Petra Diamonds revenues jump 44% to $406.9m

Petra Diamonds has announced its revenues grew 44% year-on-year from $406.9m (£347.5m) to $585m (£499.6m) for the year ended 30 June 2022 (FY22).

This comprises revenues from rough diamond sales of $584.1m (£498.8m) and additional revenues from profit share agreements on partnership stones of $1.1m (£939k).

The increase in revenues from rough diamond sales was driven by a 41.5% increase in year-on-year like-for-like prices, and the contribution from the sale of a “record” number of Exceptional Stones of $89.1m (£76.09m)

Pre-tax profits also surged 875% from a loss of $18.3m (£15.6m) in FY21 to $141.9 (£121.19m) in FY22, and Petra doubled adjusted EBITDA from $130.2m (£111.2m) to $265m (£226.3m) which is up 103%.

Additionally, the board has approved a dividend policy targeting an ordinary dividend within the range of 15%-35% of adjusted free cash flows after interest and tax and having adjusted for any windfall earnings.

Petra also announced its intention to reduce its gross debt through a tender offer to bondholders to purchase $150m (£128.1m) of the Senior Secured Second Lien Notes due in 2026, in line with Petra’s intent to further optimise its capital structure through a reduction of gross debt.

If completed, the transaction will see Petra saving up to $15m (£12.8m) per annum in interest expenses.

Richard Duffy, CEO of Petra, said: “We are delighted with our overall performance, which caps the turnaround begun three years ago. Our continued focus on safety has supported a 48% improvement in our LTIFR. Additionally, sustainability is being integrated across our business through the implementation of our new Sustainability Framework.

“Project 2022, now concluded, has delivered $265m (£226.3m) in net free cash over its three years, contributing to our record financial results for FY22.”

He added: “The diamond market remains broadly supportive as a result of the prevailing structural supply deficit, although ongoing macro-economic uncertainties may lead to some volatility in the short term.”

source https://www.jewelleryfocus.co.uk/206966-petra-diamonds-revenues-jump-44-to-406-9m