South African diversified chemical services provider Omnia, reported a slight rise in year earnings on Tuesday, with growth constrained by the ailing mining sector which has been hobbled by falling prices.
[DATA OMN:Omnia] said headline earnings per share, the main profit measure in South Africa, inched up 2.6 percent to 14.65 rand in the year to the of March.
The company said revenue rose 3.5 percent to over 16.8 billion rand ($1.38 billion), which it said was “based on an improved performance by the agriculture division which was offset by weaker performances by the mining and chemicals divisions due to a general slowdown in both sectors.”
“The short- to medium-term outlook for commodity prices remains weak and will most likely lead to further contractions over the next few years in the mining industry, which is a key market in which Omnia operates,” Omnia said.
Omnia said its agricultural division, by contrast, performed well, driven in part by the company’s high-margin specialty products business.
The company offers highly technical services in the sector which include “precision agriculture” methods that allow farmers to collect precise data about their fields, allowing them to make the best use of the fertilizers that Omnia also sells.