Shares in Grindrod Shipping leapt to a 22 percent high yesterday after it said that it achieved a stellar performance boosted by handysize and UltraMax bulk segments in its second quarter.
The shares traded at an intraday high of R384.98, having increased by 305.42 percent in the past year.
The global provider of maritime transportation services predominantly in the drybulk sector posted revenues for the three months ended June 30, 2022 of $161.6 million (R2.7 billion); gross profit of $64.6m (R1.088m), with profit for the period at $56.8m (R957m) or $2.99 (R50, 3) per ordinary share.
The group declared a gross cash dividend of $0.84 (R14, 1) per ordinary share.
Stephen Griffits, interim chief executive and chief financial officer, said: "Grindrod Shipping reported another record quarterly performance with a strong second quarter of 2022 reflecting the resilient markets in our handysize and supramax/ultramax drybulk carrier segments.
Griffiths said the dry bulk market remained healthy in the second quarter 2022, despite the ongoing Russian-Ukraine conflict and disruptions in traditional trade routes.
"The smaller segments in which we operate are still earning a premium over the larger vessels due to their versatility, benefiting from a broader base of cargoes and continued spillover from the container trade. The supply picture remains at very healthy levels with continued minimal ordering of new vessels due to concerns over environmental regulations and higher new building prices," Griffiths said.
Looking ahead, he said as the firm headed into the second half of the year, more macroeconomic concerns had emerged as the global economy grapples with elevated inflation levels and rising interest rates.
“Thus far the impact on the dry cargo market has been minimal, though we remain prudent in our approach to risk management given the potential uncertainty," he said.
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