New Hope (NHC) H1 2025 earnings summary

Executive summary

• Net profit after tax rose 35% year-over-year to $340.3 million, driven by a 33% increase in saleable coal production to 5.4Mt and lower unit costs, reflecting strong operational execution and organic growth.

• ROM coal production increased 56% year-over-year to 8.3 million tons, with coal sales up 44%.

• Fully franked interim dividend of 19 cents per share declared, with $160.6 million payable in April 2025; $186 million final dividend paid during the period.

• Discontinuance of legal challenge to New Acland Stage 3 water licence provides certainty for increased production and operational ramp-up.

• Increased equity interest in Malabar Resources to 22.97%, enhancing exposure to metallurgical coal.

Financial highlights

• Underlying EBITDA reached $517.3 million, up 22% year-over-year; revenue grew 19% to $1,019.4 million.

• Net profit after tax was $340.3 million, a 35% increase compared to the first half of 2024.

• Operating cash flow surged 143% to $316.9 million; available cash stood at $805.0 million as of 31 January 2025.

• Group FOR/FOB cash costs fell 21–24% to $55.5/t–$77.7/t, reflecting disciplined cost control.

• Basic EPS rose to 40.3 cents from 29.8 cents year-over-year.

Outlook and guidance

• New Acland Mine expected to reach ~5Mtpa run rate by FY 2027, with group saleable coal production guidance of 10.83–11.87Mt for FY25.

• Bengalla sustaining capital expenditure revised down to $185–225 million for FY25.

• Focus on organic growth, cost control, and maintaining strong shareholder returns.

• Company tracking well within guidance ranges for production and cost targets.

• Positive outlook for high-quality thermal and metallurgical coal demand in Asia and developing markets.