Whitehaven Coal has delivered solid financial results for the first half of the 2024–25 financial year (FY25) while Yancoal ended 2024 on a high, reflecting strong operational performance and resilience in a dynamic market.
Whitehaven
Whitehaven benefited from disciplined cost management and robust coal demand in the first half of FY25 as the company remains focused on operational efficiency and strategic growth initiatives, including its recent acquisitions.
The acquisition of BHP’s Daunia and Blackwater mines has further strengthened Whitehaven’s position, increasing production capacity and broadening its asset portfolio.
The company delivered 19.4 million tonnes of run-of-mine (ROM) production, a substantial increase from the 10.3 million tonnes delivered in the the first half of FY24.
“Whitehaven is benefiting from increased scale and diversification into metallurgical coal, and the structure of the (Daunia and Blackwater) acquisition including deferred payments, coal-price contingent payments and the sell down of 30 per cent of Blackwater is creating value for Whitehaven’s shareholders,” Whitehaven chief executive officer (CEO) Paul Flynn said.
“Whitehaven will return up to $144 million of capital to shareholders through a nine per cent fully franked interim dividend and a modest share buy-back of equal value over the next six months. This represents a total payout ratio of 44 per cent of underlying group NPAT (net profit after tax) for the half year.
“The board will be well placed to review Whitehaven’s capital allocation framework at the end of FY25 when we have seen a full year of cash flows from the larger business and received the $US1.08 billion of proceeds from the Blackwater sell down.”
Yancoal
Yancoal has delivered on its 2024 guidance, producing 36.9 million tonnes of saleable coal for the year, a 10 per cent increase from 2023.
“This is the result of the ongoing concerted efforts of all our operations and logistics personnel, and is a great credit to them all,” Yancoal acting CEO Ning Yue said.
“The second half was particularly strong delivering 20 million tonnes at $86 per tonne. We aim to replicate the 2024 operational performance in 2025.”
Yue acknowledged inflation is a constant challenge in the coal sector, but said the company benefited from its ability to target flat unit costs – a result of continual optimisation and reinvestment in its assets.
“During the year, we produced an operating EBITDA (earnings before interest, taxes, depreciation, and amortisation) of close to $2.6 billion at a 37 per cent margin,” Yue said.
“This put the group in a strong financial position. We held almost $2.5 billion in cash at the end of the year.”
Both Whitehaven Coal and Yancoal are well-positioned to capitalise on ongoing global energy demand, particularly in key Asian markets.
With both companies focusing on operational excellence, strategic investments and financial discipline, it will ensure they remain key players in the industry.
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