Petra Diamonds' revenue increased 49% to $264.7 million in the first half of the fiscal year 2022 compared to $178.1 million, a year earlier driven by the sale of exceptional stones totalling $77.9 million.
One of the exceptional stones sold is a 39.34 carat blue diamond from the Cullinan mine that was bought for $40.2 million.
The first half revenue also benefited from realised diamond prices on a like-for-like basis being up about 16% compared to the preceding six-month period to 30 June 2021.
Sales volumes reduced by some 7% compared to the comparative period when significantly higher volumes were sold, mostly off-tender, following the inventory build witnessed late in the fiscal year 2020 after the initial COVID-19 outbreak.
Petra also said that its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) grew 87% reflecting improved prices, the sale of Exceptional Stones, and Project 2022 cost reductions during the period.
EBITDA margin rose from 45% to 57% significantly enhanced by revenue from the sale of Exceptional Stones, which may not be repeated at a similar level in future reporting periods.
The company’s adjusted profit before tax also rose to $91.1 million compared to $6.5 million, a year earlier.
However, its net profit after tax dropped to $49.1 million during the period under review from the previous year’s $67.6 million due to negative non-cash foreign exchange movement amounting to $63.4 million.
“We have benefitted from the recovery in rough diamond prices, record proceeds from the sale of Exceptional Stones, and the improvements we have made in our operations, resulting in significantly improved safety levels, profitability and cash flow,” said Petra chief executive Richard Duffy.
“Our strengthened operating platform and balance sheet coupled with the robust rough diamond market sets us well for the second half of the year and we are well on track to meet FY 2022 operational guidance.”
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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