AECI LIMITED
(Incorporated in the Republic of South
Africa)
(Registration No. 1924/002590/06)
Tax reference No. 9000008608
Share code:
AFE
ISIN: ZAE000000220
Hybrid code: AFEP
ISIN: ZAE000000238
Bond company code: AECI
LEI: 3789008641F1D3D90E85
(AECI or the Company or the Group)
Summarised interim financial results to 30 June 2021, cash dividend declaration and Board
responsibility changes
REVENUE
+5% to R11 802m
Foreign & export revenue: 43% of total revenue
EBITDA
+23% to R1 453m
PROFIT FROM OPERATIONS
+70% to R948m
HEPS
+120% to 529c
GEARING
27% (1H20: 32%)
INTERIM CASH DIVIDEND
180c DECLARED
IMPROVED SAFETY PERFORMANCE
TRIR of 0,36
(0,42 in Dec ’20)
AECI delivered a strong performance for the first half of 2021
(the period). Our results demonstrated the benefits of our
diversity, agility and our strategic pillar structure. This
bolstered our resilience as we recovered very well from the
COVID-19 effects that severely impacted results to 30 June 2020 (the prior corresponding
period).
RECOVERY FROM THE EFFECTS OF
COVID-19
As the world recovered from the initial wave of infection, the
trading environment began to normalise in the second six months of
last year. This improvement trend continued into 2021, albeit that
the recovery has not occurred at the same rate internationally and
across all sectors of activity. Whereas the US and Chinese
economies are on rapid growth trajectories, others are lagging.
South Africa and Europe are among these.
The net asset value per share attributable to ordinary
shareholders decreased by 9% (from 10 537
cents at June 2020 to 9
556 cents in 2021) and basic earnings
per share increased by 117% (from 245
cents in 2020 to 531 cents in
2021). Headline earnings per share (HEPS) was 529 cents or 120% higher than the 240 cents reported last year.
SAFETY
The Total Recordable Incident Rate (TRIR), which measures the
number of recordable incidents per 200 000 hours worked, improved
to 0,36 from 0,42 at the end of last year. A Group-wide programme
to reinforce the focus on holistic wellness and safety was launched
early in 2021. Some key elements of the programme cover people
engagement, behaviour-based safety, risk management and process
safety. Although the benefits of the programme are beginning to
emerge, much work remains to be done.
FINANCIAL PERFORMANCE
All Group businesses were operational in the half-year, unlike
in 2020 when restrictions associated with mitigating the spread and
effects of the coronavirus required some of our businesses and
those of our customers to scale back or suspend their
activities.
In the prior corresponding period, management estimated that the
impact of the COVID-19 pandemic on revenue and profit from
operations was R1 015 million and R454 million, respectively. The
negative effect on HEPS was estimated at 294
cents.
While there was a strong year-on-year recovery, some markets
have yet to return to pre-pandemic levels.
1H21 |
|
|
|
|
1H20 |
|
Revenue
(Rm) |
EBITDA
(Rm) |
Profit
from ops
(Rm) |
HEPS
(cps) |
|
Revenue
(Rm) |
EBITDA
(Rm) |
Profit
from ops
(Rm) |
HEPS
(cps) |
REPORTED |
11
802 |
1
453 |
948 |
529 |
|
11
265 |
1
180 |
558 |
240 |
Restructuring |
|
|
|
|
|
|
92 |
92 |
59 |
Impairment |
|
|
|
|
|
|
|
69 |
|
Net profit from sale
of business |
|
|
|
|
|
|
(108) |
(108) |
|
UNDERLYING EXCL.
COVID-19 |
11
802 |
1
453 |
948 |
529 |
|
11
265 |
1
164 |
611 |
299 |
Estimated net impact
of COVID-19 |
|
|
|
|
|
1
015 |
454 |
454 |
294 |
UNDERLYING |
11
802 |
1
453 |
948 |
529 |
|
12 280 |
1 618 |
1 065 |
593 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% change |
|
|
Revenue
(%) |
EBITDA
(%) |
Profit
from ops
(%) |
HEPS
(%) |
REPORTED |
4,8 |
23,1 |
69,9 |
120,4 |
Restructuring |
|
|
|
|
Impairment |
|
|
|
|
Net profit
from sale of business |
|
|
|
|
UNDERLYING
EXCL. COVID-19 |
4,8 |
24,8 |
55,2 |
76,9 |
Estimated
net impact of COVID-19 |
|
|
|
|
UNDERLYING |
(3,9) |
(10,2) |
(11,0) |
(10,8) |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue increased by 5% to R11 802 million (2020: R11 265
million). Growth was restricted by the key considerations outlined
below and this also affected the improvement in EBITDA and profit
from operations:
- not all mining customers on the African continent have resumed
their operations; some remain on care and maintenance
- four large customers in the oil refining and industrial sectors
did not resume their operations in the period
- last year’s sanitiser order at AECI Schirm did not recur
- the stronger average rand foreign exchange rate against the US
dollar and the Euro
EBITDA of R1 453 million was 23% higher than 2020’s R1 180
million. Profit from operations increased by 70% to R948 million
(2020: R558 million).
Headline earnings increased to R559 million from R254 million in
the prior corresponding period.
Given the progress made by the Company in its recovery from the
effects of COVID-19, the Board has declared an interim ordinary
cash dividend of 180 cents (80%
higher than the 100 cents for the
half-year ended 30 June 2020).
CHANGES IN SIGNIFICANT BOARD
RESPONSIBILITIES
Patricia (Patty) Mishic O’Brien joined the Board as an
Independent Non-executive Director with effect from 1 July 2021. She was appointed in accordance with
AECI’s Board Nomination, Composition and Diversity Policy. She will
also join the Social and Ethics and the Integrated Chemicals
Financial Review Committees from 1 August
2021.
DIVIDEND
Declaration of interim ordinary cash
dividend no. 175
NOTICE IS HEREBY GIVEN that on Tuesday, 27 July 2021, the Directors of AECI declared a
gross interim cash dividend of 180
cents per share, in respect of the six-month period ended
30 June 2021. The dividend is payable
on Monday, 6 September 2021 to
holders of ordinary shares recorded in the register of the Company
at the close of business on the record date, being Friday,
3 September 2021.
A South African dividend withholding tax of 20% will be
applicable to all shareholders who are not either exempt or
entitled to a reduction of the withholding tax rate in terms of a
relevant Double Taxation Agreement, resulting in a net dividend of
144 cents per share to those
shareholders who are not eligible for exemption or reduction.
Application forms for exemption or reduction may be obtained from
the Transfer Secretaries and must be returned to them on or before
Tuesday, 31 August 2021.
The issued share capital at the declaration date is 109 944 384
listed ordinary shares, 10 117 951 unlisted redeemable convertible
B ordinary shares and 3 000 000 listed cumulative preference
shares. The dividend has been declared from the income reserves of
the Company.
Any change of address or dividend instruction must be received
on or before Tuesday, 31 August
2021.
The salient dates for the dividend will be as follows:
Last day to trade cum dividend |
Tuesday, 31 August 2021 |
Ex dividend trade |
Wednesday, 1 September 2021 |
Record date |
Friday, 3 September 2021 |
Payment date |
Monday, 6 September 2021 |
Share certificates may not be dematerialised or rematerialised
from Wednesday, 1 September 2021 to
Friday, 3 September 2021, both days
inclusive.
By order of the Board
WJ Strydom
Acting Group Company Secretary
Woodmead, Sandton
28 July 2021
The full long-form announcement is available at:
https://senspdf.jse.co.za/documents/2021/JSE/ISSE/AFE/hy21.pdf
https://investor.aeciworld.com/s/2021-results-announcement.pdf
The contents of this short-form announcement are the
responsibility of the Board of Directors of AECI. This short-form
announcement is only a summary of the information in the full
announcement and does not contain full or complete details. Any
investment decisions made by investors and/or shareholders and/or
noteholders should be based on consideration of the full
announcement as a whole. Investors, shareholders and noteholders
are encouraged to review the full announcement which is available
on SENS and on AECI’s website. The full announcement is available
for inspection at the registered office of AECI, at no charge,
during normal business hours from 28 July
2021. Copies of the full announcement, at no charge, can
also be requested by contacting the Group Company Secretary: WJ
Strydom, Private Bag X21, Gallo
Manor, 2052, wynand.strydom@aeciworld.com or
groupcommunications@aeciworld.com.
REGISTERED OFFICE
First floor, AECI Place, 24 The Woodlands, Woodlands Drive,
Woodmead, Sandton
SHARE TRANSFER SECRETARIES
Computershare Investor Services Proprietary Limited, Rosebank
Towers, 15 Biermann Avenue, Rosebank, Johannesburg, 2196
Computershare Investor Services plc, PO Box 82, The Pavilions,
Bridgwater Road, Bristol BS99 7NH,
England
EQUITY AND DEBT SPONSOR
Rand Merchant Bank (a division of
FirstRand Bank Limited), 1 Merchant Place, cnr Fredman Drive and
Rivonia Road, Sandton, 2196
DIRECTORS
KDK Mokhele (Chairman), SA Dawson*, FFT De Buck, WH
Dissinger?**, MA Dytor (Chief Executive), G Gomwe?†, KM Kathan
(Executive), PM Mishic O’Brien?‡, R Ramashia, AM Roets, PG
Sibiya
* Australian ** German † Zimbabwean ‡
American
AECIWORLD.COM