AEL Zambia flags loss in HY20 due to reduced export sales

0
260
  • Earnings per share expected to drop by 55%
  • Drop attributed to reduced export sales

Harare – Lusaka Stock Exchange listed miner, AEL Zambia has issued a negative earnings guidance for the half year period ended 30 June 2020 as a result of reduced export sales.

According to the company, it expects Earnings per Share (“EPS”) for the six-month period ended 30 June 2020 to be approximately 55% lower than for the six-month period ended 30 June 2019.

ASEL highlighted that the movement in EPS is largely attributed to a reduction in material margin from reduced export sales from the corresponding period in 2019, with local sales increasing marginally from the same period in 2019.

For the financial period ended 31 December 2019, turnover stood at K655.052 million from K650.018 million registered in 2018, showing an increase of 0.8% from the revenue recorded in 2018.

The increase was attributed to a devaluation of the currency as compared to the United Stated Dollar, the currency in which the majority of the revenue was being made.

The company also achieved a net income after taxation of K71.239 million in 2019 compared to the prior comparable period in which it recorded K85.909 million.

Meanwhile, foreign exchange gains of K61.529 million K62.981 million in 2018 were recognised and were attributed to the weakening of the Kwacha during year.

AEL mining services is a major producer and supplier of explosives, initiating systems and services in Zambia, providing the majority of products needed by customers in the Central African region engaged in copper and cobalt, underground and surface open pit mining.

The Company expects its results for the six-month period ended 30 June 2020 to be released on or about 25 September 2020.

Equity Axis News

LEAVE A REPLY

Please enter your comment!
Please enter your name here