Yancoal profit slips despite production ramp-up

YANCOAL has reported a before tax profit of $492 million for the half-year ended June 30, down $47 million from the $539 million it reported in the corresponding period.
Yancoal profit slips despite production ramp-up Yancoal profit slips despite production ramp-up Yancoal profit slips despite production ramp-up Yancoal profit slips despite production ramp-up Yancoal profit slips despite production ramp-up

Yancoal's Moolarben mine in NSW.

Total operating earnings before interest tax depreciation and amortisation were also lower at $940 million, despite the company increasing total saleable production for the half to 17.8 million tonnes, compared to 16.4Mt for the previous corresponding period.

Revenue from continuing operations was $2.3 billion, which was consistent with 1H18.

Yancoal CEO Reinhold Schmidt said at the half-way point of the year the company remained on target to achieve its 2019 operational goals.

He said annualised attributable saleable coal volume was 35.6 million tonnes compared to guidance of about 35Mt.

"In response to market conditions impacting the realised price we achieved in the latter months of the first half, we are focused on optimising our sales mix and volumes for the current international market," Schmidt said.

"Coal remains a critical part of global baseload energy supply, and Yancoal is an integral part of the solution to satisfy the ongoing international demand for high-quality coal."

Yancoal chairman Baocai Zhang said the integration of Mount Thorley Warkworth and Hunter Valley Operations in New South Wales continued to yield operational synergies and coal marketing opportunities, bolstering the company's ability to navigate international coal markets.

"Our consolidation as a leader in the international coal market continues and this will underpin the Yancoal Group's financial strength into the future," he said.

 

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