Mr Alan Olivier CEO of JSE listed Grindrod said that it wants to go shopping in the shipping industry. He added that "We are looking for opportunities to make acquisitions in the shipping industry. This weak market gives us the opportunity to grow."
Mr Olivier said that the shipping and freight company had no specific target in sight, noting only that economic conditions were likely to put pressure on some ship owners, creating the opportunity for acquisitions. He noted, for example, that the container shipping industry was bleeding, owing to a sharp reduction in trade brought on by the global economic crisis, with revenue going through the floor.
He estimated that global container movement had contracted by around 25% since the credit crunch infected global markets last year. The tanker market had also seen a reduction in earnings, due to a decline in oil demand and the delay in implementing new refining capacity.
Mr Olivier believed Grindrod was in a good position to take advantage of acquisition opportunities as the company had already positioned itself for a weaker market last year, although he noted that Grindrod had not foreseen the market collapsing as it did in October 2008.
Grindrod generated earnings of ZAR 483.8 million for the 6 months ended June 30th 2009 as compared with ZAR 1.1 billion for the corresponding period last year. Headline earnings a share decreased by 56% to 105.5 cents.
