WHC, VEA: Why these ASX energy shares hit multi-year highs yesterday

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WHC, VEA: Why these ASX energy shares hit multi-year highs yesterday

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WHC, VEA: Why these ASX shares scaled their multi-year highs yesterday
Image source: © Robynmac | Megapixl.com

Highlights

  • The ASX 200 has remained muted so far this week.

  • On Thursday, the benchmark index fell 1.75% to 6,941 points.

  • While a majority of shares listed on the ASX 200 showed weakness, there were a few notable exceptions.

Except for a fleeting respite on Wednesday, the Australian share market has largely been in a tailspin this week. ASX stocks were weighed by concerns on rising inflation, energy supply and global recession, which dented investor sentiment. On Thursday, the benchmark index fell 1.75% to 6,941 points.

While a majority of shares listed on the ASX 200 showed weakness, there were a few notable exceptions. The share prices of companies such as Whitehaven Coal and Viva Energy Group hit their multi-year highs on Thursday. Investors would be closely looking at such stocks amid the ongoing weak stock market scenario.

On this note, let’s discuss why these two ASX 200 shares hit their multi-year highs on Thursday:

Whitehaven Coal Ltd (ASX:WHC)

Whitehaven Coal is Australia’s biggest independent coal miner, which develops and operates coal mines in New South Wales and operates Open Cut Operations and Underground Operations segments.

The share price of Whitehaven Coal on Thursday hit its highest point since 2019. The stock reached its multi-year high of AU$5.11, a gain of 2.6% on the previous close. However, the stock ended in the red at AU$4.84.

The stock surged despite no major price-sensitive news coming out of the company on Thursday. However, coal prices have surged sharply in the past few months. Newcastle coal futures hit their highest point since March 2022 on Thursday.

Viva Energy Group Ltd (ASX:VEA)

Viva Energy is an Australian company that owns the Geelong Oil Refinery and retails Shell-branded fuels across Australia. It provides fuel to the Coles Express retail network.

The share price of Viva Energy on Thursday hit its highest point in two-and-a-half years. The stock reached its multi-year high of AU$2.86, a gain of 7.1% from the previous close. However, the stock ended in the red at AU$2.66.

The share price gained after the company released an update on its refining and financial performance for the four months ending 30 April 2022.

The company noted a “significant and sustained widening of the gap between the international price of refined products and our cost of crude oil”.

Viva Energy reported a 65% rise (Y-O-Y) in its unaudited earnings before interest, tax, depreciation, and amortisation (EBITDA) to nearly AU$308 million.

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