Exxaro expects massive half-year earnings decrease

Coal mining giant Exxaro informed shareholders this afternoon that it expects its headline earnings per share (HEPS) for the first half of 2023 to decrease by between 23% and 37%.

“Shareholders are advised that Exxaro and its directors have a reasonable degree of certainty relating to the expected financial results of Exxaro for the six-month period ended 30 June 2023,” the company announced today.

The company expects its HEPS for H1 2023 to decrease between 23% and 37% compared to H1 2022. 

It also expects its attributable earnings per share (AEPS) to decrease by between 23% and 37%. 

EBITDA for H1 2023 is expected to decrease between 22% and 36% compared to the previous year. 

“The decrease in earnings at our own managed operations is largely attributable to lower coal sales prices and volumes, compounded by the impact of ongoing logistical challenges,” Exxaro said. 

“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.” 

Exxaro will release its reviewed financial results for the six-month period ended 30 June 2023 on or about 17 August 2023. 

Below is a summary of Exxaro’s earnings expectations: