Own Soul Patts shares? Here's how much of its portfolio is exposed to coal

Is Soul Patts heavily invested in coal shares?

| More on:
A miner holds two hands full of coal, indicating share price movement for coal and energy companies

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Soul Patts is one of the ASX's oldest shares 
  • It owns a wide portfolio of ASX-listed shares 
  • But it also owns a big chunk of coal miner New Hope... 

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) is one of the oldest shares on the ASX. In fact, Soul Patts shares, with origins in the pre-Federation 19th century, predates the ASX itself.

The company initially grew out of a pharmacy. But these days, Soul Patts is well-known for its Listed Investment Company-like approach to managing its shareholders' wealth. The company functions more like a Listed investment Company these days than a traditional company.

Its primary business is investing in a large portfolio of assets on behalf of its investors. Most of these assets are ASX-listed shares, in which Soul Patts has amassed large stakes in.

Many of these holdings aren't controversial. They include (as of the March half-year update) the company's 43.3% stake in Brickworks Limited (ASX: BKW), the 12.6% share of TPG Telecom Ltd (ASX: TPG) and the 25.4% chunk of Tuas Ltd (ASX: TUA).

Soul Patts or Coal Patts? Here's what the company owns in coal…

But this hasn't come without some consternation from some investors. For another of Soul Patts' significant holdings is a 39.9% stake in ASX 200 coal miner New Hope Corporation Limited (ASX: NHC). New Hope is a pureplay coal miner, which of course makes it a controversial asset to hold for any investment manager in today's climate.

So how much of Soul Patts' portfolio is exposed to coal miner New Hope?

Well, as of 31 January 2022, Soul Patts had a net asset value of $9.042 billion. That's including its multiple share portfolios, as well as its property assets.

Of this, $9.042 billion, $4.125 billion is housed in the company's strategic portfolio. This is made up of the stakes in the companies listed above, but excludes the large-cap shares Soul Patts acquired from its acquisition of Milton Corporation last year.

So on today's pricing, New Hope has a market capitalisation of $3.03 billion. Soul Patts' 39.9% stake in this company means it would have approximately $1.21 billion worth of New Hope shares right now.

That would equate to 13.37% of Soul Patts' entire investment portfolio (on the 31 January numbers), and just over 14% of Soul Patts' entire market capitalisation today.

So that's something to keep in mind if you own Soul Patts shares today.

Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.
Resources Shares

Down 14% in 2024, why is the BHP share price sliding again today?

ASX 200 investors are bidding down the BHP share price on Wednesday.

Read more »

A mining employee in a white hard hat cheers with fists pumped as the Hot Chili share price rises higher today
Resources Shares

These ASX 200 mining stocks could rise 40% to 50%

Analysts think these miners are dirt cheap at current levels.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Fortescue share price leaps 5% as electric machinery makes a milestone

Fortescue is charging ahead with its electric mining ambitions.

Read more »

rising mining asx share price represented by happy woman miner in hard hat
Resources Shares

Why the BHP share price crushed the benchmark this week

BHP shareholders enjoyed a rewarding week.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Dividend Investing

Here is the profit forecast to 2026 for BHP shares

Let’s unearth how much profit this miner could make.

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

Is the worst of the selling now over for ASX iron ore shares?

ASX iron ore giants like BHP, Rio Tinto and Fortescue rebounded this week after falling hard in 2024.

Read more »

Three satisfied miners with their arms crossed looking at the camera proudly
Resources Shares

Why are ASX 200 mining shares smashing the benchmark on Wednesday?

Rio Tinto, BHP and Fortescue shares are all charging higher today.

Read more »

Two miners standing together.
Resources Shares

Why is the South32 share price getting battered today?

ASX 200 investors are bidding down South32 shares today.

Read more »