JSE-listed diversified energy company Exxaro Resources expects its headline earnings a share for the year ended December 31 to have increased by between 20% and 34% year-on-year, to between R56.20 and R62.75 – primarily owing to the good performance of its coal business, which was driven by higher export and domestic sales prices.
Earnings before interest, taxes, depreciation and amortisation during the period are expected to have increased by between 70% and 84% year-on-year, to between R18.14-billion and R19.63-billion – again mainly as a result of the good performance of the coal business.
The company adds that good cost control also had a positive impact on earnings, despite ongoing logistical challenges.
However, Exxaro’s earnings were partially offset by a lower contribution from its energy business owing to persistent low wind conditions at its wind turbine plants over the past 12 months, as well as the lower income from its equity-accounted investment in Sishen Iron Ore Company.
A share buyback programme also impacted on headline earnings, resulting in a lower weighted average number of shares of 242-million, which was down from 247-million in 2021.
Exxaro will release its reviewed financial results for the period on or about March 16.