Thungela Resources Ltd reported on Monday it intends to continue buying back its own shares this year, though profit fell sharply due to lower coal prices.
The South Africa-based thermal coal exporter said its pretax profit dipped 44% to R 7.20 billion in 2024 from R 4.99 billion in 2023. Profit was down 29% to R 3.54 billion from R 4.97 billion.
Over this period, revenue rose 16% to R 35.55 billion from R 30.63 billion, thanks to the inclusion of Ensham coal mine. Adjusted earnings before interest, taxes, depreciation and amortisation was R 6.26 billion, down 26% from R 8.45 billion.
The softer thermal coal price continued throughout the year, Thungela said. Richards Bay Benchmark coal price declined 13% to $105.30 per tonne on average in 2024 from $121.00, hurting the group’s financial performance.
Thungela said South African export saleable production was 13.6 million tonnes, up 11% from 12.2 million tonnes, exceeding its guidance of between 11.5 million tonnes and 12.5 million tonnes.
In Australia, Ensham recorded strong export saleable production of 4.1 million tonnes, up 52% from 2.7 million tonnes.
Thungela declared a final dividend of R 11, down 15% from R 13. This brought the total payout to R 13, 35% lower than R 20.
The company said it plans R 300 million share buyback. It repurchased R 460 million in 2024, compared to R 442 million in 2023.
Earnings per share fell 29% to R 26.76 from R 37.66, while headline EPS slid 27% to R 25.59 from R 34.97.
Thungela said its two key life extension projects, Elders and Zibulo North Shaft, remain on schedule and on budget.
In its 2025 production guidance, the group expects production in South African to range between 12.8 million tonnes and 13.6 million tonnes, while Ensham is seen between 3.7 million tonnes and 4.1 million tonnes.
Shares in Thungela rose 6.1% to 488.40 pence on Monday in London, and they advanced 6.7% to R 114.99 in Johannesburg.
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