Whitehaven shares lose 5% despite $2.7b profit

The news: Whitehaven Coal shares have dropped, despite the company posting a $2.7 billion profit, up 37% on FY22 on the back of record coal prices.

The numbers: Whitehaven achieved record revenue of $6.1 billion despite reduced production with an average coal price of $445/t, compared to $325/t the year before. It declared a fully franked final dividend of 42 cents to be paid in mid-September, lifting the full year dividend to 74 cents per share. Shares had tumbled 4.8% by 12:15pm AEST, however, after Whitehaven failed to provide financial guidance for 2024 and only providing a production forecast.

The context: Russia's invasion of Ukraine led to a massive spike in energy and commodities prices in the months after February 2022. The price of coal has since returned to levels seen before the conflict, but Whitehaven maintains demand for both thermal and coking coal remains strong.