The New Hope Corporation Ltd (ASX: NHC) share price is in focus after the company delivered underlying EBITDA of $214.8 million and declared a 10-cent fully franked interim dividend for the first half of FY26.
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What did New Hope Corporation report?
- Underlying EBITDA of $214.8 million, down 58.5% from the prior period
- Net profit after tax of $54.3 million, an 84.0% decline year-on-year
- Saleable coal production rose slightly to 5.5Mt
- Net cash flow from operating activities was $185.0 million
- Available cash stood at $616.8 million
- Fully franked interim dividend of 10.0 cents per share, with dividend reinvestment plan in place
What else do investors need to know?
The company continues to progress its organic growth strategy, including increased equity in Malabar Resources to nearly 26%, broadening its position in high-quality metallurgical coal. Operations at the Bengalla Mine were impacted by prior weather events, but production is expected to return to the 13.4Mtpa run-of-mine coal rate in H2 FY26.
New Acland Mine production continued to ramp up, with access to the third pit (Manning Vale West) scheduled for late 2026. This step should further increase personnel and production, underlining New Hope's focus on long-life, low-cost assets.
What did New Hope Corporation management say?
Chief Executive Officer Rob Bishop said:
The Group achieved 5.5Mt of saleable coal production for the half year, which was supported by the continued ramp up of production at New Acland Mine.
In a lower coal price environment, our assets remain resilient and continue to generate solid margins.
As a result of our performance, we are able to reward shareholders with a fully franked interim dividend of 10.0 cents per ordinary share.
Looking ahead, Bengalla Mine is expected to return to the 13.4Mtpa ROM coal production rate (100 per cent basis) during the second half of the 2026 financial year. In addition, New Acland Mine will continue to ramp up production and is scheduled to begin mining activities in the Manning Vale West pit during the final quarter of the 2026 calendar year.
What's next for New Hope Corporation?
New Hope aims to get Bengalla back to full production and further increase output at New Acland as Manning Vale West comes online. The dividend reinvestment plan and ongoing on-market share buy-back show a commitment to returning value to shareholders.
Management's disciplined capital management and continued investment in long-life assets provide a stable foundation as the company navigates lower coal prices and focuses on sustainable, low-cost production.
New Hope Corporation share price snapshot
Over the past 12 months, New Hope Corporation shares have risen 43%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.
