Yancoal Australia (YAL) H2 2024 earnings summary

Executive summary

• Achieved record half-year production and a 10% year-over-year increase in attributable saleable coal production to 36.9Mt, meeting full-year guidance.

• Revenue reached $6.86 billion, with net profit after tax of $1.22 billion, a 37% operating EBITDA margin, and $2.5 billion cash at year-end.

• Maintained a net cash position, repaid all interest-bearing loans, and declared a $687 million fully franked final dividend for 2024, representing a 56% payout ratio.

• Safety performance improved, with TRIFR below industry average, and advanced sustainability reporting with the first standalone report.

• Celebrated 20th anniversary and inclusion in S&P/ASX 200 and 300 indices in September 2024.

Financial highlights

• Revenue declined 12% year-over-year to $6.86 billion due to lower realized coal prices; operating EBITDA was $2.58 billion at a 37% margin; profit after tax was $1.22 billion, down 33%.

• Cash operating cost per tonne decreased 3% to $93/t, with an implied cash operating margin of $66/t.

• Ended the year with $2.5 billion in cash and a net cash position of $2.35 billion, after repaying over $3 billion in loans since 2021.

• Basic EPS for 2024 was $0.92; net tangible assets per share rose to $6.95.

• Final dividend of $687 million ($0.52/share, fully franked) declared for 2024, payable in April 2025.

Outlook and guidance

• 2025 attributable saleable production guidance is 35–39Mt, with cash operating costs forecast at $89–97/t and capital expenditure projected at $750–900 million.

• Production volumes expected to be lower in Q1 2025 due to mine sequencing and longwall moves.

• Dividend policy remains at a minimum of 50% of NPAT or free cash flow, with the next payment scheduled for April 2025.