New Hope Corp Net profit of A$330.4 million in the first half compared to a loss of A$55.4 million the previous year

By Rhiannon Hoyle

Australian coal miner New Hope Corp. said it returned to profit in the first half and declared a special dividend after benefiting from higher commodity prices.

The company reported net profit of A$330.4 million ($244 million) for the six months to January. It recorded a loss of A$55.4 million in the same period a year earlier.

The directors declared an interim dividend of 17 Australian cents per share, as well as a special dividend of 13 Australian cents. Both dividends are fully franked. This reflected its “strong cash build, near-term price outlook and the company’s generous postage credit balance,” New Hope said.

Revenue more than doubled from the year-ago period, New Hope said, enabling it to fully repay debt from operating cash flow.

The miner reported an increase in average realized prices to A$192.38 per metric ton from A$77.98 per ton a year earlier. Prices rose during the half-year, to a closing realized price of A$236.66 per tonne, New Hope said.

The miner said it also benefited from the cost control measures it implemented in response to earlier price weakness.

New Hope said it expects demand for high-quality, low-emission thermal coal to remain strong in the short to medium term as supply is tight.

“This continued shortage is expected to keep prices at levels not seen before,” New Hope said. “Combined with disciplined cost control, ensuring that operating costs remain in the lowest cost quartile relative to other marine thermal coal producers, the company will continue to generate exceptional returns for shareholders.”

Write to Rhiannon Hoyle at [email protected]

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