Shares of Sakari Resources rose to the highest in nearly two weeks after the coal producer posted a 66% increase in its second-quarter net profit from the previous three months on the back of lower costs and higher output.Sakari shares gained as much as 4.7% to $1.33, the strongest level since July 19. Sakari stock has fallen 28% so far this year.
Nearly 28 million Sakari shares changed hands, 1.2 times the average full-day volume over the past 30 days. Sakari was among the top traded stocks by both value and volume in the Singapore market.
The company turned in net profit of $23.9 million for the quarter ended June, up from $14.5 million in the preceding three months. But net profit fell 39% from a year earlier.
“Year-on-year, coal prices had fallen quite a lot and we had expected the weaker performance. But the quarter-on-quarter improvement was actually a lot stronger than what we expected,” said Carey Wong, an analyst at OCBC Investment Research.
“The key reasons for the improvement in margins is that they managed to sustain the average selling prices, and they have also managed to reduce cash costs slightly faster than what we expected.”
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