Company says the global resources sector showed some recovery in 2016, but the longer-term sustainability of improved conditions in the sector remains uncertain.
The company sold parcels of land in Somerset West in the year-earlier period, which added R2.95 to HEPS.
Group revenue was up just 1% to R18.59bn while profit from operations declined 22% to R1.33bn.
AECI operates out of two main divisions: speciality chemicals; and explosives.
Profit from operations in the speciality segment was up 8.3% to R1.21m as revenue rose 9.1% to R10.78bn.
The increase in revenue in this speciality division was driven by higher prices as a result of the weaker average rand exchange rate to the dollar and the benefits of the acquisitions finalised in 2015.
Profit from operations in the explosives division rose 7.4% to R449m, which was off revenue of R7.97bn.
"Although the global resources sector showed some recovery and overall commodity prices increased in the latter part of 2016, volatility persisted and the longer-term sustainability of improved conditions in the sector remain uncertain," the company said in a statement.
"Growth in SA’s manufacturing sector was negligible and the agricultural sector in a number of southern African countries remained constrained
by the effects of the drought for most of the year."
AECI declared a final dividend of R3 per share, which was 15% higher than the year-earlier period.
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