Whitehaven Coal posts record profit, flags higher costs

SYDNEY: Whitehaven Coal Ltd reported a record full-year 2019 underlying profit and a bumper dividend that beat expectations, although analysts said an oversupply of thermal coal could cause headwinds to future profits.

Australia’s biggest independent coal miner said net profit after tax, before significant items, was A$564.9 million ($383 million) compared with A$524.5 million a year ago.

The company declared an second-half ordinary dividend of 13 Australian cents per share and a special dividend of 17 Australian cents per share, up from 20 Australian cents for the first half of the year.

For the full year, the company will pay a dividend of 50 Australian cents per share, up from 27 Australian cents for the previous year.

“They slightly beat the market’s expectations on financials and they well and truly beat expectations on the dividends which is the real story about today,” said analyst Tom Sartor at Morgans. — Reuters