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Highlights
- Whitehaven Coal Limited confirms that its on-market share buyback of roughly 10% of shares is progressing well.
- Whitehaven shares traded 0.963% higher at AU$4.190 per share on ASX at 3:41 PM AEDT.
- The S&P/ASX 200 Energy (ASX:XEJ) sector was up 1.262% at 10007.800 points during the intraday trading session today.
Shares of Whitehaven Coal Limited (ASX:WHC) remained on investors' radar on Friday (1 April 2022) after the company gave a positive update on its on-market share buyback of roughly 10% of its shares. Today the company has confirmed that its on-market share buyback capped at AU$400 million over a twelve-month period is progressing well.
Whitehaven shares traded 0.963% higher at AU$4.190 per share on ASX at 3:41 PM AEDT. The share price of Whitehaven Coal Limited has gained 135.39% over the last 12 months, while the stock is up 51.81% YTD.
The ASX-listed Australia's leading coal producer stated that it is currently in a blackout period ahead of its March quarter production report scheduled for 20 April, after which Whitehaven's share buyback activities can re-commence.
The energy company informed that with the initial purchase of shares made on 8 March, AU$67 million was spent on the buyback in March to acquire 16.8 million shares. This represents 16% of the maximum 103 million shares likely to be acquired under the share buyback programme.
This month, the coal producer paid an unfranked dividend of 8 cents per share, bringing the total capital management payments to AU$147 million in March.
Meanwhile, on ASX today, the energy stocks performed well. The S&P/ASX 200 Energy (ASX:XEJ) sector was up 1.262% at 10007.800 points during the intraday trading session today. The index has gained more than 20% over the last one year.
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High demand for coal
Metallurgical coal prices rose to an unprecedented record high level during the Russian-Ukraine war. For the first time, the prices surpassed the US$400 per tonne mark before coming down to the current level of US$300/tonne.
Europe and countries such as China, South Korea, and Japan depend heavily on Russian coal. However, because of sanctions on Russia many countries have stopped importing from Russia and are looking for other supply substitutes.
As per analysts, the outlook for the commodity looks positive at the moment, given its usage in the steel manufacturing industry and sanctions on Russian coal.
Image Source: © Kiosea39 | Megapixl.com
Updates on oil prices
As per media sources, WTI crude futures dropped slightly below US$100 a barrel on Friday prior to a meeting between International Energy Agency (IEA) member countries to discuss upon the further release of emergency oil reserves that would follow their 1 March agreement to release close to 60 million barrels.
It is believed that close to 40% of Europe's gas arrives from Russia.
Russian President Vladimir Putin was quoted as saying, "To buy Russian gas, they (European gas customers) need to open ruble accounts in Russian banks." There are apprehensions that if payments from these accounts are not made, starting 1 April, Putin will stop the flow of gas tonight.
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