New Hope shares rise despite posting profit hit
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More news: Shares in New Hope Corporation climbed on the ASX, despite the coal miner reporting sharp declines in first-half profit and revenue due to weaker thermal coal prices.
New Hope shares were up 2.14% to $4.51 by 1:27pm AEDT.
Weaker coal prices weigh on New Hope profit
The news: Coal miner New Hope Corporation has reported a sharp drop in first-half profit as weaker coal prices weighed on the result.
The numbers: Statutory profit for the six months to 31 January 2024 fell 62.4% to $251.67 million, while net revenue dropped 46% to $856.57 million.
The company said the realised price for its thermal coal slumped 58% during the half year to $197 a tonne. It will pay an interim dividend of 17 cents a share, down from 30 cents a year ago.
The context: New Hope, which is majority owned by Washington H. Soul Pattinson, said disciplined cost control had helped it maintain margins despite coal prices retreating from record highs.
Thermal coal prices have slid on waning demand in China and India and rising supplies. Chief executive Rob Bishop said the company’s 13.4 million tonnes per annum growth project at the Bengalla Mine in NSW is on track, and unit costs are likely to decline as production increases in the second half of the financial year.
The source: ASX announcement
