This morning New Hope Corporation Ltd (ASX: NHC) reported its half-year results for the period ending January 31 2019. Below is a summary of the results with comparisons to the prior corresponding half year.
- Revenue of $616.7m, up 21%
- EBITDA backing out 'irregular' costs $285.1m, up 31%
- Net profit of $120.2m, up 4%
- Net profit before "irregular' costs $159.8m, up 33%
- Fully franked interim dividend of 8 cents per share
- Earnings per share before non-regular items of 19.2 cents
- Real earnings per share of 14.4 cents
- Debt around $211 million
As we can see the coal miner has backed out costs around acquisition expenses, 'onerous contracts' and other 'transaction costs' to arrive at its adjusted numbers, but given the share price is down 11% to $3.92 the market does not seem to be buying it.
Overall thought this appears a solid result from a coal miner that has benefited from rising coal prices over the last few years, despite the calls of many market commentators and professional analysts that coal prices are likely to fall.
New Hope is part owned by successful investing conglomerate Washington H. Soul Pattinson Ltd (ASX: SOL) and the miner's outlook is linked to the direction of coal prices and its management team's capital management skills as it invests in new mines and acquisitions.
