African Oxygen Limited (Afrox) has again reported solid interim financial results with revenue at 3.3bn rand and core headline earnings reaching 124.4cents, after growing demand for the company's products.
The interim results for the nine months ending 30th June 2007, reflect a change in the financial year to 31st December following the acquisition of the majority shareholding in Afrox by German industrial gases and engineering firm The Linde Group.
The Afrox board has declared an increased interim cash dividend of 54.0 cents per share, 12.5 percent higher than the previous interim dividend. During the nine month period, the results show net profits of 362m rand, with the balance sheet remaining strong and gearing at an acceptable level of 24.5 percent.
The news is seen as a positive indication for future revenue and developments which will see the company move further forward. This is explained by Afrox managing director Tjaart Kruger, as he says, $quot;The company embarked on an extensive capital expenditure programme which was initiated in 2006, the full benefit of which will be realised in the 2008 financial year.$quot;
At present, the company has 3 plants commissioned including liquefier plants at Afrox in Pietermaritzburg and Scaw Metals in Wadeville and one customer on-site air separation plant at Xstrata in Lydenburg. Afrox has also boosted its stocks of cylinders and commissioned a new 3,600 ton LPG importation and storage facility at Richards Bay.