Omnia Holdings, a South African chemicals company, has announced a special dividend for the second consecutive year, driven by the growth of its mining business. However, the company faced significant challenges in Mozambique, where political and social instability negatively impacted its revenue, Reuters reported on Monday, June 9.
According to Omnia’s CEO, Seelan Gobalsamy, “Currency volatility in Zimbabwe, logistical disruptions in Mozambique due to political unrest, and the impact of severe drought in Zambia affected the company’s revenue.”
In Mozambique, violent post-election protests disrupted operations at the port and the Maputo Corridor, making it difficult to move essential goods. Ships with cargo were left docked at Maputo Port, unable to unload due to a halt in road transport. Additionally, warehouse and supermarket lootings worsened food shortages in the southern region, especially affecting the supply of rice.
Financial Results
For the fiscal year ending March 31, Omnia reported earnings per share (EPS) of $0.39 (24.11 meticais). The company, which supplies fertilizers and soil additives to countries in Africa, also manufactures explosives used in the mining industry.
Omnia’s mining division reported a 10% increase in revenue to $500 million (31.9 billion meticais), helping to offset a 2% decline in revenue from its agricultural segment, which faced challenging operational conditions across Africa, excluding South Africa.
However, the growing global demand for uranium, copper, and other critical metals essential to the transition to renewable energy is boosting the demand for mining consumables, thereby increasing revenue in Omnia’s explosives business.
“The company has seen strong demand for mining explosives in Namibia, the Democratic Republic of Congo, and Zambia, while its joint venture in Indonesia also continues to grow,” said Gobalsamy.
“Our mining profits now exceed our agricultural profits,” he added, emphasizing: “Everyone knows Omnia for fertilizers, but mining is now larger than our agricultural business.”
Declared Dividends
Omnia declared an ordinary dividend of $0.22 (0.69 meticais) per share and a special dividend of $0.15 (0.47 meticais) per share, returning $61.5 million (3.8 billion meticais) to shareholders. Last year, the company paid a special dividend of $0.18 (0.56 meticais) per share.
Source: Diário Económico
