Revenue was up 15 per cent to 15.9 million rand from 13.8 million rand in 2012, 33 per cent of which was generated outside South Africa.
Earnings per share were up 63 per cent to 845 cents from 520 cents in the previous comparative year, and headline earnings per share were up 75 per cent to 791 cents from 502 cents in 2012.
“AECI produced commendable results in 2013 in an environment where trading and market conditions remained challenging,” the company said in a statement.
[DATA AFE:AECI] is an explosives and specialty chemicals group based in South Africa.
Net operating costs for the company also increased to 14.5 million rand from 13.5 million rand in 2012. Profit from operations increased by 17 per cent to 1.3 million rand from 1.1 million rand in 2012.
The AECI Board declared a final cash dividend of 210 cents per ordinary share, compared to 185 cents in 2012, bringing the total cash dividend for the year to 315 cents per share, a 20 per cent increase on 2012’s 263 cents per share.
“AEL benefited from the weakening rand as more than 50 per cent of its revenue is generated outside South Africa and is mostly denominated in US dollars. Consequently, the profit improvement in AEL’s foreign operations enhanced the overall result by 72 million rand,” the group explained.
Revenue for the company’s explosives segment was recorded at 7.4 million rand from 6.3 million rand in 2012.
AEL Mining Services, which is within the company’s explosives segment, achieved a 17 per cent increase in revenue to 7.4 million rand from 6.3 million rand in 2012, and overall explosives volumes to mining and quarrying customers were 5.6 per cent higher.
The company’s speciality chemicals segment took the same path by increasing to 8.3 million rand from 7.6 million rand in the previous comparative year.
AECI’s property segment revenue grew to 672 million rand from 400 million rand in 2012, and its group services and inter-segment division grew to 523 million rand from 521 million rand in 2012.
“AECI concluded agreements to dispose of a portion of its surplus property assets at Modderfontein to Shanghai Zendai Property Limited in November 2013. A significant portion of the transaction is expected to be effective during 2014,” the company explained.
Total revenue from all segments was recorded at 15.9 million rand, compared to 13.8 million rand in the previous comparative year.
“AECI’s explosives and mining chemicals businesses are poised for further growth in South Africa in open cast mining, particularly in iron ore and coal, while the narrow reef platinum and gold sectors are expected to remain under pressure owing to weaker commodity prices and escalating costs,” said the company.
“Industrial action will have a negative effect on local markets. Strikes in the platinum mining industry in 2014 have already impacted on AECI’s results in the early part of the year.”