PERTH (miningweekly.com) – Higher coal prices has seen ASX-listed Whitehaven Coal report record net profits after tax and record revenues for the six months ended December.
The company on Thursday said that net profits after tax had reached a record A$1.8-billion for the half-year under review, a 423% increase on the A$340.5-million reported in the previous corresponding period.
Revenue also increased by 164% in the same period, from a$1.44-billion to a record A$3.8-billion as coal prices averaged A$552/t during the period under review, compared with the A$202/t previously achieved.
Run-of-mine managed production reached 8.8-million tonnes a year during the half-year, up from the 8.4-million tonnes in the previous corresponding period.
“In the first half of 2023, global energy shortages continued to underpin strong pricing. Weather related production constraints in New South Wales contributed to tight supply,” said Whitehaven CEO and MD Paul Flynn.
“Prices for high quality, high-CV coal held at very high levels during the half year and our customers remain focused on energy security as a key priority. We achieved a record realised average price of A$552/t in the half year, a 173% increase on the same period last year.
“Despite weather interruptions and ongoing labour constraints, the business performed well operationally. Our Narrabri underground mine delivered a strong operational performance and our safety results continued to improve with a rolling 12 month recordable injury frequency rate of 5.2 representing a 15% year on year improvement.”
Looking ahead at 2023, Flynn said that demand for high-quality seaborne thermal coal remains strong and while Whitehaven had seen some cyclical price softening moving into the second half of the year, the company expected that high-CV coal prices would continue to be well supported throughout 2023.
“We are focused on maximising margins and meeting production and sales guidance for 2023. At the same time, we are progressing plans for our Vickery and Winchester South development projects, including completing our assessment of a staged approach of the Vickery development to bring on smaller volumes sooner to help meet the strong demand.”
The company’s full year production guidance is set between 19-million and 20.4-million tonnes of coal, with its managed coal sales targeted at between 16.5-million and 18-million tonnes.
In January this year, the New South Wales government flagged its intentions to extend its domestic coal reservation scheme to include producers of export coal. Whitehaven’s obligations under the scheme, which will apply from April 1, 2023 to June 30, 2024, will be confirmed with the release of the government’s finalised directions, which we are yet to receive.