Australian coal miner New Hope announced a four-fold jump in its interim dividend payout as it posted half yearly profits from surging thermal coal prices.
Coal prices that were already soaring last year as the world grappled with supply constraints amid the Covid-19 pandemic peaked after Russia’s invasion of Ukraine, along with other commodities such as oil, iron ore, copper and nickel.
The company posted a profit attributable to shareholders of A$330.4 million ($244.23 million) for the six months ended January 31, compared with a loss of A$55.4 million a year earlier.
Brisbane-based New Hope declared a fully franked interim dividend of 17 Australian cents per share, higher than the 4 Australian cents per share it paid a year earlier. The miner also declared a special dividend of 13 Australian cents per share.
“The invasion of Ukraine has had a more recent impact on coal prices but even prior to that we have seen strong prices on the back of strong demand,” New Hope chief executive Rob Bishop said.
Inquiries from Europe
New Hope said it is expecting demand for high quality, lower emission thermal coal to remain strong in the short- to medium-term as supply remains constrained and ongoing shortage is expected to keep prices at levels not previously experienced.
Australian coal producers have received inquiries from customers in countries such as Poland and others in Europe that have been reliant on Russian coal supply and looking for alternatives.
Bishop said New Hope has been approached by a number of countries that have traditionally relied on Russian coal. “We are looking for opportunities to assist those countries,” he said.
New Hope reported total available liquidity is $933.1 million, an increase of 65% year-on-year.
Bishop said the company was open to acquisitions beyond coal, including in other bulk commodities and renewables.
“But we are in a high price environment which typically isn’t a good time to make acquisitions. So we are carefully considering our options,” he added.
- Reuters, with additional editing by George Russell
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