Exxaro Resources Reports Mixed 2024 Financial Results

Exxaro Resources ( (EXXAF) ) has released its Q4 earnings. Here is a breakdown of the information Exxaro Resources presented to its investors.

Exxaro Resources Limited is a prominent South African company operating in the mining sector, primarily focusing on coal production and renewable energy projects. Known for its commitment to sustainability and empowerment, Exxaro is one of the largest black-empowered mining companies in South Africa.

In its latest earnings report for the year ended December 31, 2024, Exxaro Resources reported a 5% increase in revenue to R40.7 billion. However, the company’s EBITDA fell by 22% to R10.4 billion, and attributable earnings per share decreased by 32% to R31.92. Despite these challenges, Exxaro declared a final dividend of R8.66 per share and announced a share repurchase program worth R1.2 billion.

Key financial highlights include a 6% increase in coal revenue driven by higher export volumes, although domestic sales volumes declined due to lower demand from Eskom. The company’s renewable energy segment, Cennergi, generated 725 GWh of electricity, contributing to a 5% increase in energy revenue. Exxaro’s adjusted equity-accounted income decreased by 47%, primarily due to lower iron ore prices affecting its SIOC investment.

Looking forward, Exxaro remains focused on its strategic objectives, including achieving carbon neutrality by 2050 and expanding its renewable energy capacity. The company is optimistic about the potential for economic growth in South Africa, supported by improved investor sentiment and infrastructure reforms. Exxaro plans to continue exploring alternative distribution channels to meet customer demand and enhance shareholder value.