Full Year 2026 Whitehaven Coal Limited Earnings Call Transcript
Key Points
- Record safety performance with TRIFR at 3.3 for the expanded business.
- Production exceeded 40 million tonnes, at the top end of guidance, with strong performance from Daunia and Maules Creek.
- Unit costs reduced to AUD132 per tonne, down from AUD139, driven by over 100 cost-saving initiatives.
- Successful refinancing lowered debt costs, saving $50-55 million annually, and achieved investment-grade rating.
- Strong balance sheet with net debt at ~1x EBITDA and $778 million cash, positioning well through the cycle.
- Positive long-term demand outlook with projected supply shortfalls in both met and thermal coal.
- Softer coal prices and adverse FX reduced revenue by nearly $300 million year-on-year.
- Underlying NPAT fell to $227 million, impacted by lower prices and higher finance costs.
- FY27 cost guidance has a wide range ($132-$147/t) due to diesel price uncertainty from Middle East conflict.
- Narrabri underperformed due to geotechnical issues, with capital expenditure increasing for longwall refurbishment.
- Daunia production expected to moderate in FY27 as it transitions to southern pits with longer hauls.
- Payout ratio exceeded policy at 70%, driven by a small interim dividend, which may not be sustainable.
Ladies and gentlemen, welcome to Whitehaven Coal full year FY26 financial results. (Operator Instructions)
Thank you for joining us today. I will now hand the conference over to Managing Director and CEO, Paul Flynn. Please go ahead.
Good morning, everybody. Thanks very much for joining us today. I know there's a bunch of calls with other companies releasing results today, but appreciate you taking the time to dial into our full year '26 financial results presentation.
As usual, I'll go through a presentation quickly. I'm joined by my colleagues here, our CFO, Kevin Ball; our COO, Ian Humphris. We'll go through the presentation between Kevin and myself, and we'll move on to Q&A very shortly. So thanks very much again.
Just flick over the page. We've got our disclosure, our disclaimer there because we do have forward-looking statements in this document. So I bring that to your attention for your reading pleasure. I'll just move
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