Australia's largest lithium company Pilbara Minerals has reported an 82 per cent slide in net profit on lower prices for the battery mineral.
The company reported on Thursday a net profit of $220 million for the six months to December 31, down from $1.24 billion a year earlier, despite a four per cent rise in production to 320.2 thousand tonnes.
Revenue slumped by more than two thirds to $757 million, reflecting a 67 per cent decline in average realised price, partly offset by a seven per cent rise in sales volume.
"Although pricing has reduced significantly from the prior year record highs, the company finds itself in a position of strength," CEO Dale Henderson said.
He said the strong balance sheet positions the business to navigate any period of softer pricing and provides a competitive advantage relative to many peers within the sector.
The underlying profit after tax fell more than three quarters (78 per cent) to $273 million.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) was $415 million, down 77 per cent.
A Pilgangoora operations power strategy is expected to materially reduce power-related emissions intensity and unit costs over time, the company said.
The P680 and P1000 expansion projects progressed on schedule and budget and commissioning commenced on Train 1 at the chemical plant joint venture with POSCO in South Korea.
To preserve the cash balance of $2.14 billion, largely unchanged from a year earlier, no interim dividend was declared.
