Whitehaven Coal share price crashes to 52 week low following annual result

The Whitehaven Coal share price plunged more than 12% lower today after the company released it results for the 2020 financial year.

| More on:
man bending over to look at red arrow crashing down through the ground

Image source: Getty Images

The Whitehaven Coal Ltd (ASX: WHC) share price has plummeted to a new 52-week low of $1.08 in morning trade today. This steep slide came after the company released its annual result for the 2020 financial year (FY20).

At the time of writing, the Whitehaven Coal share price is down 12.05% to $1.10. 

What was in the FY20 announcement?

In today’s announcement, Whitehaven reported FY20 coal production of 20.6 million tonnes.

Revenue came in at $1.72 billion, down from $2.49 billion in the prior corresponding period (pcp).

Whitehaven Coal had net profit after tax of $30.07 million in the 2020 financial year, down 94.7% on pcp. According to the company, its earnings were impacted by lower coal prices. Net profit was also affected by the amortisation of the value of its mines. Depreciation and amortisation totalled $224.6 million in the 2020 financial year.

Diluted earnings per share were 3 cents in FY20 compared to 52.4 cents per share in FY19.

The company reported underlying earnings before interest, tax, depreciation and amortisation of $306 million in the 2020 financial year, down from $1.04 billion in 2019.

Whitehaven Coal had net debt of $788 million at 30 June 2020 and liquidity of $468.8 million.

Managing director and CEO Paul Flynn commented on the company’s FY21 outlook: “Our immediate focus is on achieving greater efficiency and more consistent operational performance in anticipation of markets rebalancing and price improvements beginning to flow through.”

About Whitehaven Coal 

Whitehaven Coal is a producer and exporter of thermal coal with assets in Australia. It has been listed on the ASX since 2007.

Earlier in August, Whitehaven Coal announced that it had received approval for its Vickery extension project near Gunnedah in NSW. The project will involve capital spending of $700 million.

The Whitehaven Coal share price today hit a new 52-week low of $1.08. It is down more than 57% since the beginning of the year and more than 66% since this time last year.

These 3 stocks could be the next big movers in 2021

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

*Returns as of 15/2/2021

Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News