- Coal miner New Hope (NHC) posts a record half-year profit and declares a large interim dividend increase
- For the half year ending January 31, 2023, the company achieved a net profit after tax of $669 million — a 103 per cent increase from the prior corresponding period
- NHC attributed the strong result to increased demand for Australian thermal coal that drove prices from $192.4 per tonne on January 31, 2022, to $467.4 per tonne in 2023
- On the back of the record profit results, NHC declares an interim dividend of 30 cents a share — up from 17 cents last year — and a special dividend of 10 cents per share
- NHC shares closed 8.57 per cent higher at $5.32 on Tuesday afternoon
Coal miner New Hope (NHC) has posted a record half-year profit and declared a large interim dividend increase for the six months to the end of January.
Over the half-year, the company achieved a net profit after tax of $669 million — a 103 per cent increase from the prior corresponding period.
The profit increase came alongside a 54 per cent year-on-year rise in revenue to $1.58 billion.
NHC said the strong results were thanks to increased demand for Australian thermal coal that drove prices from $192.4 per tonne on January 31, 2022, to $467.4 per tonne in 2023.
However, the numbers were offset by lower sales volumes due to adverse weather that impacted operations at the company’s Bengalla Mine and across the Hunter Valley logistics corridor.
The company produced 3.2 million tonnes of saleable coal for the half year — a 1.2 million tonne reduction to the comparative period.
As the weather conditions abate, NHC said global thermal coal demand was outstripping supply, placing increased value on already-permitted low-cost operations. The company told investors it had the ability to “almost double” current production levels over the next three years through organic growth.
On the back of the record profit results, New Hope declared an interim dividend of 30 cents a share along with a special dividend of 10 cents per share. Last year, the company issued an interim dividend of 17 cents and a special dividend of 13 cents.
In terms of future funding, New Hope said its capital position remained strong, with a closing balance of cash and cash equivalents of $971.2 million and term deposits of $100 million.
NHC shares closed 8.57 per cent higher at $5.32 on Tuesday afternoon.