THE BIDVEST Group, having recently built one of the biggest LPG (liquid petroleum gas) facilities in the world at Richards Bay, is to spend another R500 million to establish an inland LPG terminal in Isando, Ekurhuleni, chief executive Mpumi Madisa said.
“This is twice the size of our original ambitions, and we anticipate commissioning towards the end of 2025,” she said in a phone interview at the release of the group’s results for the six months to December 31, 2021, yesterday.
Madisa said the decision to build the Richards Bay facility was at a time of a shortage of LPG gas in SA, and even then the facility was not big enough.
The group now expected demand for its LPG facilities to also increase with the closure of the Sapref oil refinery, which used to produce LPG along with other fuels, she said.
In addition, local demand for LPG gas was being boosted at a time when companies, particularly in manufacturing, and consumers were struggling with the continuity of electricity supply for their operations.
Madisa said the success of the Isando facility, which would provide distribution capacity for the Richards Bay LPG facility, as well as an inland LPG storage facility for the group would depend on Bidvest being able to reach a committed rail agreement with Transnet.
Bidvest’s trading profit grew 24.8 percent to R5.1 billion, with R1bn earned internationally, over the sixmonths ended December 31, 2021.
Headline earnings per share grew 37 percent to 813.8 cents. Interim dividend was raised 31 percent to 380c per share.
A successful maiden issuance of a $800m (R12.11bn) international bond would be used to fund international growth ambitions.
BUSINESS REPORT ONLINE