Exxaro: Half-year earnings to drop on lower coal and iron ore prices

Exxaro, one of the largest South African based diversified resources companies, announced Monday that its headline earnings per share (HEPS) for the six-month period ended 30 June 2023 (HY23) is expected to decrease between 23% and 37% compared to HY22.

The company’s attributable earnings per share (AEPS) is also expected to decrease between 23% and 37% in HY23 compared to HY22, while EBITDA is expected to decrease between 22% and 36%.

In a press release, Exxaro explained that the decrease in earnings at its own managed operations is largely attributable to lower coal sales prices and volumes, compounded by the impact of ongoing logistical challenges.

“Income from our equity-accounted investments at Sishen Iron Ore Company Proprietary Limited and Mafube Coal Proprietary Limited were also negatively impacted by lower prices,” it added.

Exxaro (JSE: EXX) is one of the largest South African based diversified resources companies, with main interests in the coal, iron ore and renewable energy commodities.