recorded against the backdrop of a major global recession characterised by volatility and uncertainty in financial, commodity and shipping markets...
FD’s Report
EBITDA R1,4 billion
Group revenue at R27,7 billion was 18% lower than the prior year due to lower shipping charter rates and commodity prices during 2009.
Shipping
Shipping earnings declined by 74% from R1 862 million to R492 million on the back of the decline in shipping rates...
- average earnings per day outperformed average spot market rates.
- substantially lower ship sale profits in 2009 of US$31 million.
Trading
The division's earnings growth was not impacted on by the acquisition of the remaining 50% interests in the marine fuel and industrial raw materials businesses during 2008.
- developed a presence in Singapore to service increasing Asian market.
- gross revenue declined by 15% due to generally softer commodity prices.
Freight Services
Freight Services comprises the group’s investments in ports, terminals, integrated land-based logistics and regional container feeder shipping operations...
- accounted for 24% of the group’s earnings in 2009, up from 9% in 2008.
- challenging market conditions with a contraction in cargo volumes across most businesses.
Financial Services
Consolidated Bank profits grew 3% year on year, largely attributable to strong fee income from property finance, corporate lending, corporate finance and treasury activities.
- deposits at record levels.
- growth in earnings.
- no bad debt.