Whitehaven share price rebounds 5% on earnings result
In case you missed it, here are some of the key takeaways from this morning’s full-year result:
- Revenue down 9.3% on the prior corresponding period (pcp) to $1.56 billion
- Earnings before interest, tax, depreciation and amortisation (EBITDA) down 33% on pcp to $204.5 million
- Operating cash flows down 5% on pcp to $138.8 million
- Net loss after tax before significant items of $87.3 million, after $30 million net profit after tax (NPAT)
The Whitehaven share price initially crashed following the softer earnings result before slingshotting higher on Thursday afternoon. Shares in the Aussie coal miner closed the day up 4.95% in a stunning turnaround.
Investors may be wondering what caused the lower revenues and earnings figures. The obvious place to start with any commodity-based company is with commodity prices themselves.
Whitehaven’s EBITDA margin slipped from $21 per tonne in FY20 to just $14 per tonne in FY21. That was largely as a result of the company’s average realised price falling 8.7% to $95 per tonne.
The Aussie coal miner reported 14.4 million tonnes in sales during the year which was broadly in line with FY20 numbers but fell short of what the market was expecting.
Despite a weak result this morning, it’s actually been a strong year for shareholders. The Whitehaven share price has rocketed 150% higher in the past 12 months and 41% in 2021 alone.
Whitehaven CEO Paul Flynn reflected on the FY21 result:
FY21 was very much a year of highs and lows both operationally and in terms of factors outside our control.
Investors saw those highs and lows mirrored in the Whitehaven share price move on Thursday, recovering from a 3.4% drop at the open to finish the day up 4.95% at $2.33 per share.
That’s just shy of the company’s high of $2.44 per share and gives the company a market capitalisation of $2.4 billion.