New Hope Group (ASX:NHC) Reports H1FY25 Results
Financial Performance
New Hope Group reported a 22% increase in underlying EBITDA to $517 million for the first half of FY25. Net profit after tax (NPAT) rose by 35% to $340 million. Cash from operating activities surged by 143% to $317 million, highlighting cash generation.
Operational Highlights
The company achieved significant operational growth with a 56% increase in ROM coal production to 8.3 million tonnes and a 33% rise in saleable coal production to 5.4 million tonnes. Coal sales also grew by 44% to 5.4 million tonnes, driven by higher production and lower unit costs.
Shareholder Returns
New Hope Group declared a fully franked interim dividend of 19 cents per ordinary share, marking a 22% increase from the previous period. Additionally, the company announced a share buy-back of up to $100 million to reduce shares on issue at an attractive price.
Safety Performance
The Total Recordable Injury Frequency Rate (TRIFR) improved to 4.08, a 18% decrease from the previous period. This improvement reflects the company’s ongoing focus on safety and wellbeing.
Capital Management
The company is investing approximately $400 million in growth capital at New Acland Mine and has revised its sustaining capital guidance for Bengalla Mine down to $185 million – $225 million for FY25. These investments support New Hope’s strategy of enhancing production and maximizing shareholder returns.
Motley Fool contributor Abbie Stokes 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 recommended BHP Group. 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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