Whitehaven Coal (WHC) H2 2024 earnings summary

Executive summary

• FY 2024 was transformational, marked by the acquisition of Queensland metallurgical coal assets (Daunia & Blackwater) and a strategic joint venture with Nippon Steel and JFE, selling a 30% stake in Blackwater for $1.08 billion, enhancing financial stability and future returns.

• Safety and environmental performance improved, with a 30% reduction in TRIFR in NSW to 3.3 and no environmental enforcement actions for the second consecutive year.

• Delivered strong operational results: 24.5 million tons of ROM produced (up 34% YoY), with significant contributions from both NSW and Queensland.

• Announced sale of 30% of Blackwater for US$1.08 billion, expected to complete in Q1 2025, supporting balance sheet and capital flexibility.

• Total shareholder return for FY24 was 23%, ranking 30th in the ASX 100.

Financial highlights

• FY24 revenue was $3.8 billion, underlying EBITDA $1.4 billion (including $869 million revenue and $272 million EBITDA from QLD in Q4), and underlying NPAT $740 million.

• Statutory NPAT was $355 million after acquisition and transition costs.

• Final fully franked dividend of 13 cents per share, totaling 20 cents per share for FY24.

• Group EBITDA margin on own coal sales was 41%, down from 75% in FY23 due to lower prices and higher costs.

• Net debt at 30 June 2024 was $1.3 billion, with available liquidity of $556 million.

Outlook and guidance

• FY25 managed ROM coal production guidance: 35.0–39.5 Mt; managed coal sales: 28.0–31.5 Mt.

• Site cost guidance set at $140–155/t, reflecting labor cost increases and conservative assumptions for Queensland.

• Capital expenditure guidance for FY25 is $440–550 million, with 40% allocated to Queensland and 60% to NSW.

• Focus areas include integrating Queensland assets, cost management, and ramping up Vickery to replace Werris Creek.

• Global metallurgical coal supply constraints and rising Indian demand are expected to support higher prices.