Yancoal clocks $600m profit drop as revenue slides
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The news: Yancoal reported a drop in annual profit as coal prices weighed on the sector in 2024.
The numbers: Yancoal’s profit after tax for 2024 dropped by $603 million to $1.2 billion in 2024, a 38% decline from 2023.
The miner reported revenue of $6.86 billion, a 10% year-on-year drop. Yancoal said the fall is tied to a 14% increase in attributable coal sales and a 24% decrease change in coal prices to $176 per tonne.
Yancoal said it delivered on its 2024 guidance, producing 36.9 million tonnes of coal at $93 per tonne, noting a particularly strong second half which saw 20 million tonnes at $86 per tonne.
The context: Despite the revenue and profit declines, the company announced a final dividend of $687 million, signalling a focus on shareholder returns.
While noting the challenge of cost inflation in the coal sector, the company also said it aims to replicate FY24 performance in 2025, and will retain the same production and cost guidance as last year. Yancoal flagged a potential drop in output for 1Q 2025 due to mine plan sequencing and noted that maintaining flat operating costs in an inflationary setting in 2025 would be a positive outcome.
Yancoal also announced the appointment of three new non-executive directors, Jiuhong Wang, Zhiguo Zhao, and Ang Li, effective 20 February 2025.
What they said: The company said: “Yancoal has a proven history of growth through acquisition and expansion. After making the dividend payment, we will still be in a position to pursue growth opportunities for the benefit of our shareholders.”
The sources: ASX announcement, ASX board appointments statement
