The best ASX All Ordinaries shares of the March quarter unmasked

Leading ASX coal shares have massively outperformed the benchmark amid soaring energy prices.

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Key points

  • Many ASX All Ordinaries shares struggled in the March quarter 
  • Rising demand and supply disruptions have seen energy prices and ASX energy shares soar 
  • Coal shares led the charge higher, outperforming oil and gas 

After a strong run in 2021, which saw the All Ordinaries Index (ASX: XAO) gain 14%, ASX All Ordinaries shares have had a more difficult time in 2022.

From the closing bell on 31 December through to the closing bell on 31 March, the All Ords was essentially flat, up a slender 0.1%.

But not all ASX All Ordinaries shares struggled.

With rocketing energy prices, you’ll find ASX energy shares dominating the top returns this year. And with coal – yes, the ‘stranded asset’ – hitting all time highs, ASX All Ordinaries shares in the coal sector edged out their rivals in oil and gas to take the lead.

Below we look at the top three performers over the March quarter.

The third best ASX All Ordinaries performer of the quarter

Coming in at number three is Coronado Global Resources Inc (ASX: CRN).

The ASX All Ordinaries share gained 61% during the quarter.

Coronado produces high-quality metallurgical coal, which is used in the production of steel.

And investors rewarded the company for some very strong half year performance figures.

Highlights include a 47% year-on-year increase in revenue, which hit US$2.15 billion. Net income was also way up, increasing 184% over the prior corresponding half year to $189.4 million. And adjusted earnings before income, taxes, depreciation and amortisation (EBITDA) leapt 804% to $486 million.

In the early weeks of March, Goldman Sachs lifted its price target on Coronado shares by 33% to $2.80. The ASX All Ordinaries share finished March at $2 per share and is currently trading for $2.14.

Coming in at number two…

The second best ASX All Ordinaries share of the March quarter is Yancoal Australia Ltd (ASX: YAL). Yancoal shares gained 71% over the three months, finishing at $4.44 per share.

Yancoal is Australia’s largest pure-play coal producer. It operates and manages a broad portfolio of coal mines across New South Wales, Queensland and Western Australia.

The coal producer released some stellar full 2021 financial year results in February, buoying investor enthusiasm.

Those results included a 56% leap in revenue from continuing operations to an all-time high of $5.4 billion. Net profit after tax (NPAT) rebounded from a $1 billion loss in FY20 to a $791 million gain in FY21.

Yancoal rewarded shareholders by reinstating its dividend, with the company paying an unfranked 9.7% trailing dividend yield at current share prices.

And that brings us to…

The best ASX All Ordinaries performer in the March quarter

Leading the pack was Stanmore Resources Ltd (ASX: SMR), which gained a whopping 83% over the quarter.

Until its rebranding in April 2021, Stanmore Resources was called Stanmore Coal. Which gives you a fair indication of how the ASX All Ordinaries share earns its revenue.

With both thermal coal (mostly used to generate electricity) and metallurgical coal prices rocketing, Stanmore also received some investor attention after releasing its own very strong FY21 results earlier in the quarter.

Those results included a 125% year-on-year boost in underlying EBITDA, which reached $54 million. The coal producer ended 2021 with operating cash flow of $127 million, up from $28 million the previous year.

At the current share price, this leading ASX All Ordinaries share pays a 4.3% trailing dividend yield, fully franked.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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