New Hope first-half profit jumps 69pc
New Hope’s big rise in first half profit reflects better coal prices, higher sales and lower operating costs.
New Hope Corporation recorded a 69 per cent jump in its fiscal first half profit, reflecting better coal prices, higher sales and lower operating costs.
The coal miner (NHC) said it earned a net profit of $115.6 million for the six months through January, up from $68.4 million in the same period a year earlier.
New Hope said it would raise its interim dividend by 50 per cent to 6 cents a share.
The miner benefited from improved coal prices, which have been aided by restrictions on coal mining in China, sparking higher demand for foreign coal.
The company also reported a 10 per cent increase in sales, underpinned by increased production from the Bengalla coal mine in NSW, and said it gained from “a continued focus on cost management.”
Still, New Hope cautioned of emerging cost pressures. “Improving commodity prices have started to impact upon the cost of both labour and other materials, which will require careful cost management over coming periods,” the miner said.
New Hope said it remains committed to securing approvals for an expansion of its Acland mine and said it is reviewing its options for restarting the Burton coal mine acquired last year from Peabody Energy.
Dow Jones Newswires