New Hope Group has increased profits by more than a third in the first half of the 2024–25 financial year (H1 FY25).
Reporting a net profit after tax up 35 per cent to $340.3 million in H1, group saleable coal production reached 5.4 million tonnes (Mt), an increase of 32.9 per cent on the same period in FY24.
New Hope is crediting its bumper production and decreased units costs for the stellar six months.
“We have had a strong first half, with our Bengalla mine now operating at 13.4Mtpa capacity and New Acland Mine now having a clear runway to achieving ~5Mtpa run rate by 2027,” New Hope chief executive officer Rob Bishop said.
“Earnings are up compared to the first half of 2024, even as the coal price has declined, thanks to our continued focus on cost control and execution of our organic growth plans.”
Bishop said the performance demonstrates New Hope’s low-cost operations’ greater resilience to coal price fluctuations.
“As a result of this performance, we are able to return value to shareholders by way of a fully franked interim dividend of 19.0 cents per ordinary share,” he said.
“We remain focused on ramping up production at New Acland mine and sustaining increased production at Bengalla mine, while continuing our disciplined approach to cost control.
“Our performance in the first half of the year has us tracking very well in terms of our guidance ranges.”
The company has now floated an on-market share buy-back of ordinary shares up to $100 million.
New Hope chair Robert Miller said the company’s current share price does not accurately reflect the underlying value of its assets and the buy-back represents an opportunity to enhance the value of the remaining shares on issue.
“The board carefully considers a range of methods to return surplus capital to shareholders, and seeks to action those which maximise value,” he said.
“The company expects ongoing cash generation from its operations as we execute our targeted coal production increases, which provides important energy security to our customers and the regions they service.”
“We believe the buy-back will benefit all our shareholders via a reduction in the number of shares on issue, thereby supporting the company’s return on equity, earnings per share and dividend per share, for all shareholders who continue to hold shares in the company.”
The buy-back will be conducted in the ordinary course of trading over the next 12 months.
