15 August 2019

Record full year results FY19

Financial performance

Whitehaven Coal, the leading Australian producer of premium thermal and metallurgical coal, has reported a record net profit after tax before significant items of $564.9 million for FY2019.

Key financial performance metrics improved on the previous corresponding period (pcp):

Sales revenue of $2,487.9 million, up 10%;
Underlying EBITDA of $1,041.7 million, up 3%;
Cash generated from operations of $964.1 million, up 4%;
Net debt reduced to $161.6 million (excluding IFRS 16 lease liabilities) at 30 June 2019 with gearing at 4%;
The Board has proposed to pay a dividend of 30 cents per share to shareholders to be comprised of an ordinary dividend of 13 cents per share, franked to fifty percent and a special dividend of 17 cents per share, unfranked; and
Unit costs averaged $67/t in the full year modestly lower than the first half result with the rise for the full year due to a combination of factors including higher fuel prices, the high quality product strategy and the continued impact of short and medium term factors that were noted at the half year.

Operating performance

Whitehaven produced a record 23.2Mt of ROM coal in FY2019 on a managed basis. Importantly, this was accomplished with an improved TRIFR for the year of 6.2, reflecting our belief that production growth is not sustainable unless it is accompanied by a strong safety focus.

Equity ROM and saleable coal production were 18.4Mt and 15.8Mt, respectively for FY2019 with coal sales including purchased coal reaching 17.6Mt, a record for the company. Costs of $67/t were in line with guidance for the year.

Whitehaven will release its 2019 Sustainability Report, including its responses to the recommendations of the Task Force on Climate-Related Financial Disclosures, in September.

Economic and social contribution

During the year Whitehaven and its Joint Venture partners made significant contributions to the economies of New South Wales (NSW) and the northwest NSW region, including:

$225.9 million paid to the NSW Government in mining royalties and a further $97.9 million paid in a range of taxes to state and federal governments;
$333.9 million spent with local businesses including $1.8 million with Indigenous businesses;
Donated $515k to local community groups including $60k for drought relief in the local region;
Moved all local suppliers to industry-leading, 21-day payment terms;
Committed $500k over three years to restore and preserve the gardens of the Kurrumbede homestead, once owned by the family of Dorothea Mackellar OBE.

Commenting on today’s record results, Whitehaven Coal Managing Director and CEO Paul Flynn said:

“It is great to have delivered another record year of profit and continue a pattern of strong and consistent financial returns.

This year’s record distribution and our full year payout ratio of 88% of NPAT before significant items honours our prior commitment to return surplus cash to shareholders.

With significant positive cash flow generated across the portfolio and debt all but eliminated, we are putting our strong balance sheet to work, progressing our two key development projects and investing in technology and expansion initiatives at our existing operations.

We are fast approaching a key transformation point in the evolution of Whitehaven that will give rise to a larger, more efficient and better-integrated enterprise, well positioned to take advantage of the demand for high quality coal in the Asian region.”

The full documents regarding the result can be found below:

Full Year Financial Results FY19 Release

Full Year Results FY19 Presentation

Appendix 4E and FY19 Annual Financial Report

Listen to the full Investor Conference Call here.

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