New Hope (NHC) H1 2025 earnings summary

Executive summary

• Net profit after tax rose 35% year-over-year to $340.3 million, driven by higher coal production, lower unit costs, and strong pricing above historical averages.

• Saleable coal production increased 33% to 5.4Mt, with coal sales up 44%, reflecting successful organic growth execution.

• Interim dividend of 19 cents per share declared; on-market share buyback of up to $100 million announced.

• Legal challenge to New Acland Stage 3 discontinued, providing certainty for increased production and operational ramp-up.

• Increased equity interest in Malabar Resources to 22.97%, enhancing exposure to metallurgical coal.

Financial highlights

• Underlying EBITDA up 22% to $517 million; revenue grew 19% to $1,019.4 million.

• Operating cash flow surged 143% to $317 million; closing cash and equivalents at $414 million.

• Group cash costs fell 21% to $77.7/t (FOB) and 24% to $55.5/t (FOR); underlying margin at $84/t.

• Basic EPS rose to 40.3c from 29.8c year-over-year.

• Gross dividend yield of 10.3% for the 12 months to January 31, 2025.

Outlook and guidance

• FY25 production and sales guidance maintained; Bengalla sustaining capital revised down to $185–225 million.

• Targeting group saleable coal production of 10.83–11.87Mt and coal sales of 10.66–11.75Mt for FY25.

• Focus on ramping up New Acland to 5Mtpa by FY27 and maintaining increased production at Bengalla.

• Anticipates continued organic growth with limited capital expenditure, supporting higher free cash flow.

• Positive outlook for high-quality coal demand in Asia and developing markets.