Yancoal Australia Ltd reported a significant decline in after-tax net profit for 2023, despite achieving higher production volumes, according to the company.
Its profit fell 49% to A$1.81 billion ($1.20 billion), compared to A$3.58 billion in 2022, while the revenue slid 26% to A$7.77 billion from a record A$10.55 billion in the previous year.
Despite increased coal output, the profit decline was primarily attributed to a decrease in coal prices, with its average sales price down 39% from A$378/t in 2022 to A$232/t.
The company achieved its saleable coal production target for 2023, witnessing a 12% year-on-year rise to 43.6 million tonnes on a 100% basis, and a 14% increase to 33.4 million tonnes on an attributable basis.
Despite the decline in profit, Yancoal Australia successfully became debt-free in March 2023 and maintained a healthy cash balance of A$1.39 billion at the end of the year, down from A$2.69 billion in 2022. The company plans to distribute $429 million in dividends to shareholders.
The production of thermal coal grew 15% on the year, while metallurgical coal output remained steady. Notably, China emerged as a large consumer, accounting for 29% of Yancoal's coal sales volume in 2023.
Looking ahead, Yancoal Australia expects to maintain its positive operational momentum in 2024, anticipating continued production growth and potentially lower operating costs. The company maintains its saleable coal production guidance for 2024 in the range of 35.0-39.0 million tonnes.
However, the coal market's future trends remain uncertain, with short-term prices likely impacted by seasonal and temporary factors.
(Writing by Riley Liang Editing by Harry Huo)
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