Yancoal Australia (YAL) H1 2025 earnings summary

Executive summary

• Achieved record first-half production with ROM coal at 32.2 Mt (up 16% year-over-year) and saleable production at 24.8 Mt, with attributable saleable coal production up 11% to 18.9 Mt, tracking above guidance midpoint.

• Revenue declined 15% to $2.68 billion due to a 15% drop in realised coal prices and a 2% decrease in attributable sales volume, impacted by weather-related logistics delays.

• Operating EBITDA fell 40% to $595 million, with a 23% margin; profit after tax was $163 million ($0.12/share), down 61% year-over-year.

• Cash operating costs decreased 8% to $93/t, maintaining a competitive advantage despite inflation and weather impacts.

• Interim dividend of $82 million (A$0.0620/share) declared at a 50% payout ratio, fully franked; strong cash position of $1.8 billion and no external debt at period end.

Financial highlights

• Revenue declined 15% year-over-year to $2.68 billion due to lower realised prices and delayed sales.

• Operating EBITDA fell 40% to $595 million; profit after tax dropped 61% to $163 million; operating cash flow was $473 million, down 44% year-over-year.

• Cash operating costs per tonne decreased 8% year-over-year to $93/t.

• Final 2024 dividend of $687 million paid in April; $407 million capital spend in H1 2025.

• Net cash position at June 30 was $1.8 billion, with no interest-bearing loans.

Outlook and guidance

• Attributable saleable production guidance for 2025 is 35–39 Mt; H1 2025 performance is above annualized midpoint, with potential to reach upper end.

• Cash operating cost guidance for 2025 is $89–$97/t; H1 at $93/t, with potential to move below midpoint.

• Capital expenditure guidance for 2025 is $750–$900 million; $407 million spent in H1.

• Additional 3.75% Moolarben JV interest acquisition to complete in Q3 2025, expected to add ~0.2 Mt to annual production.

• Expecting sales volume recovery in 2H 2025 to match production; focus remains on operational discipline and cost control.