Chemicals manufacturer Omnia expects to report earnings a share of between 65c and 130c for the financial year ended March 31.

This represents an improvement of 111% to 121% on the loss a share of 609c reported for the prior financial year.

It is also between 112% and 125% higher than the restated 2019 loss a share of 530c.

Headline earnings a share are expected to increase by between 258% and 275%, from a headline loss a share of 112c for the year ended March 31, 2019, to headline earnings a share of between 177c and 196c for the year under review.

Headline earnings a share are expected to increase by between 282% and 302%, from the restated headline loss a share of 97c for 2019.

Omnia will publish its financial results for the year on or about July 7.

Meanwhile, the company says that, since the start of the Covid-19 pandemic, it has continued to deliver essential services, including primary chemicals and solutions for the agriculture, mining, manufacturing and fuel sectors.

The beginning of Omnia’s financial year is traditionally a quieter time and a number of the group’s plants in South Africa have undergone planned maintenance shutdowns over the past few weeks as a result.

The plants are now operational at the capacities required for the upcoming planting season and the demands of the mining sector. All operations are working in line with lockdown regulations and under strict conditions to reduce the potential for Covid-19 transmission.

Further, Omnia states that it is continuing to implement its turnaround plan and restructuring processes and that, during the 2021 financial year, it plans to focus on creating a sustainable platform for growth, while addressing cost reduction, effectively managing working capital and ensuring a return on capital previously invested.

“Omnia’s prudent cash management strategy and disciplined execution has strengthened its balance sheet and resulted in strong earnings growth,” the company notes.

The Covid-19 pandemic has resulted in revised economic and industry forecasts accounting for the impact on current operations, as well as the uncertainty relating to the trading conditions going forward.

In particular, the fuel sector in which lubricants, oils and chemicals company Umongo Petroleum operates, has experienced increased volatility and risk, resulting in unprecedented forecasting uncertainty. Consequently, a detailed reassessment of projected cash flows and underlying key assumptions resulted in an impairment of R105-million, despite the business generating increased revenue over the past year.

The group’s results include debt restructuring costs of R24-million, retrenchment costs amounting to R22-million, closure of EcoGypsum costing R6-million and a gain on a legal settlement of R14-million.

Meanwhile, Omnia is considering a nonbinding indicative offer for its Oro Agri business.

An engagement process under an agreed exclusivity with the offeror is currently under way.