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Highlights:
- Revenue Soars: Whitehaven’s revenue surged 116% year on year to $3.43 billion in H1 FY2025.
- Production Boost: Managed ROM production jumped 88% to 19.4Mt, supporting higher earnings.
- Shareholder Returns: Declared a 9.0 cents per share interim dividend and resumed a $72 million share buyback.
Whitehaven Coal Ltd (ASX:WHC) saw its share price surge today following the release of its half-year results for the six months ending 31 December 2024 (H1 FY2025). The coal miner’s stock, which closed at $5.19 yesterday, climbed 7.7% in early afternoon trading to $5.89, significantly outperforming the S&P/ASX 200 Index (ASX:XJO), which was down 1.4% at the same time.
The rally comes as Whitehaven reported a sharp increase in revenue and earnings, bolstered by contributions from its newly acquired Queensland mining operations.
Financial Performance Fuels Investor Optimism
Whitehaven reported six-month revenues of $3.43 billion, marking a 116% increase year on year. Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 52% to $960 million, reflecting operational performance and higher production volumes.
However, the miner’s underlying net profit after tax (NPAT) declined 13% year on year to $328 million. This dip in profit was expected due to acquisition-related costs and changes in production dynamics.
A major driver of the company’s revenue boost was its newly integrated Queensland mines—Daunia and Blackwater—which contributed $588 million in EBITDA during the period. FY2025 is the first full financial year in which Whitehaven has operated these assets.
Dividends, Buybacks, and Production Growth
In a move welcomed by income-seeking investors, Whitehaven's board declared a fully franked interim dividend of 9.0 cents per share, payable on 14 March 2025.
Additionally, the company announced it would resume its share buyback program, allocating up to $72 million for share repurchases over the next six months.
On the production front, Whitehaven reported 19.4 million tonnes (Mt) of managed run-of-mine (ROM) production, a substantial increase from 10.3Mt in H1 FY2024. The company achieved an average coal price of $232 per tonne, while unit costs of $137 per tonne remained at the lower end of its FY2025 guidance.
As of 31 December 2024, Whitehaven maintained a liquidity position with $1.33 billion available.
What’s Next for Whitehaven Coal?
Looking ahead, Whitehaven reaffirmed its full-year FY2025 guidance for coal production, sales, costs, and capital expenditure. Production and sales are tracking at the higher end of guidance, while costs remain at the lower end.
The company also adjusted its equity coal sales volumes to reflect its 70% ownership of the Blackwater mine, effective from 1 April 2025.
