New Hope Group, parent company of Oakey mine New Acland, posts $1bn after tax net profit

The owner of New Acland Coal has credited strong demand for thermal coal and global supply constraints for its bumper end-of-year profits.

New Hope Group – the owner of New Acland Coal, has posted $1.087bn net profit after tax in full year results with the ASX.

Chief executive Rob Bishop said the strong performance was the result of high demand for thermal coal, coupled with global supply constraints in the first half of the 202-23 financial year.

“Exceptional performance across the business throughout FY23 enabled our team to capitalise on the market conditions, finishing the year with $730.7m cash at bank, no debt following the convertible note repurchase and a net asset position of $2,525.3m,” he said.

New Hope Group CEO Rob Bishop (left) with New Acland Mine General Manager Dave O’Dwyer.

“This outstanding result has enabled the company to reward shareholders with a final fully franked dividend of 21 cents per ordinary share, and a special fully franked dividend of 9 cents per ordinary share.”

The profit result was announced just a few days after the company extracted its first load of coal from the New Acland Coal’s Manning Vale East Pit, which forms part of its stage 3 expansion.

The extraction brings to end the decade-long legal battle to have the project cancelled, though green groups have appealed to the Land Court for a review of the Queensland government’s decision to grant the expansion of its associated water licence.

“We are proud to be welcoming team members back to New Acland,” Mr Bishop said.

“Stage 3 operations commenced in May 2023, and the coal handling and processing and plant washed the first coal earlier this month.”

The increased profits come despite the New Hope Group’s key operation, an open cut Bengalla mine in the Hunter Valley, product dropping by 3 per cent year on year.

Mr Bishop said the output was a “commendable effort” in light of rainfall, flooding and logistics disruptions.