Petra Diamonds realised revenue of $115 million in the six months ended 31 December 2024 (H1 FY 2025), a 30% drop compared to $164 million, a year earlier.
The decline in revenue was largely due to the deferral of 456 000 carats of sales from FY 2023 which were sold in H1 FY 2024.
These were worth about $50 million based on average prices achieved for tender 1 of FY 2024.
It recorded an average realised price of $103 per carat in line with H1 FY 2024, reflecting the positive impact of product mix over the period offsetting the overall weaker diamond pricing environment.
Petra’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) was $15 million during the period under consideration, lower than $38 million in H1 FY 2024, largely due to revenue benefit in H1 FY 2024 outlined above.
“While cash flow from operations improved across the reporting periods from items not impacting EBITDA (capital smoothing and working capital management), 12-month EBITDA was impacted mainly by lower revenue,” said Petra joint interim chief executive officers Vivek Gadodia and Juan Kemp.
“Lower EBITDA over the calendar year 2024 caused Petra not to meet the required leverage and interest cover covenant ratios in its revolving credit facility (RCF) measured on 31 December 2024.”
Meanwhile, Petra said consolidated net debt increased to $215 million as of 31 December 2024 from $193 million as of 30 June 2024 due to diamond market weakness and the timing of their tender sales.
Three tenders took place in H1 FY 2025 and four were scheduled in H2 FY 2025, partially offset by cost control and capital spend profile efficiencies.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
