Whitehaven Coal is expecting to report an estimated total earnings of $3 billion for the previous financial year.
The company issued a quarterly and end-of-year update earlier this week, detailing its promising financial position.
Its $3 billion EBIDTA (earnings before interest, taxes, depreciation and amortisation), a key measure of overall financial performance, follows $200 million reported in the previous financial year.
A record average coal price of $514 a tonne for the quarter, and $325 a tonne for the financial year, have contributed to the company’s positive financial result.
Whitehaven Coal managing director and CEO Paul Flynn said with demand for high-quality coal outstripping global supply, the company remains well placed to support energy security through transition and to deliver strong returns for shareholders.
“Coal prices set a new record during the June quarter and continue to be well supported,” he said.
“Stronger operational performance has enabled us to deliver our FY22 production and sales guidance in spite of a tight labour market and COVID-related absenteeism.
“Improved operational performance combined with record high coal price will underpin our strongest ever full-year result.
“We expect to report a full year EBITDA of approximately $3 billion, subject to final audit.”
Mr Flynn said a net cash position of $1 billion at June 30, with ongoing strong cashflows, gives Whitehaven a continuing strong balance sheet with cash reserves to fund future growth and also return capital to shareholders through franked dividends and share buy-backs.
“We look forward to providing further details on our financial results and capital management plans at our full-year results announcement on August 25.”
June quarter managed run-of-mine production of 6.4 megatonnes was up 21 per cent on the March quarter, and 2021-22 financial year managed run-of-mine coal production of 20.0 megatonnes was within guidance of 19.0-20.5 megatonnes.
June quarter total equity sales of produced coal of 4.4 megatonnes was up 23 per cent on the March quarter and 2021-22 financial year total equity sales of produced coal of 14.2 megatonnes was down two per cent the on 2020-21 financial year.
In the previous financial year, managed sales of produced coal of 17.6 megatonnes was within guidance of 17.2-17.8 megatonnes.
Whitehaven Coal holds a net cash position of $1 billion as at June 30, 2022, with $1.4 billion of cash generated in the June quarter.
After buying back 76.37 million shares (approximately seven per cent of issued shared capital) for $362.6 million, Whitehaven aims to complete its 10 per cent share buy-back within a revised total cost of $550 million.
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