Thungela Resources Faces Profit Decline Amid Softened Coal Prices

Thungela Resources reported a 29% decline in its 2024 profit, driven by lower thermal coal prices. The profit fell to 3.544 billion rand from 4.97 billion rand previously. Despite exceeding coal production expectations due to improved logistics, the company announced a decreased final dividend.

South Africa's Thungela Resources, a major thermal coal exporter, reported a significant drop in profit for 2024, attributing this to decreased prices for the fossil fuel.

The company's profit dipped 29% to 3.544 billion rand from a previous 4.97 billion rand, as thermal coal prices were pressured by Europe's lower demand due to milder winter conditions and high energy stock levels.

Despite challenges, Thungela exceeded its coal production targets, mining 13.6 million tons in South Africa, aided by improved rail logistics. To counter local logistic issues, it expanded operations by acquiring a mine in Australia, which produced 4.1 million tons of coal. The firm declared a lower final dividend of 11 rand per share.

(With inputs from agencies.)