- Whitehaven Coal (WHC) reports a record half with a 460 per cent increase in net profits to $340 million, driven by higher coal prices
- Coal prices reached record highs during the period due to strong demand for high quality energy and a supply constrained market
- The strong operating cash flows enabled the company to slash its net debt by 50 per cent to $403.4 million
- The company has declared an interim unfranked dividend of 8 cents per share and announced plans to conduct an on-market share buyback program of up to 10 per cent of issued shares, with a total ceiling of $400 million
- Shares were trading 1.63 per cent lower today at $3.02 each
Whitehaven Coal (WHC) has reported a record half with a 460 per cent increase in net profits, driven by higher coal prices.
Profits came in at $340 million, a massive climb from the loss of $94.46 million recorded in the previous corresponding period.
The jump came as coal prices reached record highs due to strong “demand for high quality energy in a supply constrained market”.
The group also enjoyed a 1,601 per cent rise in EBITDA to $632.6 million.
Over the six month period, the company generated revenue of $1.44 billion while operating expenses dipped slightly to $322,000.
Average achieved prices for the half were $202 per tonne, an increase of $121 per tonne.
Supply constraints drove prices as the industry faced pressure from La Niña wet weather and flooding, higher demurrage costs due to adverse weather conditions, rising diesel prices, lower mine yields and the impact of COVID-19.
Despite the gains due to price, total coal sales fell 18 per cent to 7.17 million tonnes.
This is due to a number of issues including difficult mining conditions, labour shortages, and poor weather conditions.
Whitehaven invested $93 million during the period for spending on growth projects and its acquisition of EDF’s interest in Narrabri.
The strong operating cash flows enabled the company to slash its net debt by 50 per cent to $403.4 million.
The company has declared an interim unfranked dividend of 8 cents per share and announced plans to conduct an on-market share repurchase program of up to 10 per cent of issued shares, with a total ceiling of $400 million.
“The Board’s decision to restart dividends and implement an on-market share buyback delivers value for our shareholders both today, and over the longer term,” MD and CEO Paul Flynn said.
Looking ahead, the company is focussing on improving safety performance, maximising profit margins, and managing the impacts of Omicron across the coal supply chain.
Shares were trading 1.63 per cent lower today at $3.02 each at 10.54 am.