Whitehaven profit jumps on strong prices
An increase in volumes and a jump in prices has helped Whitehaven Coal to sharply lift its half-year profit.
SYDNEY - [AAP] An increase in volumes and a jump in prices has helped Whitehaven Coal (ASX: WHC) to sharply lift its half-year profit.
The east coast miner says net profit for the six months to December 31 had come in at $257.2 million, up 63 per cent on the previous year's $157.5 million.
Revenue was 39 per cent higher at $1.15 billion.
Chief executive Paul Flynn says the result is the culmination of a growth strategy that has been in place for years.
"We continue to see strong interest from potential new customers throughout Asia," he said in a statement on Thursday.
"Many are seeking Whitehaven's high-quality coal for their power stations and steel mills--either planned, under-construction, or newly built."
The company said it had received an average price of $124 a tonne for its coal during the six months, up from $106 per tonne in the same period last year.
As a result, its average earnings margin jumped 32 per cent to $54 per tonne in the half-year.
Whitehaven in January said output for the six months had risen seven per cent to 10.9 million tonnes of saleable coal, while total coal sales were 16 per cent higher at 11.9 million tonnes, thanks to strength from its mines in the Gunnedah coal basin in northeastern NSW.
However, lower production at its Narrabri mine had led the company to cut its production guidance for the full year to between 20.5 and 21 million tonnes, from the previous range of 22-23 million tonnes.
It reaffirmed that lower guidance on Friday.
The company has declared an unfranked interim dividend of 13 cents a share, saying it was happy to reward shareholders now that the major capital expenditure is behind it.
It paid no interim dividend last year.
At 1032 AEDT, Whitehaven Coal shares were down 2.15 per cent at $4.56.
WHITEHAVEN HALF-YEAR PROFIT SHINES
* Net profit up 63pc at $257.2m
* Revenue up 39pc to $1.15bn
* Unfranked interim dividend of 13 cents vs NIL
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