REUTERS

Diversified resources groups Exxaro grew its profit by 40 percent in its financial year ending December 31, it said on Thursday.

Headline earnings per share - a measure of profit excluding certain once-off items - were R7.3 billion or R20.98 a share.

“This represents a 41 percent increase on the comparable 2010 earnings of R5.2bn or 1,495 cents per share,” Exxaro said in a statement.

Revenue increased by 24 percent to R21.3bn compared to 2010.

The increase in revenue was due to higher selling prices for commodities, and was despite lower coal sales and the adverse impact of a strong rand and strong Australian currency.

Exxaro's employee share scheme, MPower, generated R1bn in the last quarter of 2011, to be distributed to beneficiaries.

Employees up to lower management level qualified to be beneficiaries and would share in the R1bn, based on the length of their membership of the scheme.

“Each beneficiary that participated for the full five years of the scheme received a pre-tax distribution of R135,102,” Exxaro said.

“In addition to this distribution, MPower has already paid a total of R81.5 million in dividends to participants.”

The group exceeded its target of 75 percent for HIV/Aids testing of employees in 2011.

Eighty-six percent of employees, including contractors, underwent voluntary testing.

“The HIV prevalence rate is estimated at 12 percent of permanent employees (12.8 percent including contractors) as compared to the industry average of 25 percent,” Exxaro said.

The group declared of a final dividend of 500 cents per share.

Sipho Nkosi, Exxaro's CEO, said the group would place greater emphasis on creating a safe, healthy working environment, after three deaths in 2011.

He expected the group's performance to continue to be affected by currency fluctuations.

“The group's consolidated results for 2012 will continue to be impacted by the trading levels of the local currency and the Australian Dollar against the United States Dollar,” he said. - Sapa