Dominion Diamond’s fiscal 2015 sales up 22%

Dominion Diamond Corporation announced its financial results for its fourth quarter 2015 ending January 2015 and fiscal 2015.

In the fiscal period of 2015, the company’s profit before income taxes stood at $166 million for the year (2014 – $4 million), and net profit attributable to shareholders from continuing operations of $66 million or $0.78 per share for the year (2014 – $(23) million or $(0.27) per share). Sales amounted to US$ 915.8 million rising 21.8 percent on y-o-y basis (US$ 751.9 million, previous year).

Dan Jarvis, Acting Chairman stated: “We have initiated a dividend at a level which we are confident is sustainable, while allowing us to continue to pursue our plans for growth for the Company.” As such, the company’s Board of Directors has declared a dividend of 40 cents per share to be paid in full on May 21, 2015 to shareholders of record at the close of business on April 30, 2015. Also, the company stated that subject to declaration by the Board of Directors, it intends to pay a regular annual dividend of 40 cents per share in total, on a semi-annual basis and through an interim and final dividend.

The fourth quarter delivered profit before income taxes of $48 million in the fourth quarter (2014 – $7 million), and a consolidated net loss attributable to shareholders of $(1) million or $(0.01) per share (2014 – $(8) million or $(0.09) per share). Sales were up 3.2 percent to $240.6 million.

The company stated in these three months, the diamond market was subdued but the year ended on a more positive note as the major producers allowed their clients to defer rough diamond purchases in areas where they had accumulated polished diamond stocks. The move helped reduce pressure on liquidity, at the time when cash from sales made into the United States for the holiday season flowed back into the market. The fiscal year ended with rough diamond prices slightly ahead of prices at the beginning of the year.