15 February 2024

Half Year Results FY24

ASX announcement

 

CEO video message

 

Results presentation

 

Appendix 4D and Interim Financial Report

 

Solid production at open cut mines and resilient pricing underpin H1 FY24 results; acquisition completion and integration planning progressing well

Whitehaven Coal (ASX:WHC) reports a half year underlying net profit after tax (NPAT) of $372.3 million for the six months ended 31 December 2023, before $114.7 million of acquisition related expenses including an unrealised FX loss (post tax), and underlying earnings before interest, tax, depreciation and amortisation (underlying EBITDA) of $622.8 million¹.

Whitehaven’s H1 FY24 results also include:

• A 16% improvement² in safety performance as measured by a total recordable injury frequency rate (TRIFR) of 3.96 for the six months to 31 December 2023 and zero environmental enforcement actions³
• Run-of-mine (ROM) managed production of 10.3M tonnes, compared with 8.8M tonnes in H1 FY23
• Revenue of $1.6 billion underpinned by an achieved average coal price of A$220/t⁴
• $163.8 million of acquisition related transaction and transition costs (pre-tax) including $71.4 million of unrealised FX losses relating to the re-translation of US$ cash and the US$100m deposit held for settlement at completion of the acquisition
• Statutory NPAT of $257.6 million after acquisition related expenses
• Cash generated from operations of $523.2 million.

Whitehaven held $1.5 billion of net cash on the balance sheet as at 31 December 2023 and has agreed terms with a range of financiers for a 5-year credit facility of US$1.1 billion, which will underpin the upfront payment of US$2.0 billion on completion of the acquisition, expected on 2 April 2024. A fully franked interim dividend of 7.0 cents per share will be paid on 8 March 2024.

Commenting on Whitehaven’s results and current priorities, Paul Flynn, CEO & Managing Director said:

“In the first half of FY24, high-CV thermal coal prices moderated but remained resilient, as energy security is a priority for power utilities globally. Whitehaven achieved a realised average price of A$220 per tonne in the half year.

“The open cut operations performed consistently well in the half year with good mining conditions and an easing of labour shortages. Our Narrabri underground mine experienced adverse geological conditions, which impacted productivity.

“Whitehaven’s safety and environmental results continue to improve with zero environmental enforcement actions and a total recordable injury frequency rate of 3.96 for the half year representing a 16% improvement on FY23.

“The program of work to complete the acquisition of Daunia and Blackwater mines and transform Whitehaven into a metallurgical coal business is progressing well. People across our existing operations and the new businesses are highly motivated as integration planning continues and milestones are met.

“The US$1.1 billion 5-year credit facility, together with US dollar cash on the balance sheet, will be used to fund the upfront payment for the acquisition. Ongoing cash flows being generated by the business will provide additional liquidity. Subject to receiving required regulatory and merger control approvals, we expect completion in early April 2024.”

 

 

¹ Before $163.8 million of pre-tax acquisition-related costs including FX translation impacts

² Compared with FY23 TRIFR of 4.74

³ EEAs include penalty infringement notices, enforceable undertakings, suspensions, prevention notices and prosecutions

⁴ Sales of produced coal, excluding coal reservation sales

 

 

 

 

 

 

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