Australia's Whitehaven Coal posted a 91% plunge in first-half profit on February 20 due to soft thermal coal prices and production curbs at its flagship Maules Creek mine, sending its shares to a more than three-year low. Whitehaven shares slumped as much as 9.3% to A$2.14 in early trade, while the broader Australian benchmark rose 0.5%.
Lower thermal coal prices and falling China demand dented Whitehaven's earnings, while labour shortages, dust from drought and bushfire smoke hit production at its New South Wales mine.
Net profit for the first-half ended December 31, 2019 fell to A$27.4 million ($18.3 million) from A$305.8 million a year earlier, Australia's largest independent coal producer said in a statement.
Last month, Whitehaven posted a 44% drop in second-quarter saleable coal production due to falling output at Maules Creek.
The company declared an interim dividend of 1.5 cents a share, down from 20 cents a share last year.
"The payment of a modest dividend reflects our confidence in the fundamentals of the business and the prospects of a stronger second half," Chief Executive Officer Paul Flynn said.
(Writing by Tammy Yang Editing by Jessie Jia)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.