Yancoal 1H profit down 44%, as coal price returns to earth

The news: China-controlled coal miner Yancoal has posted a $973 million half-yearly profit, down 44% from $1.74 billion a year earlier, due to lower coal prices and a hefty tax bill.

The numbers: Yancoal's total revenue was down 17% to $4 billion on 1H22, and the miner earned an average realised price of $278/t, down 11%, as supply in energy markets recovered. It also paid a tax bill of $1.7 billion in the first half of 2023. Yancoal will issue a fully franked interim dividend of 37 cents.

The context: Coal prices have fallen more than 60% this calendar year after thermal and coking coal prices surged on supply issues rooted in the pandemic and exacerbated by the Russia-Ukraine war. Yancoal has $1 billion in cash, no external debt and is reported to be a frontrunner to acquire BHP's Queensland coal mines.