JSE-listed AECI expects to report a basic loss a share from continuing and discontinued operations of between R2.41 and R2.95 for the year ended December 31, compared with basic earnings a share from continuing and discontinued operations of R11.12 reported for the 2023 financial year.

Basic earnings per share from continuing operations are expected to decrease by between 77% and 72% year-on-year to between R2.37 and R2.89.

The decrease in basic earnings from continuing operations is attributable to R860-million in non-recurring costs, partially offset by insurance recoveries of R53-million and the anticipated recognition of non-cash impairments of R377-million, mainly relating to AECI Schirm Germany and AECI Mining.

Moreover, from discontinued operations, there is R732-million net of tax of non-cash impairments relating to the fair value loss on the sale of AECI Much Asphalt.

The group also expects headline earnings per share to decrease by between 42% and 32% to between R6.62 and R7.70, from R11.37 for the previous corresponding period.

This is after adjusting for the anticipated recognition of non-cash impairments from continuing operations of R377-million; R732-million net of tax of non-cash impairments relating to the fair value loss on discontinued operations; partly offset by a R44-million surplus on the disposal of investment property, plant and equipment from continuing operations.

AECI expects to deliver stable operational performance with AECI Chemicals expected to report earnings before interest, taxation, depreciation and amortisation (Ebitda) improvement of about 25%, driven by stringent cost controls and increased efficiencies notably in AECI Agri Health and AECI Water.

AECI Mining is expected to report about 13% lower Ebitda – as previously reported, earnings, particularly in the first half of 2024, were impacted by R204-million once off costs which included alternate sourcing of ammonium nitrate solution during planned plant shutdowns.

The AECI Mining Ebitda performance in the fourth quarter of 2024 improved in comparison with the two preceding quarters, as well as the comparative fourth quarter of 2023, owing to a strong performance improvement in Central Africa and Australia-Asia.

This positive performance is expected to continue into the new financial year.

The execution of strategy projects is said to already be contributing towards core business operational performance.

Looking ahead, the group says it will remain focused on executing its transformation strategy to unlock further operational efficiencies; investing in core business areas that drive sustainable earnings growth; finalising divestments and optimising the balance sheet to enhance capital allocation; and reinvesting in asset health to mitigate future business disruption risks.

As previously communicated, this year is expected to reflect continued implementation of these strategic changes, with a focus on portfolio optimisation, operational efficiencies, and reinvestment in core business areas to drive sustainable earnings growth.

AECI will release its results on February 26.