South African coal company has announced a improved half-year profit of ZAR 2.2 billion on the back of higher coal sales, a 34% year-on-year increase, on coal revenues up 18% at ZAR 9.7 billion.
Coal sales hit 22 million t for the six months to June, a year-on-year increase of 9% on the back of 2 million t of production from the former Total Coal South Africa mines – now known as Exxaro Coal Central (ECC).
Profit from the company’s sales of coal from its “commercial operations” – as opposed to its “tied” mines that supply South Africa state utility – was ZAR 2.1 billion. That is up 35% on the previous year. Profits from coal sales to Eskom grew 10% but from a much lower base, totaling ZAR 122 million.
Looking ahead, the company said it expected to see a continued improvement in its coal units performance on the back of more stable trading conditions in domestic markets, the positive impact of ECC operations on coal output, improving thermal coal price outlook and an increase in sales from the Grootegeluk and Matla mines.
“We expect that 2H16 domestic thermal volumes will remain at current healthy levels,” the company said. “Export markets depend heavily on demand from India for lower-quality coal products, while pricing is expected to remain flat. Further growth is expected in the African, Pakistani and southeast Asian markets and the company is well positioned with a strong product mix to supply these markets.”
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/mining/19082016/exxaro-release-positive-2h16-results-2016-2274/