Thungela’s full-year HEPS down 27% on weak prices
Thungela reported a mixed set of results for the 2024 financial year. Revenue at South Africa's largest producer of export coal grew 16 per cent to R35.5 billion and Thungela said export saleable production exceeded its guidance both in South Africa and Australia. The group’s bottom line, however, took a knock from softer coal prices with profit for the period dropping by a third to R3.5 billion. CNBC Africa is joined by July Ndlovu, CEO, Thungela for more.
Mon, 17 Mar 2025 16:39:41 GMT
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AI Generated Summary
- Thungela's revenue grew by 16 per cent to R35.5 billion, driven by strong export saleable production in South Africa and Australia.
- The company faced profit decline due to softer coal prices, but initiatives like cost management and productivity improvements have helped Thungela exceed guidance.
- Thungela remains optimistic about the role of coal in the energy transition, especially in emerging markets, and continues to focus on strategic capital allocation for long-term sustainability.
Thungela, South Africa's largest producer of export coal, reported a mixed set of results for the 2024 financial year. The company witnessed a significant 16 per cent growth in revenue to R35.5 billion, with export saleable production surpassing guidance in both South Africa and Australia. However, Thungela faced challenges due to softer coal prices, leading to a 27% decrease in headline earnings per share. In an interview with CNBC Africa, July Ndlovu, the CEO of Thungela, discussed the company's strategies for overcoming these obstacles and driving future profitability. Ndlovu highlighted the strong productivity improvements and cost management initiatives that have enabled Thungela to outperform expectations. The company's focus on controlling controllables and capital allocation has been instrumental in navigating the volatile market conditions. Ndlovu also emphasized the importance of coal in the energy transition, particularly in emerging markets where demand remains robust. Despite market uncertainties and geopolitical factors impacting gas prices, Thungela remains optimistic about its long-term prospects. As the company continues to invest in key projects and streamline its operations, Thungela is poised for sustainable growth and value creation.
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