Whitehaven Coal (ASX:WHC) Reports Strong H1 FY25 Performance
Financial Performance
Whitehaven Coal reported a half-year underlying net profit after tax (NPAT) of $328 million for H1 FY25, up from $379 million in H1 FY24. Underlying EBITDA rose to $960 million compared to $632 million in the previous year, driven by revenue growth to $3.4 billion from $1.6 billion. Cash generated from operations increased to $922 million from $523 million.
Operational Highlights
The company managed production of 19.4 million tonnes of run-of-mine (ROM) coal, a significant increase from 10.3 million tonnes in H1 FY24. Whitehaven achieved a total recordable injury frequency rate (TRIFR) of 4.9 and secured zero environmental enforcement actions. Revenue was supported by an average coal price of A$232/t.
Shareholder Returns
Whitehaven announced a fully franked interim dividend of 9.0 cents per share, payable on 14 March 2025. Additionally, the company will resume its share buy-back program, allocating up to $72 million over the next six months.
Future Outlook
The company remains confident in its operational strategies, focusing on cost reduction and inventory management. Whitehaven plans to return up to $144 million to shareholders through dividends and share buy-backs, representing a payout ratio of approximately 44% of the underlying NPAT for the half-year. The sale of joint venture interests in the Blackwater mine is expected to strengthen the balance sheet further.
Executive Comments
CEO Paul Flynn stated, “FY25 is the first full financial year of Whitehaven’s ownership of the Queensland operations at Daunia and Blackwater, and I’m delighted to report a strong first half result. Operational performance at Daunia and Blackwater – and across our NSW mines – has been in line with or better than plan, and demand for Whitehaven’s metallurgical and thermal coal products continues to prove strong.”
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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