Disappointing second half of the year for Hulamin
Hulamin managed to turn a decent first half into a poor full year result. The company experienced a subdued start to the year with the country in its second wave of COVID-19 infections, which resulted in further lockdown restrictions.
Following their lifting during the first quarter and the need to implement plant upgrades and execute biennial equipment maintenance, the go-ahead was given for a 12-day maintenance shutdown that was successfully completed in late-March 2021.
The subsequent improvements laid the foundation for further operational performance enhancements that have continued through to the fourth quarter. The business continues to ramp up to full operational capacity.
Hulamin achieved sales volumes of 102 000 tonnes in the first half of 2021 and expects the second half volumes to exceed those. This is despite the widespread public unrest resulting in a 6-day plant closure in July and the subsequent and widely published Transnet cyber-attack that disrupted Durban port operations for approximately 7 days in July.
Both major operating divisions, namely Hulamin Rolled Products and Hulamin Extrusions, have performed well in 2021 with Hulamin Rolled Products benefitting from firm demand in most markets, stable and improving plant performance, a rising London Metal Exchange aluminium price and a weaker currency in the second half of the year. Earnings in both divisions are expected to be supported by metal price lag profits.
