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Whitehaven posts record profits

Whitehaven posts record profits

Photo by Bloomberg

15th August 2019

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Coal miner Whitehaven Coal has posted a record net profit after tax for the full year ended June, driven by record coal production.

Whitehaven on Thursday reported a net profit after tax of A$564.9-million for the 2019 financial year, up from the A$524.5-million reported in the previous financial year, while underlying earnings before interest, taxes, depreciation and amortization increased from A$1.01-billion to A$1.04-billion.

“It is great to have delivered another record year of profit and continue a pattern of strong and consistent financial returns,” said MD and CEO Paul Flynn.

Coal sales for the full year reached 17.6-million tonnes, including 16-million tonnes of produced coal. Sales revenue for the full year was up 10% on the previous comparable period, reaching A$2.4-billion, while net debt was reduced to A$161.6-million.

“With significant positive cash flow generated across the portfolio and debt all but eliminated, we are putting our strong balance sheet to work, progressing our two key development projects and investing in technology and expansion initiatives at our existing operations,” said Flynn.

Whitehaven in June started site works for the approved 4.5-million-tonne-a-year Vickery coal project, in New South Wales, and is expecting a decision from the Independent Planning Commission on the Vickery expansion project early in 2020.

Whitehaven is also continuing work on Winchester South, in Queensland, which has a current resource estimate of 530-million tonnes, and where a Joint Ore Reserves Committee-compliant reserve is scheduled for later this year.

“We are fast approaching a key transformation point in the evolution of Whitehaven that will give rise to a larger, more efficient and better-integrated enterprise, well positioned to take advantage of the demand for high quality coal in the Asian region.”

Edited by Creamer Media Reporter

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