HCI expects substantial basic earnings increase, mixed headline earnings

HOSKEN CONSOLIDATED INVESTMENTS LIMITED (JSE:HCI) has released a trading statement indicating a substantial increase in basic earnings per share, projected to be between 8 273.9 cents and 8 354.5 cents. This is a significant rise compared to the previous year's 806.1 cents per share, primarily due to an upward R4 547 million fair value adjustment related to gaining control of an associate through the acquisition of Impact Oil and Gas (“IOG”) in July 2024. Headline earnings per share are expected to be between 1 427.5 cents and 1 572.8 cents, representing a decrease of 1.8% to an increase of 8.2% when compared to the prior year's 1 453.6 cents. The fluctuations in headline earnings are attributed to losses from IOG and Africa Energy Corp. ("AEC"), including an effective R262 million (2024: R483 million) in losses related to AEC, and AEC's US$74 million downward fair value adjustments on its Block 11B/12B prospect. The company expects to publish its full results on or around May 29, 2025.