Whitehaven coal
20 January 2023
Dec 2022 Quarter Production Report – solid Narrabri performance and strong sales deliver a record half year financial result despite weather affected open cut operations
Highlights
- Whitehaven achieved an average coal price of A$527/t for the quarter,¹ compared with A$581/t in the September quarter (A$211/t in prior corresponding period) to deliver a record average H1 coal price of A$552/t.
- Subject to final audit, Whitehaven expects to report an H1 FY23 EBITDA on 16 February of approximately $2.6 billion (compared with $0.6 billion in H1 FY22).
- December quarter managed run-of-mine (ROM) production of 4.8Mt, up 21% on the September quarter (up 50% on pcp).
- December quarter total equity sales of produced coal of 3.4Mt, up 16% on the September quarter (up 20% on pcp); managed sales of produced coal of 4.3Mt, up 16% on the September quarter (up 21% on pcp) and 8.0Mt for the half year up 3% on pcp.
- Cash generated from operations2 of ~$1.0 billion in the December quarter and ~$2.5 billion in H1 FY23.
- Whitehaven held a net cash position of $2.5 billion3 as at 31 December 2022.
- During the December quarter, 40.1 million shares were bought back for $367 million; since the commencement of the share buy-back program4 in March 2022, a total of 143.4 million shares have been bought back for $955 million.
Comments from Whitehaven Coal Managing Director and CEO Paul Flynn:
“During the December quarter, we maintained strong operational performance at our Narrabri underground mine which helped offset the impact of continued wet weather on volumes from our open cut mines.
“Strong ongoing demand for high CV coal, coupled with supply constraints, underpinned high prices, a solid December quarter and an exceptional first half result.
“We generated $2.5 billion of cash from operations in the half year, including $1.0 billion in the December quarter. At the end of December, we held a net cash position of $2.5 billion.
“The Company is performing well and delivering strong returns for our shareholders including buying back $593 million of shares in the first half of FY23.
“Energy security remains a key imperative for our customers throughout Asia, and we are continuing to supply high quality coal through the energy transition for the benefit of all stakeholders.”
Read the full December 2022 Quarter Production Report here.
¹Before applicable royalties.
2Before interest and income tax.
3~$550 million of tax in relation to FY22 is forecast to be paid in February 2023; PAYG income tax payments to commence in June quarter.
4Includes initial 10% share buy-back of 103.3 million shares for $587.9 million, together with 40.1 million shares bought back for $367.4 million representing a further 4.3% since 26 October 2022 as part of shareholder approved buy-back of up to 240 million shares.