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New Hope Group announces 2019 half year results

Coal News - Published on Fri, 22 Mar 2019

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New Hope Group has delivered a record half year Net Profit After Tax before non-regular items of AUD 159.8 million, an increase of 33% above the AUD 120.3 recorded in the six months to January 2018. Total revenue for the period was AUD 616.7 million up 21% on the PCP. Managing Director, Mr Shane Stephan, said, “This strong result is due to a number of factors, not the least being the Company’s increased stake in the Bengalla coal mine. The acquisition of an additional 30% interest in Bengalla has brought our ownership to 70%. Increased production at Bengalla saw the mine deliver a Net Profit Before Tax of AUD 126.6 million for the period. Queensland mining operations contributed a Net Profit Before Tax of AUD 110.9 million and ensured a record first half result for the Company. Coal production at Bengalla (equity share basis) was 2.4 million tonnes, 23% above the PCP in 2018.”

Mr Stephan said that “After reaching agreement to acquire Mitsui’s 10% share in the Joint Venture, New Hope will hold an 80% interest in the project, with a view to transitioning to active management of the operation in the near term.”

Before non-regular items, basic earnings for the six months ended 31 January 2019 were 19.2 cents per share compared to 14.5 cents per share for the PCP.

Mr Stephan said the increased share in Bengalla and a five year debt financing package will deliver certainty of funding to underpin the Group’s growth initiatives over the medium term whilst maintaining a conservatively geared balance sheet.

He said that “However we will continue our careful cost management over coming periods as improving commodity prices start to impact across the industry on the cost of both labour and materials. The Company’s commitment to maintaining long term relationships with suppliers is providing a strong competitive advantage as surplus capacity in these markets is consumed.”

He added that “To ensure uninterrupted supply to our many international and domestic customers, we need to secure the necessary approvals for the continuation of the New Acland Mine. The Queensland Land Court decision to recommend the approval of Stage 3 and subsequent decision by the Department of Environment and Science to grant the application to amend the Environmental Authority is welcomed. However we have a number of other steps to go through before the future of the mine is secured. Our focus for the future remains on safe and efficient production at existing operations, enabling commencement of mining operations at the Lenton Joint Venture Burton Mine and extending the life of operations at New Acland.”

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Posted By : Rabi Wangkhem on Fri, 22 Mar 2019
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