Yancoal Australia (YAL) H1 2024 earnings summary

Executive summary

• Revenue for 1H 2024 was $3.14 billion, down 21% year-over-year, with operating EBITDA of $990 million (32% margin) and profit after tax of $420 million, a 57% decrease from 1H 2023, despite a 17–18% increase in attributable saleable coal production to 17.0Mt.

• Average realised coal price was AUD 176 per tonne, down 37% year-over-year, reflecting market normalization after 2022 highs.

• Cash operating costs fell 7% year-over-year to $101 per tonne, with an implied cash operating margin of $60 per tonne.

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

• Ended June with over $1.5 billion in cash and no debt, providing significant financial flexibility.

Financial highlights

• Operating EBITDA dropped 46% to $990 million; EBITDA margin fell to 32% from 46% in 1H 2023.

• Operating EBIT declined 58% to $590 million; EBIT margin decreased to 19% from 36%.

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

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

• Net cash position improved to $1.42–$1.55 billion, with gearing ratio effectively nil.

Outlook and guidance

• Full-year attributable saleable production guidance remains at 35–39 million tonnes, with higher volumes expected in the second half.

• Cash operating cost guidance for the full year is $89–97 per tonne, with expectations to achieve this through increased second-half output.

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

• No interim dividend declared; cash retained for flexibility and potential future distributions.

• Focus remains on production uplift and cost optimization for 2H 2024.