The share price of S&P/ASX 200 Index (ASX: XJO) thermal coal giant New Hope Corporation Limited (ASX: NHC) is could be in for a big day after the company posted its first-half earnings.
New Hope's stock last traded at $4.90.
New Hope shares in focus as ASX 200 coal giant posts earnings
Here are the key takeaways from the coal producer's results for the six months ended 31 January:
- $668.6 million of net profit after tax (NPAT) – up 102% on the prior comparable period (pcp)
- $1.58 billion of revenue – a 54% jump on that of the pcp
- $1 billion of underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) – an 87.3% increase
- $983.5 million of net cash from operating activities – up 117%
- 30 cent per share, fully franked, interim dividend declared – a 76% lift on the pcp's offering
- 10 cent per share, fully franked, special dividend also declared
New Hope saw an average realised coal price of $467.40 a tonne over the first half – 143% more than the pcp. Though, the measure closed the period at $410 a tonne.
Meanwhile, the coal miner's revenue was dinted by lower sales due to weather and logistics impacts. At the same time, inflation and labour bolstered its costs.
The company's saleable coal production fell 28% year-on-year last half while its coal sales slumped 34%.
What else happened in the first half?
New Hope announced an on-market share buyback worth up to $300 million in November. That saw 5.7 million shares snapped up for $31.3 million last half.
The ASX 200 company later paused the buyback to complete a reverse bookbuild wherein it repurchased $75.8 million of its own senior convertible notes.
It ended the period with $971.2 million of cash.
What's next?
The coal favourite didn't provide any new guidance this morning. Though, it did note it's on track to post record earnings this financial year.
It also expects broad underinvestment in thermal coal will support the commodity's value going forward.
New Hope share price vs ASX 200
While the last 12 months have been glorious to the New Hope share price, 2023 so far has been disappointing.
The stock has tumbled 16% year to date. Though, it's still 67% higher than it was this time last year.
For comparison, the ASX 200 has fallen around 1% since the start of 2023. It's also 5% lower than it was 12 months ago.
