S&P/ASX 200 Index (ASX: XJO) coal shares have been on an upwards trajectory lately, leading these market favourites to peak at near-10-year highs today.
The Whitehaven Coal Ltd (ASX: WHC) share price lifted to its highest point since 2011 today – touching $6.19 in afternoon trade.
Meanwhile, shares in New Hope Corporation Limited (ASX: NHC) surged to trade at $4.52 today – the highest the stock has been since October 2012.
Shares in the coal companies have now gained 123% and 92% respectively year to date. For comparison, the S&P/ASX 200 Energy Index (ASX: XEJ) leapt nearly 24% this year while the ASX 200 has slumped 12%.
Let's take a look at what's been behind ASX 200 coal shares' recent strong performance.
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What's driven these ASX 200 coal shares to 10-year highs?
There's a reason behind ASX 200 coal producers' recent brilliant performance. And it's a simple one.
The price of coal has rocketed in 2022, driven higher by an energy crunch brought about by Russia's invasion of Ukraine.
Newcastle coal futures are currently trading at US$396.05 a tonne, according to Trading Economics. That's 133% higher than it was at the end of 2021 and around 9% lower than its record high of US$435 a tonne.
On that note, Whitehaven expects to report "its strongest ever" earnings for financial year 2022.
It's flagged that its full year earnings before interest, tax, depreciation, and amortisation (EBITDA) could come in at a whopping $3 billion yesterday. That's up from just $200 million in financial year 2021.
The positive outlook saw the Whitehaven share price lift 5% yesterday while that of New Hope gained nearly 3%.
And growing expectations China could soon welcome back Australian coal exports have also likely bolstered the ASX 200 coal shares.
No doubt all eyes will be on the energy giants when they release their full year earnings later this year.
