Coal news and updates

South Africa's Exxaro sees lower profit as coal prices cool

Aug 11 (Reuters) - South African coal miner Exxaro (EXXJ.J) expects its half-year profit to fall by as much as 37%, mainly due to weaker prices of the fossil fuel and the impact of rail logistics problems, the company said on Friday.

Exxaro said it expected headline earnings per share (HEPS) - South Africa's most common profit measure - of between 21.58 rand and 26.38 rand ($1.14-$1.39) for the six months ended June 30, down from 34.26 rand during the same period last year.

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Thermal coal prices have retreated from 2022 peaks, when surging demand from Europe fired up coal miners' earnings after a ban was imposed on Russian coal over Moscow's invasion of Ukraine.

Prices have come off because European utilities have significant coal and gas stocks after a milder than expected winter, and have been ramping up renewable energy projects.

Coal companies are seeing sharp declines in profit as a result of lower demand.

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South African coal miners have also been struggling to haul minerals to port due to limited freight rail capacity as state-owned logistics firm Transnet struggles with locomotive shortages, cable theft and vandalism of its infrastructure.

Exxaro's export sales were 6% lower during the first half of this year, compared to the same period of 2022, due to rail challenges.

The company will release its financial results on Aug. 17