Petra Diamonds Limited has reported its adjusted pre-tax profits increased to $91.1m (£66.98m) for the six months ending 31 December 2021 (H1 FY22), compared to $6.5m (£4.77m) in H1 FY21 and an overall loss of $18.3m (£13.45m) for the full year in FY21.
However, net profit after tax reduced to $49.1m (£36.1m) from $67.6m (£49.7m) which was impacted by negative non-cash foreign exchange movement amounting to $63.4m (£46.61m).
Meanwhile, revenues were up 49% which was driven by the sale of Exceptional Stones totalling $77.9m (£57.27m), up 92% from $40.4m (£29.7m) in H1 FY21, and a 16% increase in rough diamond prices. Overall, Petra Diamonds’ revenues in H1 FY22 rose to $264.7m (£194.62m), up 47% year-on-year from $178.1m (£130.95m).
Adjusted EBITDA also rose 87% reflecting improved prices, the sale of Exceptional Stones, and Project 2022 cost reductions during the period. Its EBITDA margin rose from 45% to 57% which was “significantly enhanced” by revenues from the sale of Exceptional Stones.
Sales volumes, however, reduced by some 7% compared to the comparative period when higher volumes were sold, mostly off-tender, following the inventory build witnessed late in FY20 after the initial Covid-19 outbreak. Tender volumes and resultant diamond inventories have now reportedly normalised in line with normal tender timings.
Petra Diamonds said its strong performance and considerably improved balance sheet, supported by a robust rough diamond market, has set the company well for the second half of the year.
FY22 production is on track to meet guidance of 3.3 to 3.6 Mcts, and Capex is expected to be at the lower end of the guidance of $78m (£57.35m) to $92m (£67.64m).
Richard Duffy, chief executive of Petra Diamonds, said: “Petra has delivered strong results, growing revenue by 49% and adjusted EBITDA by 87%, as well as reducing net debt significantly.
“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.”