Australian miner Whitehaven Coal Ltd. experienced a sharp year-on-year decline of 86% in its net profit after tax to A$257.6 million (around $167 million) during the first half of FY2024 (July-December 2023), showed a company statement on February 15.
The company's revenue also witnessed a 58% decrease from the previous year to A$1.58 billion during the given period. This drop was influenced by lower thermal coal prices, acquisition-related expenses, and the depletion of reserves at the Werris Creek mine.
The integration of the forthcoming Blackwater and Daunia acquisitions is a crucial step in the company's transformation into a prominent metallurgical coal producer.
Whitehaven Coal plans to shift its revenue structure, with expectations of 70% of revenue coming from metallurgical coal and 30% from thermal coal (currently 10% and 90%, respectively).
Despite the decline in profits, the company maintains a robust financial position, possessing a net cash reserve of A$1.5 billion and having access to a credit facility of $1.1 billion.
Looking ahead, Whitehaven Coal maintained its production guidance unchanged at 18.7-20.7 million tonnes for FY2024 and managed sales are predicted to be 16.0-17.5 million tonnes.
The company expects to generate its first revenue from the Vickery thermal coal mine later in 2024, offsetting the closure of the Werris Creek mine.
(Writing by Riley Liang Editing by Harry Huo)
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