Sarine Tech says no material impact from geopolitical tensions on Q1 diamond business

Annabeth Leow

Published Sun, May 15, 2022 · 11:16 PM

MAINBOARD-LISTED Sarine Technologies : U77 0%, which develops technology for the diamond industry, said in a first-quarter update on Sunday (May 15) that it has not seen any material impact on its business from geopolitical developments such as the war in Ukraine.

Israeli-based Sarine Tech reported revenue of US$15.6 million in the 3 months to Mar 31, 2022, down 9.9 per cent on what it called an “exceptionally strong” year-ago period. Net profit was “just under US$3.4 million”, said the company, citing “ongoing beneficial tax rates”.

“Sanctions notwithstanding, the flow of rough diamonds into the value chain, including those of Russian origin, continued unabated in the first 3 months of 2022,” Sarine Tech added. The trade of rough and polished diamonds made up 11.6 per cent of its overall revenue for the period.

Still, the company noted that that stricter sanctions on Russian rough diamonds were introduced in April, with Russian diamond production group Alrosa one specific target.

“These sanctions have reportedly had a more pronounced effect on the flow of Russian production, which accounts for some 35 per cent of the total world output, into the midstream polishing segment, though it is not yet clear to what extent,” said Sarine Tech, adding that it continues to closely monitor the situation around the conflict in Ukraine, which Russia invaded in February.

Sarine Tech shares last traded at S$0.43, down by 0.5 Singapore cent or 1.15 per cent, before the news.