22nd Feb 2016 07:54
LONDON (Alliance News) - Petra Diamonds Ltd on Monday said it was on track to meet production guidance for the full year, but said its revenue had been hit in the first half its financial year due to lower prices for the diamonds it sold.
Petra said its diamond production for the half to the end of December rose 2.0% year-on-year to 1.6 million carats, ahead of its production guidance for the half of 1.5 million carats, leaving the group on track to hit its full year target of 3.3 million to 3.4 million carats.
However, its revenue was down 28% in the half to USD154.0 million, from USD214.8 million, as the price achieved by Petra for its diamonds was down 9.0% on a like-for-like basis in the first half, having fallen around 20% over the 18 months to December. The company's pretax profit was USD100,000 for the period, down from USD58.6 million.
Petra said it had achieved "firm prices" for its diamonds at the first tender of the second half, adding its sales are weighted to the second half due to the seasonal timing of its tenders.
It said no dividends had been declared in respect of the current period.
"Operationally, the company performed well, with both production and our expansion programmes progressing according to plan and in line with our full year targets. Petra's production and sales are weighted to the second half and it is encouraging that we are currently experiencing stable diamond market conditions," said Chief Executive Johan Dippenaar.
By Hannah Boland; [email protected]; @Hannaheboland
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