Trencor lifts interim earnings by 21,3%

16 August 2013

Trencor Ltd which has a 48,4% beneficiary interest in New York-listed Textainer Group Holdings Ltd, the world’s largest lessor of marine containers, reported headline earnings per share for the six months to 30 June 2013 of 318,1 cents, up from 262,3 cents in the corresponding period in 2012.

Neil Jowell, Trencor’s executive chairman, said the company’s adjusted headline earnings per share were 264,5 cents (2012: 256,7 cents), an increase of 3%. This excluded the effect of net unrealised foreign exchange translation gains and losses.

Trading profit, which is earned mainly in US dollars, after net financing costs, increased by 29,7% from R777 million in 2012 to R1 008 million.

An interim dividend of 72 cents per share (2012: 65 cents) was declared. This follows the special gross dividend of 360 cents per share paid on 29 April 2013.

Mr Jowell said Trencor’s net asset value per share on 28 June 2013 was R69,22. This value was based on the spot exchange rate of R9,95/US$ and the price of US$38,44 per Textainer share on the NYSE.

He said Textainer’s net profit for the half year, adjusted to conform with International Financial Reporting Standards, was US$100,8 million (2012: US$97,3 million).

Textainer’s average fleet utilisation to 30 June 2013 had dropped to 95,1% (2012: 97,2%). Textainer had acquired more than US$494 million in new and used containers in the first six months of the year.

Total fleet under management at 30 June was 2 860 000 TEU (twenty foot equivalent units) of which Textainer itself owned 74,0%. This compared with 60,4% ownership of 2 615 000 TEU at the interim stage in 2012.

Mr Jowell said Textainer and Trifleet Leasing (The Netherlands) B.V. had entered into an agreement under which Textainer will invest in new intermodal tank containers to be managed by Trifleet. Trifleet will acquire and lease the containers on behalf of Textainer, serving as its exclusive manager in the intermodal tank container market. This marked Textainer’s entry into the market for tank containers used for the transport and storage of liquid foodstuffs, chemicals and gases.