Join our daily newsletter At The Bell to receive exclusive market insights
- Whitehaven Coal (WHC) flags a “strong” June quarter on the back of record coal prices and solid production
- The company achieves a record average coal price of $514 per tonne for the quarter and $325 per tonne for FY22
- Subject to final audit, Whitehaven expects to report an FY22 EBITDA result of around $3 billion — much higher than its FY21 result of $200 million
- At the end of June, Whitehaven held a net cash position of $1 billion, with $1.4 billion of cash generated in the June quarter
- Whitehaven Coal shares are up 7.66 per cent to $6.04 at 10:35 am AEST
Whitehaven Coal (WHC) has flagged a “strong” June quarter on the back of record coal prices and solid production.
The company has achieved a record average coal price of $514 per tonne for the quarter and $325 per tonne for FY22.
Whitehaven said it was expecting to report FY22 earnings before interest, tax, depreciation and amortisation (EBITDA) result of around $3 billion — much higher than the FY21 result of $200 million.
The company’s managed run-of-mine (ROM) production for the June quarter was 6.4 million tonnes, up 21 per cent on the March quarter, with ROM coal production for the full FY22 reaching 20 million tonnes. This is within the company’s guidance of 19-20.5 million tonnes.
Sales volumes for the quarter topped 2.8 million tonnes — 15 per cent above the previous quarter, reflecting strong saleable coal production over the three months to the end of June.
At the end of June, Whitehaven held a net cash position of $1 billion, with $1.4 billion of cash generated in the June quarter.
Managing Director and CEO Paul Flynn said the company was “well-placed” to support energy security as demand for high-quality coal outstripped global supply.
“Coal prices set a new record during the June quarter and continue to be well supported,” Mr Flynn said.
“Stronger operational performance has enabled us to deliver our FY22 production and sales guidance in spite of a tight labour market and COVID-related absenteeism.”
After buying back 76.37 million shares, about seven per cent of issued shared capital, for $362.6 million, the company said it was now aiming to complete its 10 per cent share buy-back within a revised total cost of $550 million.
Whitehaven Coal shares were up 7.66 per cent to $6.04 at 10:35 am AEST.
