https://www.miningweekly.com

Soft coal prices tank Whitehaven profits

20th February 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – Coal miner Whitehaven Coal has reported a 30% drop in revenue for the interim period ending December, as coal prices tumbled.

The ASX-listed miner on Thursday reported that revenue for the six months under review reached A$885.1-million, down from the A$1.2-billion achieved in the previous corresponding period, as average achieved prices fell from A$155/t to A$108/t.

Earnings before interest, taxes, depreciation and amortization for the same period were down 68%, from A$550.8-million to A$177.3-million, while net profits after tax were down 91%, from A$305.8-million to A$27.4-million.

“The first-half result has been impacted by a softening of the Newcastle index thermal coal price. More subdued pricing, in combination with a number of transient production challenges and higher unit costs, has given rise to a more testing first half,” said MD and CEO Paul Flynn.

The trade dispute between the US and China during 2019 contributed to softness in global demand and in demand for thermal coal, and contributed to weakness in the seaborne thermal coal price, while low European gas prices and an increase in the European price of carbon also weighed upon coal prices.

Run-of-mine coal production for the interim period was down 30% on the previous corresponding period, to just over 6-million tonnes, down from 8.5-million tonnes, while saleable coal production was down 14%, from 7.6-million tonnes to 6.5-million tonnes.

Coal sales for the six months under review were up 15%, from 8.3-million tonnes to 8.4-million tonnes, as the sale of purchased coal increased by 80%, from 774 000 t to 1.3-million tonnes.

Looking ahead to the full 2020, Whitehaven was expecting run-of-mine production to reach between 20-million and 22-million tonnes, while managed coal sales are expected to reach between 19-million and 20-million tonnes, excluding the sale of purchased coal.

Edited by Creamer Media Reporter

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION