Whitehaven Coal has reported a significant drop in its full-year profit due to cooling coal prices, which have retreated from the record highs experienced following Russia’s invasion of Ukraine. The company announced an annual underlying net profit after tax of A$740 million ($499.35 million) for the year ending June 30, a substantial decline from A$2.66 billion the previous year. This figure slightly missed market expectations.
In response to these challenges, Whitehaven has opted to sell a 30% stake in its Blackwater coal mine for A$1.08 billion, a move that has positively impacted its stock price, which rose by as much as 8.3%. The company has entered agreements with Nippon Steel and JFE Steel Corp to sell 20% and 10% stakes, respectively.
Despite the profit slump, Whitehaven anticipates an increase in metallurgical coal prices in the near future due to supply constraints and rising demand, particularly from India. The company expects to produce between 35 and 39.5 million tons of managed run-of-mine coal in the current fiscal year, up from 24.5 million tons in 2024.