SISEKO NJOBENI

Energy Affairs Editor

OIL and gas company Sacoil Holdings’ chemical manganese processing plant lifted the company’s financial performance in the past financial year, the company said on Friday.

The Greenhills facility, situated in Graskop, Mpumalanga, produces manganese sulphate powder and manganese oxide for the feed, fertiliser and chemical industries.

The plant’s performance was a boost to the company, which had to impair R3m in the form of “pre-acquisition and start up costs” associated with subsidiary Pioneer Coal.

The purpose of the money was to provide Pioneer Coal with seed capital to set up the company as a coal exploration company.

Sacoil attributed the improvement in the plant’s performance to, among other things, “tighter” financial controls, accurate stock recording, an improved ordering system and the regular review of the cost of raw materials.

Sacoil reported headline earnings per share of 0,95c in the year to February, which is an improvement from the 8,65c per share loss last year.

Net asset value — Sacoil’s total assets minus its total liabilities — was 13,83c a share, compared to 13,11c.

The company did not pay dividend.

“The company was able to minimise the lag effect of cost increases to customers through regular reviews of selling prices, thus ensuring that gross margins are increased,” Sacoil said.

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Source: Business Day