Whitehaven shares tank on profit slide
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More news: Whitehaven shares dived more than 6% after the company reported a major earnings drop for the first half of the financial year.
Shares were trading at $7.04 on the ASX at 1:30pm AEDT, as the market responded to an 86% profit fall and a reduced interim dividend of 7 cents per share.
Whitehaven profit sinks 86%, cuts dividend
The news: Whitehaven Coal reported a major earnings drop for the first half of the financial year, as lower coal prices saw net profit plunge 86% compared to last year.
The numbers: Whitehaven's statutory net profit after tax fell from $257.6 billion to $1.78 billion, with revenue down 58% to $1.589 billion compared to the prior corresponding period (pcp).
Underling profit, which excludes after-tax expenses of $114.7 million partially attributed to BHP's purchase of its Daunia and Blackwater coal mines last year, dropped 79% from the pcp to $372 million.
The company declared a fully-franked interim dividend of 7 cents per share, down from 42 cents in FY23, which will be paid on 8 March.
The context: Whitehaven commented that its coal production is tracking within its guidance for the full financial year, set at 18.7 million tonnes to 20.7 million tonnes.
CEO Paul Flynn said that in the first half high-CV thermal coal prices "moderated but remained resilient" as energy security is prioritised for power utilities globally. Whitehaven said it achieved a realised average price of $220 per tonne in the six months to December 2023.
The source: ASX announcement
