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Thungela Resources Ltd reported on Monday its profit plunged as coal prices declined, with geopolitical risks and tariffs dampening demand. The Rosebank-based thermal coal producer posted pretax profit of R 384 million for the six months that ended June 30, down 78% from R 1.77 billion a year earlier. Profit tumbled 79% to R 248 million from R 1.19 billion. Shares in Thungela were down 4.2% to 368.43 pence on Monday in London, and they lost 3.2% to R 87.79 in Johannesburg. Amid depressed coal prices and a firmer rand, revenue was R 14.81 billion, down 12% from R 16.75 billion, dragging adjusted earnings before interest, taxes, depreciation and amortisation down 68% to R 691 million from R 2.15 billion. Average realised Richards Bay export price fell 8.9% to $78.13 per tonne from $85.73. The $78.13 price represented a discount of 15% to the Richards Bay Benchmark coal price. Richards Bay Benchmark coal price was down 9.2% to $91.78 per tonne from $101.05. Average realised Newcastle export price dropped 8.0% to $109.28 a tonne from $118.82. Thungela said its first-half results reflected the continued pressure on coal prices, blaming geopolitical tensions and rising tariffs. The impact of slowing growth on coal demand, coupled with increased domestic production, has resulted in high stockpile levels at major import hubs, leading to depressed prices, the company said. But export saleable production in South Africa rose 4% to 6.4 million tonnes from 6.2 million tonnes, mainly due to productivity gains at Zibulo and Mafube, while production at Khwezela was impacted by abnormally high rainfall. Thungela also said the South African coal industry continued to benefit from the improved rail performance. The company’s full-year guidance for South African export saleable production is between 12.8 million tonnes and 13.6 million tonnes. In Australia, production at Ensham coal mine fell 16% to 1.6 million tonnes from 1.9 million tonnes, however. This was due to challenging geology in the first half of 2025. Thungela expects production at Ensham to improve in the second half of the year. But given the geological conditions experienced, production is likely to be closer to the lower end of the guidance range of between 3.7 million tonnes and 4.1 million tonnes. Thungela maintained its interim dividend at 200 rand cents, despite sharply lower earnings. Earnings per share plunged 80% to 193 cents from 952 cents, and headline EPS slumped by the same percentage margin to 192 cents from 952 cents. Looking ahead, Thungela said the long-term coal fundamentals remain ‘supportive’, although demand for the balance of the year is contingent on the normal restocking activities in the Northern Hemisphere. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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