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South Africa: Outages Generate Profit for Austro
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Business Day (Johannesburg)
15 May 2008
Posted to the web 15 May 2008
Siseko Njobeni
Johannesburg
POWER outages and demand for alternative power supplies have driven up generator sales and the financial performance of generator rental and supply group Austro, the company said yesterday.
Austro (ASO) is among the companies that have benefited from the shortage of electricity supply that has gripped SA . The power supply instability resulted in a demand for generators as households and businesses looked for back-up means for power.
With Eskom's first new coal-fired power station only likely to begin producing energy in 2012, companies such as Austro are banking on a surge in generator sales in the next few years.
Following the release of its interim results for the six months to February , Austro said the recent acquisition of Neptune Plant Hire, which hires out generators and related equipment to businesses, was poised for growth.
Neptune is due to open another branch in Gauteng.
"Being able to offer reliable alternative power solutions at short notice has been a key factor in Neptune's success. Expectations and prospects from the new Johannesburg branch look extremely good," Austro CEO Robert Friese said yesterday.
Austro reported a 257% increase in after-tax profit, from R13m in the previous period to R47m.
Headline earnings per share increased by 181% from 3,9c per share to 10,9c per share.
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The group also recently acquired Quinlec Electrical, which manufactures, sells and leases generators. "The intention is to use the Quinlec acquisition as a platform for further growth in KwaZulu-Natal," Austro said.
Disasters, Hurricanes, Ice Storms, Wind Storms. We’ve all seen the after-effects, entire communities without power. It’s reported that on average 3.5 million people lose their power in the US each week! We bought a generator from MainPowerConnect.com that now ensures our family has the power needed when faced with unexpected outages. With Standby Power, our home and business stays warm, secure systems stays armed and well lighted. With our generator the sump pumps keep running protecting us against flooding and keeping our food cold and fresh.
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