New Hope Corporation boosts coal output and earnings in latest quarterly report

New Hope Corporation boosted quarterly coal output and EBITDA, rewarding shareholders with a $126.4 million fully franked dividend.

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Key points

  • New Hope Corporation achieved a 7.1% increase in saleable coal production and a 15.5% rise in underlying EBITDA to $107.9 million, with coal sales and prices also improving.
  • The company enhanced output at Bengalla Mine while finalising the exit from oil and gas by selling Bridgeport Energy and increasing its stake in Malabar Resources to focus on coal assets.
  • For FY26, New Hope aims for increased coal production, with strategic capital initiatives including an on-market buy-back and a new Dividend Reinvestment Plan, while planning further developments at Bengalla and New Acland Mines.

The New Hope Corporation Ltd (ASX: NHC) share price is in focus after the company lifted quarterly saleable coal production by 7.1% and reported a 15.5% increase in underlying EBITDA to $107.9 million.

What did New Hope Corporation report?

  • Saleable coal production rose 7.1% to 2.7 million tonnes for the quarter
  • Underlying EBITDA up 15.5% quarter-on-quarter, reaching $107.9 million
  • Coal sales grew 11.6% to 2.68 million tonnes
  • Average realised sales price strengthened to $136.6 per tonne, up 3.4%
  • Fully franked final FY25 dividend of 15 cents per share ($126.4 million) paid
  • Available cash balance stood at $544.3 million post-dividend

What else do investors need to know?

During the quarter, New Hope benefited from favourable weather and improved logistics, which supported higher prime waste movement and stronger output at Bengalla Mine. Notably, Bengalla's saleable coal production jumped almost 24% quarter-on-quarter as port and rail congestion eased, although New Acland Mine production dropped due to a focus on prime waste movement.

The company finalised the sale of Bridgeport Energy, marking its exit from oil and gas. New Hope also increased its stake in Malabar Resources to 25.97%, investing $36.1 million to bolster its interests in high-quality coal assets.

What's next for New Hope Corporation?

For FY26, New Hope is guiding for saleable coal production between 10.2 and 11.5 million tonnes, with both Bengalla and New Acland Mines expected to contribute more as operations ramp up. The company highlighted robust capital management, with a continuing on-market buy-back and a new Dividend Reinvestment Plan for eligible shareholders.

Management indicated Bengalla is on track to return to its targeted production run-rate in the second half of FY26. At New Acland, mining at Manning Vale West is scheduled to commence in 2027, while ongoing capital works and local stakeholder collaboration remain a focus.

New Hope Corporation share price snapshot

The New Hope Corporation share price has declined 13% over the past 12 months, underperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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