New Hope has announced an on-market share buy-back of up to $100 million after posting impressive results in the first half of the 2024–25 financial year (FY25).
The news comes as the company declared a fully franked interim dividend of $0.19 per share, up from $0.17 in the prior corresponding period.
“The board carefully considers a range of methods to return surplus capital to shareholders, and seeks to action those which maximise value,” New Hope chair Robert Millner said.
“The company expects ongoing cash generation from its operations as we execute our targeted coal production increases, which provides important energy security to our customers and the regions they service.
“We believe the buy-back will benefit all our shareholders via a reduction in the number of shares on issue, thereby supporting the company’s return on equity, earnings per share and dividend per share, for all shareholders who continue to hold shares in the company.”
New Hope also increased its equity interest in Malabar Resources to 22.97 per cent, further expanding its exposure to high-quality metallurgical coal.
The company has also posted a strong first-half performance for FY25, with increased production and lower costs driving higher earnings and shareholder returns.
The company reported a net profit after tax of $340.3 million, a 35 per cent increase from the prior corresponding period (31 January 2024: $251.7 million), with underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) rising to $517.3 million, up from $424.8 million a year ago.
Group saleable coal production climbed 32.9 per cent to 5.4 million tonnes (Mt), reflecting the success of New Hope’s organic growth strategy.
Meanwhile, disciplined cost control saw free on rail (FOR) cash costs fall by 23.5 per cent to $55.5 per tonne.
“We have had a strong first half, with our Bengalla mine now operating at 13.4 million tonnes per annum (Mtpa) capacity and New Acland mine now having a clear runway to achieving 5Mtpa run rate by 2027,” Bishop said.
“Earnings are up compared to the first half of 2024, even as the coal price has declined, thanks to our continued focus on cost control and execution of our organic growth plans.
“As a result of this performance, we are able to return value to shareholders by way of a fully franked interim dividend of 19.0 cents per ordinary share. In addition, we are pleased to announce the start of an on-market share buy-back of up to $100 million.”
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