17th Mar 2025 15:57
(Correcting the figures for pretax profit)
(Alliance News) - Thungela Resources Ltd reported on Monday it intends to continue buying back its own shares this year, though profit fell sharply due to lower coal prices.
The South Africa-based thermal coal exporter said its pretax profit dipped 31% to ZAR4.99 billion in 2024 from ZAR7.20 billion in 2023. Profit was down 29% to ZAR3.54 billion from ZAR4.97 billion.
Over this period, revenue rose 16% to ZAR35.55 billion from ZAR30.63 billion, thanks to the inclusion of Ensham coal mine. Adjusted earnings before interest, taxes, depreciation and amortisation was ZAR6.26 billion, down 26% from ZAR8.45 billion.
The softer thermal coal price continued throughout the year, Thungela said. Richards Bay Benchmark coal price declined 13% to USD105.30 per tonne on average in 2024 from USD121.00, hurting the group's financial performance.
Thungela said South African export saleable production was 13.6 million tonnes, up 11% from 12.2 million tonnes, exceeding its guidance of between 11.5 million tonnes and 12.5 million tonnes.
In Australia, Ensham recorded strong export saleable production of 4.1 million tonnes, up 52% from 2.7 million tonnes.
Thungela declared a final dividend of ZAR11, down 15% from ZAR13. This brought the total payout to ZAR13, 35% lower than ZAR20.
The company said it plans ZAR300 million share buyback. It repurchased ZAR460 million in 2024, compared to ZAR442 million in 2023.
Earnings per share fell 29% to ZAR26.76 from ZAR37.66, while headline EPS slid 27% to ZAR25.59 from ZAR34.97.
Thungela said its two key life extension projects, Elders and Zibulo North Shaft, remain on schedule and on budget.
In its 2025 production guidance, the group expects production in South African to range between 12.8 million tonnes and 13.6 million tonnes, while Ensham is seen between 3.7 million tonnes and 4.1 million tonnes.
Shares in Thungela rose 7.0% to 492.40 pence on Monday in London. They were up 5.8% at ZAR114.02 in Johannesburg.
By Artwell Dlamini, Alliance News reporter
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