Preliminary stats shows 20% rise in revenue and 17% production boost.
Petra Diamonds Limited has announced its preliminary, unaudited results for the year ended June 30 2014, pointing to a 20% rise in revenue to US$471.8 million (£289.2m) and a staggering 75% boost in net profit after tax to US$93.7 million (£57.4m).
According to the report, revenue rose 20% to US$471.8m (£289.2m) compared to US$392.5m (££240.6m) in 2013, with EBITDA up 47% to US$187.7m (£115m).
Net profit after tax soared by 75% taking the total from US$53.6m (£289.2m) to US$93.7m (£57.4m). Additionally, operating cashflow rose by 36% to US$181.2m (£111m) and earnings per share (EPS) hiked from 11.34cents (0.6p) per share to 14.82 (0.8p).
Petra saw a 17% increase in production over the course of the year to 3,110,823 carats, ahead of market guidance of three million carats. Operating costs remained tightly controlled, with capital expenditure of US$211.2m (£129m) in accordance with the group’s expansion programme.
The company’s safety report also improved with its Lost Time Injury Frequency Rate dropping to 0.32 from 0.67 in 2013.
Petra has increased its production forecast to 3.2m carats for the full year 2015, with expansion plans in place to increase this figure to 5m carats by 2019.
Following the publication of its end of year results, Petra announced the sale of its 122ct blue diamond recovered at its Cullinan mine in South Africa, valuing the stone at US$27.6m (£16.9m). The company will record the income in Q1 2015 and will receive a 15% share in the net proceeds of the polished yield.
Petra Diamonds chief executive officer Johan Dippenaar said of the results: “FY 2014 was another year of steady progress for Petra, with production, revenue and the underlying profitability of the Group rising in line with our expectations. Longer-term, further to the delivery of our growth plans, the Group remains on track to reach annual production of 5 million carats by FY 2019.
“Petra’s production growth comes at a time when demand for diamonds is continuing to grow around the world, but particularly in the major US market and in emerging markets such as China and India.
“There is subsequently a positive outlook for the Company, particularly given our expectations for further increases in production, rising margins, supportive rough diamond prices, and the continued contribution of exceptional diamonds. We look forward to entering a period of significant cash generation and the commencement of dividend payments to our shareholders in due course.”