New Hope losses deepen amid lower prices, impairments
New Hope has posted a wider annual loss because of lower coal and oil prices and impairment charges.
New Hope Corporation recorded a wider annual loss because of lower coal and oil prices and impairment charges against some oil investments.
The mining company (NHC) today reported a net loss of $53.7 million for the year through to July, compared to a loss of $21.8 million a year earlier.
The company cut its final dividend to 2 cents a share. A year ago it paid a final dividend of 2.5 cents a share and a special dividend of 3.5 cents.
New Hope reported impairment charges against the oilfields run by Bridgeport, the energy business it purchased in 2012. That included a $10.5 million charge against producing assets and $8.4 million against some exploration projects.
New Hope said it also continued to grapple with weak prices during the year.
Coal prices have been largely sliding since 2011, as cooling demand for the fuel was met by rising supplies from new mines planned when the market was booming, although prices have improved in recent months.
Still, New Hope said an acquisition during the year “had an immediate positive impact” on cash flow. Annual revenue increased 5.1 per cent on-year.
The company last month said annual sales rose by roughly one-fifth after it acquired a stake in the Bengalla coal mine in eastern Australia from Rio Tinto.
New Hope bought a 40 per cent stake in the Bengalla operation earlier this year for $US616.7 million. Wesfarmers owns 40 per cent of the operation, while Mitsui and state-owned utility Taipower each own 10 per cent.
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