Australian coal miner Whitehaven expects to report “exceptional” first half results next month, as strong demand for high calorific value (CV) coal, coupled with supply constraints, continue to underpin high prices, CEO Paul Flynn said on Friday.

The company achieved an average coal price of A$527/t in the December quarter, compared with A$211/t a year earlier.

Whitehaven expects to report 2023 half-year earnings before interest, taxes, depreciation and amortisation of about A$2.6-billion – up from A$600 000 in the first six months of its 2022 financial year.

Given the lack of available supply side response, the miner said it expected thermal coal prices to be “well supported” throughout 2023.

“We continue to see strong demand for high CV coal and tight supply, particularly with the sanctions/bans on Russian coal to Europe, Japan and some segments in Taiwan.”

In metallurgical markets, while pricing is relatively strong compared with historical levels, Whitehaven said it expected further volatility owing to ongoing global economic pressures.

Flynn reported that Whitehaven maintained strong operational performance at its Narrabri underground mine, which helped to offset the impact of continued wet weather on volumes from its opencut mines. Rain and flooding events slowed run-of-mine (RoM) production, predominantly at Maules Creek and Tarrawonga.

Nevertheless, December quarter managed RoM increased by 21% quarter-on-quarter to 4.8-million tonnes. Total equity sales of produced coal rose by 15% on the September quarter to 3.4-million tonnes. Managed sales of produced coal increased by 16% quarter-on-quarter to 4.3-million tonnes.

The miner generated A$2.5-billion of cash from operations in the half-year, including A$1-billion in the December quarter. At the end of December, the firm held a net cash position of A$2.5-billion.

“The company is performing well and delivering strong returns for our shareholders including buying back A$593-million of shares in the first half of FY23,” said Flynn.

During the December quarter, 40.1-million shares were bought back for A$367-million. Since the start of the share buyback programme in March 2022, a total of 143.4-million shares have been bought back for A$955-million.