New Hope shares climb as first-half profit soars
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More news: New Hope shares jumped at market open after the coal miner notched a 35% rise in first-half net profit and hiked its interim dividend.
New Hope shares were up 6.5% to $3.94 at 10:40am AEDT, having retreated by more than 20% since the turn of the year.
New Hope lifts HY profit and dividend, unveils $100m buyback
The news: Coal miner New Hope Corporation reported a 35% rise in first-half net profit to $340.3 million, and increased its interim dividend, with the completion of its Bengalla growth project in New South Wales lifting production.
New Hope also unveiled an on-market buyback of up to $100 million as part of the company's capital management program.
The numbers: The miner declared a fully franked interim dividend of 19 cents per share, up from 17 cents per share a year ago.
Saleable coal production grew 32.9% year on year to 5.4 million tonnes, driven by Bengalla and the ramp-up of its New Acland mine.
The context: New Hope noted that it increased its equity interest in Malabar Resources during the half, growing exposure to high-quality metallurgical coal.
CEO Rob Bishop said that the miner grew earnings, compared to the prior-year period, even as the coal price declined, due to a focus on cost control and progress in its organic growth plans.
The company said the $100 million buyback "represents an opportunity to enhance the value of the remaining shares in issue."
What they said: "We believe the buyback will benefit all our shareholders via a reduction in the number of shares on issue, thereby supporting the company's return on equity, earnings per share and dividend per share, for all shareholders who continue to hold shares in the company," New Hope chairman Robert Millner said.
The source: ASX
