Yancoal Australia Ltd (ASX: YAL) has released its Half-Year Financial Report for the period ended 30 June 2026, presenting a mixed financial outcome despite strong operational performance. Yancoal, a leading low-cost coal producer with a diversified portfolio of Australian open-cut and underground mines, focuses on thermal, semi-soft coking, and pulverised coal injection (PCI) coals. The company reported a 13% increase in revenue from ordinary activities, reaching $3,024 million, up from $2,675 million in the prior corresponding period. However, net profit after income tax attributable to members significantly decreased by 90% to $17 million, compared to $163 million in H1 2025. Basic earnings per share also fell to 1.3 cents from 12.4 cents. The Board declared a fully franked interim dividend of A$0.0700 per share, payable on 18 September 2026.
The substantial decline in net profit was primarily influenced by non-operating items, which collectively resulted in a net pre-tax loss impact of $272 million. These included a $188 million fair value loss recycled from the hedge reserve, a $49 million impairment for Middlemount, and various contingent royalty adjustments. In contrast, Yancoal’s core operational performance showed resilience, with Operating EBITDA increasing by 29% to $767 million from $595 million. This was bolstered by a 3% rise in the overall average ex-mine selling price of coal, reaching A$154 per tonne, driven by higher global USD coal prices.
Operationally, Yancoal achieved a first-half record for attributable saleable coal production, climbing 5% to 19.8 million tonnes. This robust output positions the company well within the upper half of its full-year guidance range of 36.5 to 40.5 million tonnes. Cash operating costs per product tonne (excluding royalties) saw a slight increase to A$96 per tonne, up from A$93 per tonne, mainly due to higher diesel prices and maintenance. The company is also advancing its acquisition of 100% of Kestrel Coal Group for US$1.85 billion upfront, having secured Foreign Investment Review Board (FIRB) approval, with completion anticipated by the end of Q3 2026. Full-year capital expenditure guidance has been revised down to $600-$750 million.
