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| Contribution to headline earnings | 30 June 2024 R million |
30 June 2023 R million |
|---|---|---|
| Air Products | 566 | 476 |
| TotalEnergies | 553 | 54 |
| Wispeco | 289 | 313 |
| PGSI | 17 | 25 |
| 1 425 | 868 | |
Air Products South Africa Proprietary Limited
(Air Products)
Effective interest 50.0%
Profile: Air Products produces oxygen, nitrogen, argon, hydrogen and carbon dioxide for sale in gaseous state by pipeline under long-term contracts to major industrial users. Air Products also distributes industrial gases, together with ancillary equipment, to the merchant market. The other 50% of the ordinary shares are held by Air Products and Chemicals Incorporated, a USA company.
Corporate information
Sustainability measures
| Financial highlights | Year ended 30 September 2023 |
|
|---|---|---|
| R million | % | |
| Revenue | 4 969 | 16.8 |
| Operating profit | 1 386 | 9.5 |
| Headline earnings | 1 012 | 9.4 |
Air Products has a September year-end, but its results for the 12 months ended 31 March 2024 have been included in Remgro’s results for the year under review. Air Products’ contribution to Remgro’s headline earnings for the period under review increased by 18.9% to R566 million (2023: R476 million).
Turnover for Air Products’ 12 months ended 31 March 2024 increased by 17.5% to R5 360 million (2023: R4 563 million), while the company’s operating profit for the same period increased by 19.3% to R1 545 million (2023: R1 295 million).
Air Products is the largest manufacturer of industrial gases in Southern Africa. Additionally, the company imports and distributes a diverse range of speciality gases, catering to various industries such as steel, chemicals, oil refining, resource minerals, glass, pulp and paper, food packaging as well as general manufacturing, fabrication and welding.
The business demonstrated a commendable performance during the period. Demand from large tonnage gas customers in the steel, mining and chemicals sectors was mixed and generally stable. Enhanced cost efficiencies contributed to modest growth in operating profit within this segment. The Packaged Gases business continued to perform well, with volumes remaining robust in the smaller manufacturing and fabrication and food and beverage sectors. Volume growth, a slight reduction in inflationary cost pressures, and a minor acquisition collectively resulted in overall satisfactory outcomes for this segment of the business.
TotalEnergies Marketing South Africa Proprietary Limited (TotalEnergies)
Effective interest 24.9%
Profile: Subsidiary of TotalEnergies SE (France). TotalEnergies’ business is the refining and marketing of petroleum and petroleum products in South Africa, as well as distribution to neighbouring countries. The company holds a 36.36% equity interest in National Petroleum Refiners of South Africa Proprietary Limited (Natref).
Corporate information
Sustainability measures
| Financial highlights | Year ended 31 December 2023 |
|
|---|---|---|
| R million | % | |
| Revenue | 102 889 | 9.0 |
| Operating profit | 3 303 | 10.5 |
| Headline earnings | 2 242 | (11.6) |
TotalEnergies has a December year-end and its results for the 12 months to 30 June 2024 were included in Remgro’s results for the year under review. TotalEnergies’ contribution to Remgro’s headline earnings for the year under review amounted to R553 million (2023: R54 million).
For the 12 months ended 30 June 2024, TotalEnergies’ turnover rose marginally by 0.7% to R101 414 million, up from R100 704 million in 2023. TotalEnergies’ results include negative stock revaluations amounting to R58 million (2023: negative stock revaluations of R1 408 million). The stock revaluations in both periods result from the volatility in the Brent Crude prices. Excluding these stock revaluations, the headline earnings would have increased by 84.0% from R1 230 million to R2 263 million mainly due to Natref’s improved refining results, as well as higher input costs in the comparative year, which was heavily impacted by supply chain challenges experienced on the importation of the fuel products. TotalEnergies has also entered into an agreement to sell its 36.36% minority stake in Natref.
The company remains committed to investing in health, safety, and environmental initiatives to meet increasingly strict regulations and evolving internal needs. Our primary focus areas are ensuring environmental compliance and maintaining high standards for health and safety among staff, transporters, and construction contractors.
Wispeco Holdings Proprietary Limited
(Wispeco)
Effective interest 100.0%
Profile: Wispeco’s main business is the manufacturing and distribution of extruded aluminium profiles used mainly in the building, engineering and durable goods sectors.
Corporate information
Sustainability measures
| Financial highlights | Year ended 30 June 2024 |
|
|---|---|---|
| R million | % | |
| Revenue | 3 759 | (1.4) |
| Operating profit | 382 | (12.4) |
| Headline earnings | 289 | (7.7) |
Wispeco’s turnover of R3 759 million for the year ended 30 June 2024 aligns closely with that of the previous year (2023: R3 813 million). The performance of the aluminium extrusion business was stable with extrusion sales volume being marginally higher than the previous year. In its pressure die casting business, export volumes of brass fire-sprinkler frames were lower for most of the year although showing signs of recovery in the final quarter. Headline earnings for the Wispeco group reduced to R289 million (2023: R313 million) due to sustained downward pressure on trading margins, resulting from generally competitive market conditions. Profitability was further impacted by inflationary cost increases.
Wispeco is the leading aluminium extrusion supplier in Southern Africa. It remains focused on speed of delivery with sufficient manufacturing capacity to sustain short lead times and class-leading customer service levels. It is also a large producer of brass fire-sprinkler frames, all of which are being exported to the USA. New opportunities are being unlocked that hold exciting long-term prospects for growth.
Wispeco is at the forefront of the development of architectural aluminium products supported by unique design software available to its clients. Its Crealco products are backed by extensive technical support and supplied through a wide network of owned and independent distributors across Southern Africa.
Wispeco’s externally focused training initiatives target upskilling of disabled and previously disadvantaged youths, with the aim of finding them employment in the aluminium industry. Internal training programmes focus on productivity improvement and skills development to support future growth.
PGSI Limited
(PGSI)
Effective interest 37.7%
Profile: PGSI holds an interest of 80% in PG Group Holdings. The PG Group is South Africa’s leading integrated flat glass business that manufactures, distributes and installs high-performance automotive and building glass products.
Website: www.pggroup.co.za
