On 25 February 2019, OM Holdings Limited (ASX: OMH) announced a report of its financial performance for the financial year ended 31 December 2018 wherein it reported a strong profit after tax (NPAT) of A$184.7 Mn for FY 2018 as compared to net profit after tax of A$91.4 Mn for FY2017. However, the group’s revenue from operational activities for FY2018 was A$1.51 Bn, representing a 53% rise over the prior year. This increase was due to higher tonnages of ores and alloys trade and continued robust manganese ores and ferroalloy prices in FY2018.
The company reported 82 % increase in its earnings before interest, tax, and depreciation (“EBITDA”) to A$339.7 Mn for FY2018 compared with A$186.1 Mn for FY2017. This was due to higher volumes of production and trading, supported by robust commodity prices over FY2018.
The strong production attributes to Group’s Australian subsidiary, OM (Manganese) Ltd (“OMM”) achieving its full mining operations for the entire 2018 year, and its 75% owned smelter, operated by OM Materials (Sarawak) Sdn. Bhd. (“OM Sarawak”), commissioned its final 16th furnace producing ferrosilicon (“FeSi”) on 1 June 2018.
Its basic and diluted earnings per ordinary share were reported at 22.05 cents and 21.79 cents respectively for FY2018 as compared to 12.67 and 12.06 cents for FY2017. Group’s total borrowings to equity ratio decreased to 1.14 times as on December 31, 2018, as compared to 1.77 times as on December 31, 2017. Its gross profit margin improved to 23.3% in FY2018 up from 21.2% in FY2017.
The company’s consolidated cash position was reported at A$91.8 Mn (including cash collateral of A$12.8 Mn) as on December 31, 2018, as compared to A$34.4 Mn (including cash collateral of A$4.5 Mn) as on December 31, 2017. Its record net cash generated from operating activities was A$179.6 Mn for FY2018 as compared to A$133.8 Mn for FY2017. Group’s net asset backing per ordinary share of the Company stood at 61.24 cents in FY18, displaying 56% rise over the prior year.
The significant sustainable performance in the group’s operations and surplus cash flow generated for FY2018 has resulted in the Board's resolution to declare a final dividend of A$0.02 per fully paid ordinary share for FY2018. The record date for the dividend has been marked on 3 May 2019, and the payment date on 31 May 2019. This final dividend will be in addition to the interim dividend of A$0.03 per fully paid ordinary share declared and paid with respect to the half year ended June 30, 2018.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the last few months. The stock is currently trading at a price of $1.370, up by 0.735 % during the day’s trade with the market capitalization of ~$1 Bn as on 25 February 2019. The stock has provided a year till date (YTD) return of 8.80% & also posted returns of -2.16%, 3.42% & 1.49% over the past six months, three & one-months period respectively. It had a 52-week high price of $ 1.70 and touched 52 weeks low of $ 0.950, with an average volume of ~ 200,055.
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