Yancoal Australia (YAL) H1 2024 earnings summary

Executive summary

• First half 2024 revenue was $3.14 billion, with operating EBITDA of $990 million (32% margin) and net profit after tax of $420 million, despite a 21% year-over-year revenue decline due to lower coal prices.

• Attributable saleable coal production increased 18% to 17.0Mt, with total saleable production up 16% to 21.6Mt, driven by operational improvements and mine recovery plans.

• Average realized coal price was AUD 176/t, down 37% year-over-year, but cash operating costs fell 7% to $101/t, supporting a $60/t cash margin.

• No interim dividend declared for 1H 2024; $429 million final dividend for 2023 was paid in April.

• Ended June with over $1.5 billion in cash, no debt, and a net cash position of $1.4 billion.

Financial highlights

• Revenue dropped 21% year-over-year, mainly due to a 37% fall in realized coal prices, despite higher production volumes.

• Operating EBITDA fell 46% to $990 million, with a margin of 32%; operating EBIT dropped 58% to $590 million.

• Net operating cash flow was $851 million, up from $89 million in 1H 2023 due to lower tax payments.

• Basic EPS was 31.9 cents, down 57% year-over-year.

• Net tangible assets per share rose 5% to $6.29.

Outlook and guidance

• Full-year attributable saleable production guidance is 35–39Mt, with higher volumes expected in the second half.

• Full-year cash operating cost guidance is $89–97/t, with costs expected to decrease in 2H.

• Capital expenditure guidance is $650–800 million, likely at the low end due to some spend shifting to 2025.

• No interim dividend declared to retain cash for flexibility and potential future distributions.

• Market conditions for thermal coal expected to remain balanced, with moderate price volatility.