South African coal producer Thungela Resources said on Monday that its half-year profit more than doubled, supported by higher thermal coal prices and increased export sales as the Middle East conflict disrupted global energy markets.
The company’s headline earnings per share rose to 4.80 rand ($0.2972) for the six months ended June 30, compared with 1.92 rand during the same period last year.
Benchmark coal prices increased by 15 per cent in South Africa and 25 per cent in Australia, where Thungela operates mines, supporting the company’s financial performance.
Revenue rose to 15.2bn rand during the period, up from 14.8bn rand in the corresponding period last year.
Thungela’s export sales also increased by 12 per cent to 9.5 million metric tonnes.
The company attributed the increase to improved freight rail logistics in South Africa and strong production at its Ensham mine in Australia.
Improved logistics enabled Thungela to move more coal for export from its South African operations, while stronger output from Australia supported overall sales volumes.
The rise in coal prices came as disruptions and uncertainty in global energy markets increased demand for alternative energy supplies.
The company said it would pay an interim dividend of 5.50 rand per share, more than double the 2 rand per share paid previously.
The stronger dividend reflects the improvement in Thungela’s earnings and cash-generating capacity during the first half of the year.
The performance highlights the impact of higher thermal coal prices on producers as global energy markets remain sensitive to geopolitical tensions and supply disruptions.
