Diversified resources company Exxaro Resources has warned shareholders that it is likely to report a 16% to 30% year-on-year decrease in headline earnings per share (HEPS) for the year ended December 31.
HEPS are likely to be between R42.11 and R50.63, compared with the HEPS of R60.16 reported for the 2022 financial year.
Earnings before interest, taxes, depreciation and amortisation for 2023 are expected to have decreased by between 23% and 37% to between R11.97-billion and R14.63-billion, from R19-billion the year before.
Exxaro attributes the decreases in earnings to lower export sales prices realised, which were partially offset by higher prices achieved in the domestic market, along with the impact of a weaker rand:dollar exchange rate at the company’s coal operations.
However, Exxaro expects a higher contribution from its energy business owing to improved wind conditions compared with 2022, as well as higher income from the company’s equity-accounted investment in Sishen Iron Ore.
The company’s results will be published on or about March 14.