Coal, Financial reports, New Hope Group, News, Quarterly and half yearly results

New Hope sees $1 billion in profits

New Hope Corporation has delivered a net profit of $1.401 billion for the year ended July 31, following an exceptional financial performance.

Coal producer New Hope Group has released its 2023 financial year results (FY23) ending July 31 2023.

Key operational highlights from the report include the company producing 7.2 megatons (Mt) of owned production saleable coal and a total recordable injury frequency rate (TRIFR) of 2.12, a 19 per cent decrease from 2022’s 2.61.

Key financial highlights include New Hope’s final fully franked ordinary dividend being declared at 21.0 cents per ordinary share, and a final fully franked special dividend declared at 9.0 cents per ordinary share.

Its total full year fully franked dividends declared equal to 70 cents per ordinary share, a 13 per cent dividend yield for shareholders based on a closing share price of $5.311.

The company achieved underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) of about $1.7 billion, an 11 per cent increase from the approximate $1.5 billion achieved in 2022.

Its FY23 net profit after tax (NPAT) totals to about $1 billion, a notable increase from 2022’s $983 million NPAT.

New Hope’s net cash from operating activities equalled to about $1.5 billion, a 34 per cent increase from 2022’s recorded $1.1 billion.

New Hope Group chief executive officer Rob Bishop said the performance during FY23 saw strong demand and global supply constraints that pushed thermal coal prices to record levels in the first half of FY23.

“Exceptional performance across the business throughout FY23 enabled our team to capitalise on the market conditions, finishing the year with $730.7 million cash at bank, no debt following the convertible note repurchase and a net asset position of ($2.5 billion),” Bishop said.

“Our flagship operation, the Bengalla mine, delivered 9.0Mt of saleable production in FY23, a reduction of three per cent compared to FY22 and a commendable effort in light of rainfall, flooding and logistics disruptions.”

In late August, New Hope Group released its July quarterly report, revealing a record underlying EBITDA of about $1.7 billion.

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