Exxaro warns shareholders to expect disappointing 2024 earnings amid cost pressures
JSE-listed Exxaro Resources has warned shareholders that its headline earnings per share for the year ended December 31, 2024, are expected to have decreased by between 30% and 44% year-on-year to between R26.21 and R32.76.
Likewise, attributable earnings per share for 2024 are expected to have decreased by between 26% and 40% year-on-year to between R27.99 and R34.52.
Earnings before interest, taxation, depreciation and amortisation (Ebitda) for the year are also expected to have decreased by between 16% and 30% year-on-year to between R2.14-billion and R4.02-billion.
Exxaro said that, while it expects to report improved revenue, that was offset by cost pressures, including inflation; higher selling and distribution costs owing to the use of alternate distribution channels; and increased operational and maintenance cost, primarily driven by higher volumes of overburden.
Exxaro said it anticipated reporting a stable contribution from its energy business in 2024, supported by consistent wind conditions compared with 2023.
However, the financial performance of the company’s equity-accounted investments was expected to show a decline year-on-year, particularly in Sishen Iron Ore because of lower iron-ore prices and sales volumes, and in the Mafube coal mine, owing to lower export prices.
Exxaro will release its 2024 year-end financial results on March 13.
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