Yancoal posts 1H profit decline but bolsters production
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The news: Dual ASX and Hong Kong Stock exchange-listed coal producer Yancoal has reported a 61% decrease in half-year profit after tax to $163 million for 2025 on weak coal prices.
The numbers: Yancoal’s half-year profit after tax was down from the $420 million reported last year. EBITDA was also 40% lower at $595 million, compared to $991 million in the first half of 2024.
Yancoal saw a 16% increase in ROM coal production to 32.2 million tonnes, compared to the previous quarter and maintains a $1.8 billion cash balance after paying an interim dividend of $82 million ($0.0620 per share).
Attributable saleable coal production for the first-half rose 11% from the year prior to 18.9 million tonnes, annualising above the guidance range mid-point.
Revenue fell 15% from 1H 2024 to $2.68 billion, following a 15% decrease in realised coals price to $149 per tonne and a 2% decrease in attributable sales volume.
The context: In a release published on Tuesday, Yancoal said that it has delivered the highest first-half production performance of the past five years and posted an 8% decrease in its cash operating costs.
The miner said that the past six months has seen elevated global supply and subdued demand in both thermal and metallurgical coal markets and while geopolitical instability have influenced speculative trading activity, underlying demand has not been impacted.
As some supply-side responses to the lower coal prices are beginning to emerge, Yancoal anticipates “further supply-side reductions from higher-cost producers, contributing to a potential recovery in coal price indices, similar to previous coal price cycles. Such a price recovery could bolster our financial performance over the next twelve to eighteen months.”
The source: Yancoal 1H 2025 results
