The Whitehaven Coal Ltd (ASX: WHC) share price is having yet another strong day.
In afternoon trade, the coal miner's shares are up 3% to $8.56.
This means the Whitehaven Coal share price is now up over 200% since the start of the year.
Why is the Whitehaven Coal share price rising today?
The catalyst for the rise in the Whitehaven Coal share price on Tuesday has been the release of the full year results of one of its rivals.
This morning New Hope Corporation Limited (ASX: NHC) released its full year results and revealed a 143% increase in revenue to $2.55 billion and a whopping 1,139% jump in net profit after tax to $983 million.
This allowed the coal miner to declare a fully franked 31 cents per share final dividend and a 25 cents per share special dividend. Combined, this was a massive 700% year over year increase from FY 2021's 7 cents per share final dividend.
The key driver of this impressive result was of course sky high coal prices. And with New Hope's management team suggesting that high prices are here to stay for the foreseeable future, this bodes well for New Hope and Whitehaven Coal.
New Hope commented:
Robust market demand for high energy and lower emission thermal coal, strengthened by the Russia-Ukraine conflict which has further tightened supply. With global energy demand to remain flat to 2030, stronger longer-term pricing is expected to remain considering constrained supply.
It's no wonder then that the team at Morgans is forecasting a $1.00 per share dividend from Whitehaven Coal in FY 2023.
This equates to a very generous 11.7% dividend yield even after the Whitehaven Coal share price heroics of 2022.
