JSE-listed mining and chemicals company AECI said in a trading statement on July 23 that it expects to report a 24% year-on-year increase in earnings before interest, taxes, depreciation and amortisation (Ebitda) from continuing operations for the six months to June 30.

This is mainly driven by an about 14% increase in AECI Mining’s Ebitda, with the growth primarily driven by improved margin performance in the international business, partially offset by operational challenges at the Modderfontein facility relating to power interruptions and security of supply.

The six-month period to end June 2024 had included R204-million in statutory shutdown costs, AECI notes.

Additionally, AECI Chemicals is expected to report an approximately 32% year-on-year decrease in Ebitda, mainly resulting from the recognition of expected credit losses of about R113-million, as well as operating in a challenging trading environment.

Further, AECI Property Services and Corporate saw an approximately 59% improvement in its Ebitda loss, and the division's prior period result was impacted by one-off expenditure related to strategy execution, AECI said.

The company expects group earnings per share (EPS) to be 23% to 29% higher year-on-year at between 287c and 301c. EPS from continuing operations are expected to be 66% to 74% higher at 301c to 315c.

Group headline earnings per share (HEPS) are expected to be 129% to 136% higher at 595c to 613c.

Discontinued operations are expected to report a basic loss a share of between 11c and 17c a share.

Net finance costs from continuing operations are expected to decrease by about 36%, and the effective tax rate is expected to be within the previously guided range of between 40% and 45%.

AECI expects profit from continuing operations to decrease by about 6%, mainly driven by the recognition of about R320-million in impairment charges and other capital items related to the portfolio optimisation.

This arose mainly from an impairment charge following the classification of the Food & Beverage Business to held for sale, and the impairment on the disposal of Baar-Ebenhausen. The disposal is subject to customary regulatory and other closing conditions and is expected to be finalised in the second half of the year.

“While these are not impacting cash balances negatively, they are reflective of the strategic repositioning of the company to create long-term shareholder value,” AECI said in a statement.