(Reuters) -South Africa’s Thungela Resources expects its half-year profit to fall by as much as 85%, mainly due to lower thermal coal prices as global economic uncertainty impacts energy demand, the coal miner said on Friday.
Thungela said it expects headline earnings per share (HEPS) to be between 1.40-2.10 rand ($0.0789-$0.1184) in the six months to June 30, compared to 9.52 rand during the same period last year.
Thungela is South Africa’s biggest thermal coal exporter and along with peers it has been forced to cap output to match limited freight rail and port capacity provided by South Africa’s struggling state-owned logistics firm Transnet.
Thermal coal demand has also slowed in key markets China and India after increases in domestic coal production.
Average coal prices through Richards Bay, South Africa’s main coal export terminal, were 14% lower during the six months compared to last year, as tariff-induced instability in global trade impacts major economies and energy demand.
The verage export price in Australia, where Thungela owns the Ensham mine, was 11% lower compared to the same period last year, it said.
Thungela said it also incurred 285 million rand in restructuring costs related to its Goedehoop and Isibonelo operations which reach the end of their lives this year.
The company will release its half-year results on August 18.
($1 = 17.7343 rand)
(Reporting by Nelson Banya)
