Market conditions dampen Afarak’s first-half profit
London-listed Afarak Group has reported a decrease in material processed for the first half of this year to 11 922 t, compared with the 12 855 t of material processed in the first half of last year.
The group’s earnings before interest, taxes, depreciation and amortisation decreased from €15.1-million in the prior comparable period to €4.2-million in the six months under review, while the margin also decreased from 15.8% to 5.9% over the same period.
Afarak generated a profit of €500 000 in the first half of this year, compared with a profit of €10.5-million in the first half of last year. Cash flow from operations totalled -€5.4-million, compared with positive cash flow generation of €8.3-million in the prior comparable period.
The group has speciality alloy operations in South Africa, Türkiye, Germany, London, Helsinki and Malta.
CEO Guy Konsbruck attributes the company’s weaker financial performance to very difficult business conditions, particularly low ferrochrome prices.
He explains that low-carbon ferrochrome prices were under pressure owing to the presence of massive inventory of Russian material and low-cost imports from India.
The efficiency of Afarak’s operations, however, provided some buffer to protect its profitability, he added.
Konsbruck says sanctions against Russian ferrochrome material will only be fully implemented by the end of this year, which should bode well for Afarak’s supply.
He foresees increased demand in the aeronautics and defence industries for the remainder of the year, as well as improvements in the group’s cost structure.
Comments
Research Reports
Projects
Latest News
Showroom
Goodwin Submersible Pumps Africa is sole distributors for Goodwin electrically driven, submersible, abrasion resistance slurry pumps.
VISIT SHOWROOM
AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
