By Rhiannon Hoyle
Australian coal miner New Hope said its first-half net profit fell by 84%, as weaker coal prices and higher production costs more than offset increased sales.
New Hope reported a net profit of 54.3 million Australian dollars (US$38.4 million) for the six months through January, compared to A$340.3 million a year earlier. Analysts expected a net profit of A$80.2 million, according to a consensus forecast compiled by Visible Alpha.
Revenue fell by 20% to A$814.4 million, while underlying earnings before interest, tax, depreciation and amortization were 58% lower at A$214.8 million.
"Despite increased coal sales, the group's earnings were impacted by lower realized coal pricing, increased prime overburden movement and lower non-regular gains," New Hope said.
Its average realized sales price--excluding hedging--was 20% lower than a year earlier, while so-called cash costs--excluding royalties and trade coal--increased by 13%. Sales were 2.9% higher year over year.
Directors of the company declared an interim dividend of 10 Australian cents per share. A year ago, directors declared a dividend of 19 Australian cents.
"In a lower coal price environment, our assets remain resilient and continue to generate solid margins," Chief Executive Rob Bishop said.
Bishop reaffirmed expectations that New Hope's Bengalla mine will return to a 13.4-million-metric-ton annual production rate during the second half of fiscal 2026. The New Acland mine will continue to ramp up production and mining in the Manning Vale West pit is scheduled to begin during the final quarter of the fiscal year, he added.
New Hope also noted an increase in coal prices since its first half ended, fueled by proposed production cuts in Indonesia and, more recently, the conflict in the Middle East, which has rekindled concerns about energy security.
"The group remains well positioned with healthy stock levels and a well-supported forward sales book, with the majority of production for the next three months sold," New Hope said.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
March 16, 2026 18:13 ET (22:13 GMT)
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