Impala's headline earnings per share (HEPS) - the main measure of corporate profit in South Africa - fell to 16.90 rand ($1.10) for the half-year that ended Dec. 31 from 18.55 rand a year ago.
The company announced a dividend of 525 cents per share.
Prices of PGMs (platinum group metals) have come off record highs seen early last year and remained volatile as global growth prospects wavered, raising questions about a sustained up-cycle in PGMs. This has been further exacerbated by rising inflation pressures denting margins.
South African companies have been further impacted by erratic power supplies.
Impala said its Rustenburg refinery facilities - one of its biggest operations - had been hit as one of the furnaces had to be completely rebuilt afte rit broke down due to inconsistent power supply from state-utility Eskom.
This has hurt production and will impact the full-year output, which Impala expects to be between 3.1 and 3.2 million ounces, down from 3.27 million ounces the previous year.
Impala's earnings were in sharp contrast to its bigger rival Anglo American Platinum Ltd, which posted a 160% rise in full-year profit, driven by higher production and sales.
Both companies, like many miners, have flagged inflationary concerns which could impact costs and margins.
It cost Impala 17% more to produce a PGM ounce, compared to the previous year.
Impala expects easing supply chain constraints in the automotive industry to support demand, while geopolitical tensions could tighten supply, helping prices.
"The confluence of these factors is likely to result in a tightening of both palladium and rhodium markets relative to the over-supply experienced in H1 FY2022," Impala said.
($1 = 15.3577 rand)
(Reporting by Nelson Banya; Editing by Promit Mukherjee and Uttaresh.V)
