23rd Mar 2026 09:45
(Alliance News) - Thungela Resources Ltd on Monday slashed its dividend after swinging to an annual loss amid depressed coal prices and a stronger rand, and warned that ongoing conflict in the Middle East has heightened uncertainty.
The Rosebank-based thermal coal producer suffered a pretax loss of ZAR7.99 billion in 2025, flipped from a profit of ZAR4.99 billion in 2024.
Reflecting weak market conditions, the coal producer booked impairment losses of ZAR8.78 billion, widened from just ZAR278 million.
Revenue was ZAR29.60 billion, down 17% from ZAR35.55 billion, owing to lower coal prices and a stronger rand.
South African operations achieved an average export price of ZAR1,336 a tonne, down 20% from ZAR1,679, while Australian unit Ensham achieved an average export price of ZAR1,877 per tonne, down 17% from ZAR2,274.
Adjusted earnings before interest, taxes, depreciation and amortisation plunged 81% to ZAR1.22 billion from ZAR6.26 billion.
Export saleable production from South African operations rose 1.9% to 13.8 million tonnes from 13.6 million, but export saleable production at Ensham was down 2.0% to 3.9 million tonnes from 4.1 million.
Thungela cut final dividend to 200 rand cents from 1,100 cents, dragging the total payout for 2025 to 400 cents from 1,300 cents.
Loss per share was 5,464 cents, swung from earnings per share of 2,676 cents, while headline loss per share was 647 cents, flipped from headline EPS of 2,559 cents.
Thungela warned that the ongoing conflict in the Middle East, following the US-Israeli attacks on Iran, has raised new levels of uncertainty and has "understandably" caused concern.
"The uncertainty brought about by the conflict has, once again, increased volatility in the energy market, impacting on the price of oil, gas and coal," the company said.
Looking ahead, Thungela expects export saleable production from its South African operations to be between 13.0 million tonnes and 13.6 million in 2026, while Ensham export saleable output is projected between 3.9 million tonnes and 4.2 million.
Shares in Thungela were down 3.6% to ZAR168.88 in Johannesburg on Monday late morning, while they were down 5.9% to 751.00 pence in morning trade in London.
By Artwell Dlamini, Alliance News senior reporter South Africa
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
Thungela Resources