May 25, 2010

South Africa's Senwes drops in 15% profits

Senwes' profit doubled in the last financial year ended April 30, 2009, but dropped 15% to ZAR 147 million (US$19 million) in the first half of the current fiscal year.

Senwes has a storage capacity of about 4.8 million tonnes at its silos, which handle about 30% of the country's summer grain and oilseeds, including corn and sorghum in a normal agriculture production year. It also stores winter grains such as wheat. The 101-year old company's shares now trade over the counter.

Corn prices in South Africa fell as plantings swelled, creating an estimated record surplus of about four million tonnes. White corn fell 26% to ZAR 1,141 (US$143.26) a tonne in the past six months on the South African Futures Exchange in Johannesburg.

Senwes Ltd., the company that controls more than a quarter of South Africa's grain-storage facilities, said its board decided "in principle" to list on the stock exchange in Johannesburg.

The final decision depends on market and other conditions, the Klerksdorp-based company said without elaborating.