Exxaro results
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Despite serious headwinds, both on the Covid-19 and coal fronts, Exxaro Resources turned in a stellar first half performance pushing up export sales by 39% and backing that up with higher off-take from Eskom.
The end result was that thermal coal sales rose 10.7% to 22.8 million tons, which flowed through to an 18% rise in total revenue of R14.1bn, and an 11% increase in core headline earnings to R13.39/share, and the consolidation of energy revenue relating to Cennergi from April
CEO Mxolisi Mjogo spoke to Michael Avery about how the coal major responded when the massive Indian market said they were not taking the coal for international export due to Covid; whether the Cennergi EBITDA margin of 80%, is this sustainable; and the early value strategy and how we the market should reconcile that with the dearth of expansion capex over the next few years that Exxaro outlined.
The end result was that thermal coal sales rose 10.7% to 22.8 million tons, which flowed through to an 18% rise in total revenue of R14.1bn, and an 11% increase in core headline earnings to R13.39/share, and the consolidation of energy revenue relating to Cennergi from April
CEO Mxolisi Mjogo spoke to Michael Avery about how the coal major responded when the massive Indian market said they were not taking the coal for international export due to Covid; whether the Cennergi EBITDA margin of 80%, is this sustainable; and the early value strategy and how we the market should reconcile that with the dearth of expansion capex over the next few years that Exxaro outlined.
