19th Feb 2015 08:45
LONDON (Alliance News) - Petra Diamonds Ltd Thursday said it will pay a maiden dividend at the end of the financial year after reporting a rise in earnings and profit during the first half, and said revenue and production will increase during the second half.
For the six months ended December 31, the company reported a rise in earnings before interest, tax, depreciation and amortization of USD84.9 million from USD69.4 million a year earlier after revenue increased, it said.
Petra recorded USD19.6 million in depreciation charges, USD19.5 million in tax expenses, USD3 million in share based and net finance expenses, and a USD3.7 million loss on foreign exchange, leading to a net profit after tax totalling USD39.1 million, up from USD28.4 million in the first half of 2013.
Revenue rose by 16% in the first half to USD214.8 million from USD184.6 million. Petra said revenue increased due to the sale of "two exceptional diamonds" which contributed USD38.7 million in the period.
The company said revenue will be weighted to the second half due to the "seasonal timing" of the company's tenders, suggesting it will increase in the period.
Petra said it has adopted a "progressive dividend policy" and said it will pay a maiden dividend of 2.0 pence per share for the full 2015 financial year.
"In light of the strong outlook for the company and Petra's robust financial position, we have announced our intention to pay a maiden full-year dividend of 2.0 pence, which is a major milestone in the development of our company," said Petra.
Production for the period fell by 2% year on year to 1.6 million carats. However Petra has increased its full year production guidance to 3.3 million carats from its previous target of 3.2 million carats.
Production increased at the company's Finsch, Koffiefontein, Kimberley Underground and Williamson mines in the first half, but this was offset by production falling at its Cullinan mine and lower tailings production at Finsch and Koffiefontein, said Petra.
All of Petra's production comes from Africa, with the mines located in Tanzania, South Africa and Botswana.
Capital expenditure in the first half totalled USD125.2 million, significantly up from USD85.3 million a year earlier, which was "in accordance with the roll out of expansion programmes," said Petra.
"Petra has achieved strong first half results, further to the continued delivery of our growth strategy. Our expansion programmes are on track at all operations, and production is expected to grow to 3.3 million carats for the 2015 financial year, and to 5 million carats by the 2019 financial year," said Chief Executive Johan Dippenaar.
At the end of the period, Petra reported a cash balance of USD129.6 million, with net debt of USD45.8 million.
Petra Diamonds shares were up 3.9% to 181.90 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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