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RAPAPORT... Petra Diamonds' revenue increased 20.2 percent year on year to $471.8 million for the fiscal year that ended on June 30. Group profit jumped to $67.5 million compared with $27.9 million one year earlier. Diamond inventory fell 14.3 percent to $27 million and the company's net debt rose 3.4 percent to $124.9 million. Production during the fiscal year increased 17 percent to 3.1 million carats. Petra Diamonds concluded that the rough diamond market performed well during the course of the period, with prices improving about 10 percent during the second fiscal half. Petra anticipates that rough demand will continue to strengthen over the course of its current fiscal year due to constrained supplies, robust U.S. demand and accelerated growth from emerging markets such as China and India. Due to the favorable market dynamics, Petra expects higher prices through 2015. Production for the current fiscal year is expected to achieve 3.2 million carats, while Petra's expansion plans remain on track to increase production to 5 million carats by 2019. Johan Dippenaar, the CEO of Petra Diamonds, said, "Fiscal year 2014 was another year of steady progress for Petra, with production, revenue and the underlying profitability of the group rising in line with our expectations. Longer term, further to the delivery of our growth plans, the group remains on track to reach annual production of 5 million carats by fiscal year 2019. Petra's production growth comes at a time when demand for diamonds is continuing to grow around the world, but particularly in the major U.S. market and in emerging markets such as China and India. "There is subsequently a positive outlook for the company, particularly given our expectations for further increases in production, rising margins, supportive rough diamond prices, and the continued contribution of exceptional diamonds. We look forward to entering a period of significant cash generation and the commencement of dividend payments to our shareholders in due course," he said.
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