PERTH (miningweekly.com) - Coal miner Whitehaven Coal has reported a record net profit after tax for the first half of 2019, on the back of an 11% increase in sales revenue.
Net profit after tax for the six months to December reached A$305.8-million, up 19% on the previous corresponding period, after revenues increased to A$1.27-billion, up from the A$1.14-billion in the previous corresponding period.
Operating earnings before interest, taxes, depreciation and amortisation were also up from A$493.7-million to A$550.8-million in the same period.
“I’m pleased to report a record half-year financial result and an interim dividend for shareholders which takes the total shareholder return over the past 18 months to 80c a share, or almost A$800-million,” said Whitehaven CEO and MD Paul Flynn.
“Importantly we have achieved this result in spite of higher, but moderating costs, underscoring the resilience of the business as it continues to grow in scale across two of Australia’s highest quality coal basins.”
Run-of-mine production during the first half of the year increased by 2% on the previous corresponding period, while saleable coal production was down by 8%, to 7.6-million tonnes. Total coal sales for the half-year were also down by 9%, to 8.3-million tonnes, with coal stocks at the end of the period were up by 88%, to 2.6-million tonnes.
The high stocks of lower-cost coal will be processed and sold during the second half of the year.
For the full year, Whitehaven is predicting coal production to reach between 21.5-million and 22.5-million tonnes, with higher production in the second half of the year expected to reduce costs to meet the full-year guidance of A$67/t.