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Johannesburg - Africa's biggest shipping group, Grindrod [JSE:GND], posted a 10 percent fall in half-year profit on Thursday, as a stronger rand ate into its overseas earnings.
Grindrod, whose vessels haul raw materials such as iron ore, cement and fertilizer, said headline earnings per share fell to 95.4 cents in the six months to end-June from 105.7 cents a year earlier.
Headline EPS is the main profit gauge in South Africa and strips out certain one-off and non-trading items.
Grindrod, which earns most of its profit from its shipping unit, has suffered tough times in recent years as poor global appetite for raw materials took its toll on freight rates and volumes.
A stronger rand is a negative for companies like Grindrod that make much of their earnings in US dollars, because it erodes profits when overseas earnings are brought back to South Africa.
The company said it may find opportunities from volatility in shipping, commodity and financial markets. It also declared an interim dividend of 27 cents per share.
Shares in the Durban-based company have fallen nearly 15 percent so far this year
Volatility is likely in shipping, commodity and financial markets which may offer opportunities to the group. The high contract cover will reduce the group's exposure to possible shipping market fluctuations. The group results are sensitive to the rand exchange rate.
