Whitehaven Coal profit rockets 83% after Blackwater selldown
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The news: Whitehaven Coal has reported an 83% surge in full-year net profit to $649 million, boosted by the USD1.08 billion ($1.7 billion) selldown in its Blackwater mine last year.
The numbers: The coal producer’s profit topped last year's result of $355 million and came in above the market consensus estimate of $136.9 million, according to Visible Alpha.
Total revenue was 53% higher year on year at $5.83 billion, compared to $3.83 billion in the previous year, and in line with the expected $5.84 billion.
The miner declared full-year dividends of 15 cents per share, down from 20 cents last year, but above market forecasts of 14 cents.
The context: Whitehaven CEO and managing director Paul Flynn said the company successfully integrated its newly acquired Queensland operations at Daunia and Blackwater, with production, sales and costs meeting or exceeding guidance at the projects.
He noted that the miner saw a "cyclically weaker" second half to the year, and removed $100 million in annualised costs from Queensland by 30 June.
Flynn said thermal coal prices have been recovering since June, while metallurgical coal markets have stabilised.
The source: ASX
