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• Revenue: Queensland contributed $2 billion, approximately 60% of overall revenues for the first half.

• EBITDA: Total EBITDA for the first half was $960 million, with $588 million from Queensland and $632 million from New South Wales.

• EBITDA Margin: $67 per ton on 14 million tons of sales.

• Average Realized Price: $232 per ton for the first half of fiscal year '25.

• Unit Cost of Production: $137 per ton.

• Net Debt: Reduced to $990 million by the end of the first half from $1.3 billion at the start of fiscal year '25.

• Cash Generated from Operations: $922 million.

• Capital Expenditure: $245 million in CapEx and other acquisition costs.

• Dividend: $0.09 fully franked dividend declared.

• Buyback: An equally sized buyback to be executed over the next six months.

• Payout Ratio: 44% of the underlying group NPAT for the half year, including the buyback.

• Warning! GuruFocus has detected 9 Warning Signs with WHITF.

Release Date: February 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Whitehaven Coal Ltd (WHITF) reported strong financial performance with a significant EBITDA contribution from Queensland, amounting to $588 million.

• The company achieved a $67 per ton margin on 14 million tons of sales, reflecting attractive profitability.

• Whitehaven Coal Ltd (WHITF) is on track to reduce costs in Queensland by $100 million per annum by the end of the financial year, driven by operational efficiencies.

• The company declared a $0.09 fully franked dividend and announced a share buyback, reflecting a commitment to returning capital to shareholders.

• Whitehaven Coal Ltd (WHITF) maintained a strong balance sheet with net debt reduced to $990 million, supported by solid cash generation from operations.

Negative Points

• The company is experiencing higher costs in New South Wales due to current mine sequencing and higher-strip ratios, impacting profitability.

• Additional port and loading charges in New South Wales are increasing costs by $4 per ton, affecting the cost base until debt amortization is completed.

• The closure of Werris Creek and moderated volumes from existing mines have led to increased unit costs due to underutilized take or pay costs on rail and port.

• Whitehaven Coal Ltd (WHITF) faces challenges with weather conditions potentially impacting cost guidance and operational performance.

• The company is dealing with the complexities of integrating new assets and systems, which may pose operational and financial challenges in the short term.

Q & A Highlights

Q: Can you explain the reasoning behind maintaining conservative unit cost guidance despite a strong first half? A: Paul Flynn, CEO, explained that the guidance was set conservatively due to the doubling of the business and the integration of new assets. Weather conditions also contribute to maintaining a cautious outlook.