Grindrod expects to bleed red ink in 2015

Diversified South African owner set to recognise impairment loss of $100m in results published next week.

Grindrod is guiding for a negative result in 2015 as it faced “unprecedented” decline in its dry bulk business.

The South African owner is expecting its loss to run to between ZAR 350m ($22.7m) and ZAR 500m for the 12 months to December.

Grindrod had posted a solid profit of ZAR 1bn in 2014 but it will recognise an impairment charge of $100m in its annual report next Thursday.

The company added that a strong performance from its tanker business mitigated the impact of the depressed bulker segment.

Its annual headline earnings are also expected to be around 25% lower, between ZAR 545m and ZAR 580m, compared to ZAR 729.4m in the corresponding period of 2014.

Shares in Grindrod were trading at ZAR 921 on the Johannesburg Stock Exchange today, an increase of almost 4%.

The company owns a diversified fleet of 38 vessels, including bulk carriers and chemical tankers.