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Shares in Omnia Holdings jumped 3% in early trade on Monday after the group said it expects its full-year earnings to rise as much as 23%.The group said in a trading update on Monday that total HEPS for the year ended March is expected to increase by between 17% and 23% to between 824c and 866c.Total EPS is expected to increase by between 21% and 27% from a year ago.Omnia, which is valued at R16.7bn on the JSE, attributed the higher earnings to the ongoing successful execution of its strategy, strong cash generation and an enhanced financial performance.It had a net cash of R1.68bn as of the end of March.Omnia said the results for the year may be affected by adjustments resulting from the year-end closure process, which may result in a change in these estimates. If necessary, a further trading update will be issued.It will release its annual results on June 8.At 9.30am on the JSE, Omnia’s shares were up 2.9% at R103, taking its gains for the year to date to 26.8%.The rally comes at a time when Omnia has clear exposure to the risks of the war on Iran, with the firm operating in the sectors that have been, and will continue to be, most directly threatened by the effective closure of the Strait of Hormuz.As one of South Africa’s biggest producers and suppliers of fertiliser, the group is heavily exposed to sulphur prices, with much of the world’s supply of sulphur arising from the Middle East. The same is true for ammonia, an essential ingredient in the explosives that Omnia supplies to the local mining sector.Dependence on ammoniaShortly after the outbreak of the Iran war, Omnia told Business Day that it was closely monitoring the effects of the conflict on global commodity prices and supply, adding that it had “already taken extensive measures to ensure uninterrupted supply” to its customers in all sectors.The group’s plans included investing in logistics and storage facilities while reducing the dependency on ammonia for explosives.Business Day reported earlier this month that the chemicals, explosives and fertiliser group has received a big vote of confidence in the wake of recent Middle Eastern conflict as investors bet on the group’s ability to shrug off the supply shocks and jitters that have battered broader equity markets.South Africa’s state-owned Public Investment Corporation increased its stake in the group to more than a fifth, from 17.78%, in March 2024, after steadily increasing its holding in recent months. With Jacob WebsterBusiness Day
