Australian-owned and operated diversified energy company New Hope Corporation [ASX:NHC] spans a range of operations in coal mining, exploration, port operation, oil, agriculture and innovative technologies.
NHC took a 2.5% increase in value by lunchtime, trading for $5.24 for each share at the time of writing.
The diverse commodity stock has ballooned 32% in the past year on the share market and is up by 22% in its sector and 30.5% on the S&P:
Source: TradingView
New Hope shares a strong April quarter
New Hope laid out its results in the form of a quarterly activities report for the period ending April 2023. The commodity group said that its underlying EBITDA (earnings before interest tax, depreciation and amortisation) had reached $448.1 million for the quarter.
This was an increase of 14.8% in comparison with the previous quarter which ended in January 2023, and another increase of 20.6% on the same quarter last year.
Total ROM coal production was up 27% to a total 2,622Mt in the April quarter, of which 2,027Mt was saleable coal produced, up 32% and total coal sold increased 47% with 2,148Mt.
Having said that, this was a 21% decline on total coal sold at the same time last year.
Nevertheless, the group posted progress all around. A water licence has now been granted for the New Acland project, and the first coal has been produced from the Malabar Maxwell Mine, in which New Hope holds a 15% equity interest.
Regarding coal, the group also reported coal sales of 2.15Mt at Bengalla for the quarter — a project which New Hope holds 80% of — and which increased in sales by 46.9% in comparison with the January quarter.
Since the commencement of the on-market share buy-back program, a total of 17.0 million ordinary shares have been bought back for $92.5 million (as of 28 April). The group said it expects its dividend payments and share buybacks to remain the same as capital management activities.
The company had a closing cash and cash equivalents of $827.0 million, following the payment of the FY23 Interim and Special Dividend which returned a total of $348.8 million to shareholders on 3 May 2023.
New Hope also said that due to the rising rate environment, the company now earns material net interest income on its positive cash balances, which could build later in the year by a partial allocation to cash equivalent and fixed-income opportunities.
The group says that with Chinese import restrictions on Australian coal being lifted, relationships with the Chinese market have been refreshed and look positive.
This has also allowed an outlet for a portion of coal to be sold in the low season, thanks to a healthy demand from China.
NHC says imports in key markets are expected to increase in the coming months. Tight global supply is expected to support pricing for higher CV coal, allowing for a positive outlook for the remainder of the year.
Source: NHC
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