Petra Diamonds considering dividend payments after strong first half

20th Feb 2014 07:00

- Dividend payments could start by 2016- Adjusted operating profits up 157 per cent in H1- Capex funded by operating cashflow for first timePetra Diamonds said it is looking at commencing dividend payments in two years' time after a surge in profits in its first half.Adjusted operating profits were up 157% at $65.8m in the six months to December 31st on revenues that rose 19% to $185.5m.The company said that production increased by 31% during the period to 1.64m carats and that it remains on track to achieve annual output of 3m carats this year and 5m carats by 2019.The firm said that capital expenditure was entirely funded by operating cashflow for the first time during the first half. Operating cashflow was up 249% at $91.9m.As usual, Petra's results for the full financial year are expected to be second half-weighted due to seasonal timing of tenders. Results for the second half will also be flattered by the $25.6m of sale proceeds from the "exceptional" 29.62-carat Cullinan blue diamond sold earlier this month.Including this sale, Petra has generated $85.7m in revenues in the second half so far."We look forward to a strong second half, incorporating a continued firm rough diamond market, higher carat sales, and higher revenue and cashflows augmented by the sale proceeds of the 29.6 carat blue diamond from Cullinan," said Chief Executive Johan Dippenaar.Based on its current operations and expansion plans, stated production growth, diamond prices and other relevant factors, Petra said it "expects to consider the commencement of dividend payments from the financial year ending 2016".BC