The New Hope Corporation Limited (ASX: NHC) share price is falling today, down 2.45% at the time of writing to $1.20. This comes after the company announced a restructure of its corporate office.
What was in the announcement?
New Hope Corporation advised it had offered voluntary redundancies to workers at its corporate office. The coal and oil producer plans to make 75% of its corporate office staff redundant by the end of November 2020. The restructure will see the majority of executive positions removed.
The company will adopt what it refers to as a more ‘streamlined’ management structure.
New Hope Corporation CEO Reinhold Schmidt said with ongoing uncertainty around approvals for the New Acland coal mine, management has had “to refocus and put the business in the best position to go forward”.
We have had to make some very difficult decisions but, in reality, even if we were granted approvals for stage 3 today, we are in for a tough couple of years as we ramp up again.
About the New Hope Corporation share price
New Hope is a coal and oil producer with assets in Australia. The company has been listed on the ASX since 2003.
In the year to 30 June 2020, New Hope had revenue of $1.08 billion, down 17% compared to the year to 30 June 2019. Earnings before interest, tax, depreciation and amortisation (EBITDA) were $290 million in FY2020, down 44% from FY19. Earnings per share (EPS) before non regular items were 10 cents.
The New Hope share price is up 17.65% since its 52-week low of $1.02, however, it is down 42.03% since the beginning of the year. The New Hope Corporation share price is down 47.60% since this time last year.