Yancoal Australia (YAL) H2 2024 earnings summary

Executive summary

• Revenue for 2024 declined 12% to $6.86 billion, driven by a 24% drop in realised coal prices, but attributable saleable coal production rose 10% to 36.9 million tonnes, meeting guidance and weighted to a strong second half.

• Operating EBITDA was $2.58 billion at a 37% margin, with profit after tax of $1.22 billion.

• Cash balance increased to $2.46 billion, with no interest-bearing loans and a net cash position of $2.35 billion, supporting a fully-franked final dividend of $687 million ($0.52/share, 56% payout ratio).

• Maintained a strong safety focus, though TRIFR increased to 6.7 but remained below the industry average.

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

Financial highlights

• Revenue was $6.86 billion, down 12% year-over-year due to lower realised coal prices; operating EBITDA fell 26% to $2.58 billion, and profit after tax dropped 33% to $1.22 billion.

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

• Net cash inflow from operating activities rose 69% to $2.13 billion; cash at year-end was $2.46 billion.

• Basic EPS for 2024 was $0.92; net tangible assets per share was $6.95, up 10%.

• Dividend yield based on year-end share price was 8%.

Outlook and guidance

• 2025 attributable saleable production guidance is 35–39 million tonnes, with cash operating costs forecast at $89–97/t and capital expenditure at $750–900 million, focusing on fleet replacement and mine development.

• Output expected to be lower in Q1 2025 due to mine sequencing; cost guidance aims for flat unit costs despite inflation.

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