Petra revenue up 16% to £139m in H1 FY 2015

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Results for six months ended December 2014 show net profit up 37%.

Petra Diamonds Ltd has announced its unaudited interim results for the six months ended 31 December 2014, highlighting a 16% increase in revenue to $21.8m (£139m) and a rise in net profits.

Adjusted EBITDA was up 22% to $84.9m, compared to $69.4m in H1 2014. Similarly net profit after tax was also up 37% to $42.8m.

Operating cashflow increased by 162% to $50.4m, which was set at just $19.2m in H1 2014. However, net debt was down 58% to $45.8m.

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Production was down 2% resulting in 1,601,069 carats, compared to 1,634,576 carats in H1 FY 2014. Costs remained controlled throughout the six month period, with the weaker South African Rand having a positive effect on Petra’s operating costs in US Dollar terms.

Looking ahead, full year production guidance has increased from 3.2m carats to 3.3m carats. Having experienced softer rough diamond market conditions in H1, the company’s first tender of H2 FY 2015 saw good levels of interest and slightly firmer market conditions.

Petra Diamonds chief executive officer Johan Dippenaar, commented: “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 ca. 3.3 million carats for FY 2015 and to ca. 5 million carats by FY 2019.

“While the diamond market remains under pressure, there are encouraging signs that we are seeing a stabilisation in market conditions, as evidenced by good demand levels at our first tender in H2 FY 2015. Our continued growth trajectory and robust financial position places Petra in a good position to capitalise on the attractive medium- to long-term fundamentals for our industry.”

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