The Whitehaven Coal Ltd (ASX: WHC) share price is leaping again today amid higher coal prices.
The Whitehaven share price has lifted to an all-time high of $8.83, a 4% gain on yesterday's close.
Let's take a look at why Whitehaven is having such a good day.
Rising coal prices
The Whitehaven share price is lifting after coal prices surged overnight. Whitehaven is a coal producer and exporter of thermal and metallurgical coal.
European coal prices lifted 7.6% to an all-time high of US$345 per tonne, Bloomberg reported. After Russia cut off gas supplies to Europe via the Nord Stream 1 pipeline, European nations are looking at alternative energy sources including coal.
For example, Greece is going to keep seven coal-fired power stations open for longer, Reuters reported overnight. Germany has previously indicated it will need to keep coal stations open to save gas.
Maria Rita Galli, CEO of Greece natural gas operator DESFA, said in comments cited by the publication:
In the short term some European countries will have a delay in their decarbonisation (plan), but this could also be an opportunity … allowing to avoid an intermediate phase towards hydrogen.
Whitehaven delivered a record net profit after tax (NPAT) of $1.95 billion in recent FY22 financial results.
Commenting on the impact of coal prices on these results, CEO Paul Flynn said, "Coal prices are at record levels and customers are focused on energy security now more than ever before."
Morgans has recently recommended that investors add Whitehaven to their portfolios.
Share price snapshot
The Whitehaven share price has soared 203% in the past year and is up 236% year to date.
In the past month, the Whitehaven share price has lifted 46%.
Whitehaven has a market capitalisation of nearly $8.4 billion.
