5 days ago
Thungela flags profit plunge on weak thermal coal prices
Thungela Resources expects its half-year profit to fall by as much as 85%, mainly due to lower thermal coal prices as global economic uncertainty affects energy demand, the coal miner said on Friday.
Thungela said it expects headline earnings per share (HEPS) to be between R1.40-R2.10 in the six months to June 30, compared to R9.52 during the same period last year.
Thungela is South Africa's biggest thermal coal exporter and along with peers it has been forced to cap output to match limited freight rail and port capacity provided by Transnet. Thermal coal demand has also slowed in key markets China and India after increases in domestic coal production.
Average coal prices through Richards Bay were 14% lower during the six months compared to last year as tariff-induced instability in global trade affects major economies and energy demand.
The average export price in Australia, where Thungela owns the Ensham mine, was 11% lower compared to the same period last year, it said.
Thungela said it also incurred R285m in restructuring costs related to its Goedehoop and Isibonelo operations which reach the end of their lives this year.
The company will release its half-year results on August 18.
