NSW-based Whitehaven Coal boosted net profit by nearly 30% in the year to June and will reward shareholders with a special dividend. for the second year running.
Thanks to higher production and sales volumes and higher prices for its thermal coal the company listed revenue 27.3% to $2.26 billion with net profit up 27.3% to a record $525.6 million.
Whitehaven’s earnings before interest, tax, depreciation and amortisation (EBITDA) jumped to $940 million.
Whitehaven declared an unfranked final dividend of 14 cents per share, along with a special dividend of 13 cents a share.
A year ago the company paid a 14 cents a share special dividend, on top of a six cents a share final for a total of 20 cents for the year. That was after no paying a dividend since 2012.
The company paid an interim of 13 cents a share, making an ordinary total of 27 cents a share and a total of 40 cents a share.
Net debt was reduced to $270.4 million at June 30 with gearing at 7% (9% a year ago).
Investors liked the news and Whitehaven shares were up more than 7% to $5.64 just before midday Tuesday. But those gains vanished in the afternoon and the shares ended up 1.3% on the day at $5.33.
It was a bit of a one session wonder!
The company reported a 7% rise in production to 22.9 million tonnes for the year to June as coal prices traded at or near six and a half year lows in the closing months of the year to June.
The company said it had received an average price of $US130 a tonne for its coal during the year, up from $112 per tonne in the previous year.
As a result, its average earnings margin rose to $A59 per tonne in 2018/19, from $A46 a tonne in the previous year.
The company has flagged coal production in 2018-19 to be in the range of 22 to 23 million tonnes, similar to 2017-18’s output.
Managing Director Paul Flynn expects prices to remain high and contribute to a strong financial forecast.
“FY19 is shaping up as another strong year for the company with the outlook for coal demand in Asia set to remain strong across both established and emerging markets,” he said in Tuesday’s statement.
