Thungela Resources Limited, the South African thermal coal exporter led by Moses Madondo, reported a sharp increase in first-half profit as higher benchmark coal prices, stronger production, and improved operations in South Africa and Australia helped lift earnings.

The company declared an ordinary interim cash dividend of R5.50 ($0.33) per share, a 175 percent increase from R2 ($0.12) a year earlier, giving shareholders a larger payout as the coal producer benefited from better operating results in the six months ended June 30, 2026.

Profit rose 461 percent to R1.39 billion ($85.7 million), compared with R248 million ($15.3 million) in the first half of 2025. Revenue increased 2 percent to R15.17 billion ($935.5 million) from R14.81 billion ($913.3 million). The higher revenue came as benchmark coal prices increased by 15 percent in South Africa and 25 percent in Australia.

Adjusted EBITDA nearly doubles

The gains were partly offset by an 11 percent average strengthening of the South African rand against the U.S. dollar, which reduced the value of dollar-linked earnings when translated into rand. Thungela’s underlying earnings also improved. Adjusted EBITDA rose 91 percent to R1.32 billion ($81.5 million) from R691 million ($42.6 million), while the adjusted EBITDA margin widened to 8.7 percent from 4.7 percent.

Earnings per share increased 467 percent to R10.95 ($0.67), compared with R1.93 ($0.11) a year earlier. Headline earnings per share rose 150 percent to R4.80 ($0.29) from R1.92 ($0.12). The improvement in earnings was supported by higher coal volumes. Export saleable production rose 6 percent to 8.5 million tonnes, or 8,477 kilotonnes, from 8 million tonnes, or 8,012 kilotonnes, in the prior-year period.

Export equity sales increased 7 percent to 8.94 million tonnes, while total export sales reached 9.5 million tonnes. The company generated R2.6 billion ($160.3 million) in cash from operating activities and reported adjusted operating free cash flow of R1.89 billion ($116.6 million) after R705 million ($43.5 million) in sustaining capital expenditure.

Cash generation also included R1.1 billion ($67.83 million) from foreign exchange derivatives. Thungela ended June with net cash of R6.11 billion ($377 million), leaving the company with a stronger balance sheet as it moved into the second half of the year. In South Africa, export saleable production reached 6.3 million tonnes. Thungela said water management measures at Khwezela and steady production from Mafube supported the result.

Thungela holds 2026 production guidance

The company also benefited from better rail performance. Export sales in South Africa reached 7.4 million tonnes as the Transnet Freight Rail export corridor improved to an annualized run rate of 59.9 million tonnes. Costs, however, remained an important part of the operating picture. South African FOB export costs averaged R1,374 ($84.70) per tonne during the period.

Thungela’s Australian operation also delivered a stronger result. At Ensham, export saleable production increased to 2.2 million tonnes from 1.6 million tonnes a year earlier, while FOB export costs fell to R1,466 ($90.40) per tonne. With production higher in both markets and rail performance improving in South Africa, Thungela kept its full-year 2026 guidance unchanged.

The company expects South African export saleable production to come in between 13 million and 13.6 million tonnes for the full year. Ensham is expected to produce between 3.9 million and 4.2 million tonnes of export saleable coal. The first-half results leave Thungela with higher profit, stronger cash generation, and a larger interim dividend, while the company continues to rely on coal prices, production volumes, operating costs, and export logistics for the remainder of 2026.