While coal prices have pulled back in recent months, this didn’t stop Whitehaven Coal from enjoying a record average price across the 2022–23 financial year (FY23).
The company shifted coal at an average of $445 per tonne (t) across the 12 months. This was supported by a record September 2022 quarter where prices averaged $581/t and a strong December 2022 quarter ($527/t). The average coal price in the June quarter of 2023 was $264/t.
Whitehaven boosted production by 19 per cent quarter-on-quarter (qoq) in the three months to June 30, with 5.1 million tonnes (Mt) of run-of-mine (ROM) coal produced across the period. The company achieved the lower-end of its FY23 ROM coal production guidance (18.2Mt produced against 18–19.2Mt).
“During FY23, production and sales volumes were impacted by H1 (first half) flooding and weather delays, labour shortages and operational constraints at Maules Creek,” Whitehaven managing director and chief executive officer Paul Flynn said.
“However, a stronger June quarter relative to the March period helped deliver our overall FY23 guidance for both production and sales.”
Flynn said that while Whitehaven achieved a lower realised coal price in the June quarter due to lower demand and high customer inventories, the company still delivered a 10 per cent premium to the globalCOAL NEWC Index of $US161 ($236)/t – the main price reference for physical coal contracts in Asia.
Whitehaven generated $435 million in cash in the June quarter and had $2.65 billion in the bank at the end of FY23.
“In FY23 we returned $1.6 billion of capital to shareholders through dividends and buy-backs,” Flynn said. “We are maintaining a resilient balance sheet, and with strong underlying demand for our high quality products, Whitehaven is well placed to continue to generate strong cash flows and deliver value for our shareholders.”
Whitehaven will release its FY23 results on August 24.
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