25 August 2022

Full Year Results FY22

FY22 Results ASX announcement

 

FY22 Results CEO video message

 

FY22 Results presentation

 

Appendix 4E and Annual Financial Report

 

Annual Report 2022

 

Sustainability Report 2022

 

Record earnings and shareholder returns, and a strong balance sheet, underpinned by record coal prices and solid operational performance

Whitehaven Coal (ASX:WHC) has reported a record net profit after tax (NPAT) of $2.0 billion for the year ended 30 June 2022, and earnings before interest, tax, depreciation and amortisation (EBITDA) of $3.1 billion, which is a significant increase on the $204.5 million of EBITDA in the prior year.

Whitehaven’s FY22 results highlights also include:

• An 8% improvement in safety performance as measured by a total recordable injury frequency rate (TRIFR) of 5.4
• Run-of-mine (ROM) managed production volumes of 20.0M tonnes, which was within guidance range
• Record revenue of $4.9 billion underpinned by an achieved average coal price of A$325/t (compared with $1.56 billion revenue and A$95/t average price in the prior year)
• Cash generated from operations of $2.6 billion compared with $169.5 million in the prior year.

During FY22, all senior bank debt was repaid and $1.0 billion of net cash was held on the balance sheet at 30 June 2022, versus $808.5 million of net debt at 30 June 2021.

A fully franked final dividend of 40 cents per share will be paid on 16 September, taking the full year dividend to 48 cents per share.

After announcing a 10% on-market share buy-back in February 2022, 76.37 million shares (or ~7% of issued share capital) were bought back in H2 FY22 for an average price of $4.75 and a total investment of $362.6 million. In H1 FY23, Whitehaven aims to complete the 10% buy-back within the previously announced cap of $550 million. The Board will seek shareholder approval to increase its share buy-back programme at the Company’s Annual General Meeting in October.

The aggregate of the interim and final dividends totalling $449 million and the $550 million buy-back represents a total payout ratio of 51% of FY22 NPAT, which is in line with the Company’s policy.

Commenting on market conditions and Whitehaven’s FY22 results, Paul Flynn, CEO & Managing Director said:

“The longer-term under-investment in energy sources needed to supply baseload capacity to growing populations and economies has contributed to a widening gap between supply and demand. In FY22, we saw global energy shortages intensify as a result of the tragic conflict in Ukraine and associated sanctions against Russian coal and gas.

“Coal prices are at record levels and customers are focused on energy security now more than ever before.

“We have worked hard to position ourselves to maximise the opportunity arising from historically high prices. We achieved a record realised average price of A$325 per tonne in FY22, compared with A$95 per tonne in the prior year.

“Despite COVID related absences, labour constraints and weather interruptions, our team delivered solid operational and product quality improvements in FY22.

“Pleasingly our safety results also reflected the improved operational performance and focus of our people. In FY22 we reported a recordable injury frequency rate of 5.4, which was 8% better than last year and compared to where we were five years ago – represents a 22% improvement.

“With the significant increase in Whitehaven’s earnings including a $2 billion NPAT, and exceptionally strong operating cash flows, we are maintaining a disciplined approach to capital allocation to build business resilience and deliver shareholder value in the near- and longer-term.

“We are successfully executing a 10% on-market buy-back programme and we are commencing paying fully franked dividends.

“With strong cash flows expected to continue, we will use capital to maintain and optimise our existing operations, retain cash on the balance sheet for future optionality, and return surplus capital to shareholders through franked dividends and share buy-backs.”

Commenting on FY23 market outlook and guidance, Mr Flynn added:

“Demand for high-quality seaborne thermal coal is expected to remain strong throughout FY23 and high-CV coal prices should continue to be well supported.

“We expect to deliver higher ROM production and coal sales in FY23 compared with FY22, and we are focused on maximising margins including managing inflationary cost pressures.

“We will also continue to progress and refine plans for our Vickery and Winchester South development projectsin FY23 to position the company to bring on additional capacity if the Board determines appropriate returns can be delivered.”

 

 

 

 

 

 

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