Afrox seeks strategic partnership to fortify Joburg hub

Durban – African Oxygen (Afrox) is planning a strategic partnership before the end of the year with an international partner to strengthen its manufacturing hub in Johannesburg.

Managing director of Afrox Schalk Venter said on Friday: “The international partner has the know-how, and this will help us to access higher brand products. The partnership will also help us to sell higher brand products, and we expect the partnership to be finalised by the end of the year.”

In the six months to the end of June, the JSE-listed gas and welding technologies group reported a 10.2% decline in revenue to R2.69-billion, or 7.5% when adjusted for changes in liquefied petroleum gas (LPG) market prices, from lower volumes across all segments related to the Covid-19 lockdown.

However, the company said this was mitigated by a stable healthcare business and the successful recovery of cost inflation, particularly in the atmospheric gases and hard goods segments.

Afrox increased its capital expenditure by 31.3% to 76.5% a share, and basic earnings per share fell 30.5% to 77.8cents, and declared a cash dividend of 38cents, which was compared with 55cents last year.

The company shares closed 5.38% higher at R17.36 on the JSE on Friday.

 

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