TerraCom (TER) H2 2024 earnings summary

Executive summary

• Revenue for FY2024 was $259.1 million, down from $660.6 million in FY2023, reflecting a sharp decline in export thermal coal prices year-over-year.

• Net profit after tax was $25.0 million, a significant decrease from $262.5 million in the prior year, primarily due to lower coal prices and reduced sales volumes.

• Total coal sales were 7.23 million tonnes, with equity coal sales of 4.34 million tonnes, both lower than FY2023.

• Dividends paid during the year totaled $24 million, compared to $244 million in FY2023.

• The company signed a Cooperation Agreement with Wintime Energy Group to jointly develop the Moorlands Thermal Coal Project in Queensland.

Financial highlights

• Gross profit fell to $57.9 million from $348.4 million year-over-year.

• Earnings per share dropped to 3.24 cents from 32.76 cents year-over-year.

• Cash and cash equivalents at year-end were $8.4 million, down from $44.0 million at the end of FY2023.

• Total assets decreased to $314.4 million from $356.2 million year-over-year.

• Net assets remained stable at $167.8 million.

Outlook and guidance

• Directors expect energy security to remain a global priority, with strong demand for high-quality thermal coal persisting for several years.

• The company is targeting first coal from the Moorlands Project in FY2026.

• No dividends were declared after year-end.