JSE- and LSE-listed coal miner Thungela Resources reports that its earnings per share (EPS) for the six months ended June 30 are expected to increase by about 2 044% to between R66.85 and R67.45, from the EPS of R3.13 reported for the six months to June 30, 2021.
During the period under review, Thungela’s headline earnings per share (HEPS) are expected to increase by about 2 101% to between R66.85 and R67.45, from the HEPS of R3.05 reported for the prior comparable period.
As such, headline earnings attributable to shareholders are likely to be about 3 842% higher year-on-year, at between R8.9-billion and R9-billion.
In a trading update, the miner attributes the higher earnings to an increase in revenue driven by the strong benchmark coal price for thermal coal and higher realised prices achieved in the first half of this year.
However, Thungela also notes that its earnings were impacted on by increased operating costs, which have been driven by increased royalty charges and external factors such as rising costs across the energy complex, as well as global inflationary pressures.
Given the strong benchmark coal price forward curve, the miner says earnings have also been negatively impacted on by fair value losses on the price risk management programme undertaken by the group and the capital support agreement.
Further having an impact on earnings is an internal restructure – which was completed on March 31, 2021 – resulting in an impact on financial and non-financial information of Thungela in the prior period.
Thungela expects to release its interim financial results on August 15.