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Explosives and specialty chemicals group AECI expects earnings a share and headline earnings a share (HEPS) for the half-year ending June 30, to be at least 150% higher than the comparative prior-year’s period, on the back of an improved performance by AEL Mining Services.
The group posted HEPS of 108c for the six months ended June 30, 2012.
In the first half of 2012, AEL had to import ammonia and ammonium nitrate at a cost of R35-million, while a planned shutdown of a nitric acid plant, at Modderfontein, led to further buy-ins at an additional cost of R15-million. These costs were not incurred again in the first half of 2013.
The JSE-listed group also attributed the expected improvement in results to the nonrecurrence of the R138-million once-off, non-cash IFRS 2 charge associated with the AECI Community Education and Development Trust.
The trust was established as part of the company’s broad-based black economic-empowerment transactions effected in the prior corresponding period.
AECI’s results for the period were expected to be released on Wednesday, July 24.