Omnicane reports poor results

Omnicane’s operating profit for the quarter ending 31 March 2018 decreased by Rs 120 million, mainly due to the operation stoppage of Line 2 (installed capacity of 45 MW) of the La Baraque power plant. The rotor alternator of this line was damaged during a thunderstorm in early February 2018 and is currently being repaired overseas.

The impact of this incident will be mitigated by insurance cover for loss of profit. According to Omnicane, the sugar price is still under pressure, particularly in Europe, its main market. A series of discussions are being held with the authorities for bold measures to be taken to improve the financial situation of the cane industry. The La Baraque power plant is expected to be back to normal operations in June 2018.

The Mon Trésor Smart City development is progressing well, the Omnicane HQ building, shell and core is now completed and is being fitted out in the Business Gateway. The Freeport infrastructure for phase 1 over 3 hectares is presently under construction. The feasibility study of the film studio with Babelsberg is at an advanced stage and road shows with potential financiers augur well for the future.