New Hope (ASX:NHC) to conduct AU$300M share buyback

November 03, 2022 02:37 PM AEDT | By Sonal Goyal

New Hope (ASX:NHC) to conduct AU$300M share buyback — Image source: © G0d4ather | Megapixl.com

Why is New Hope conducting an on-market buyback?

New Hope said that it reported record earnings in the full year ending on 31 July 2022, following which it intends to strengthen its balance sheet. The Board and management of the group contemplate that the present share price does not reflect the underlying value of the assets. The buyback program is seen as an opportunity to increase the value of shares on issues and enhance stock liquidity.

Considering the strong cash generation, the management believes that buyback would be a balanced form of capital management.

During the year 2022 (FY22), the company had registered a 143% rise in revenue from ordinary activities and a 1,138.8% surge in net profit attributable to members. Also, net cash from operating activities grew by 285%.

Robert Millner, chairman, New Hope, commented on the development

Share performance of New Hope

Today, the shares of New Hope were spotted trading 3.83% higher at AU$5.97 per share at 1:39 PM AEDT. Meanwhile, the benchmark index, ASX 200 Energy (INDEXASX:XEJ) was down 1.30% to 11,422.40 points around the same time.

Including today’s gain, New Hope's share price has recorded a fall of 5.39% in the past five trading sessions. In the past one year, the share price has risen by 215.87%, and on a year-to-date basis, it has surged by 157.33%. In six months, it has increased by 68.64%.

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