Yancoal Australia reported the underlying net profit after tax (NPAT) rose 56% from the prior corresponding period to around A$564 million for the half-year ended June 30, 2019, according to its semi-annual results announcement on August 21.
This translated into an underlying basis earnings per share of 42.7 for the half year, up 49% from the same period last year.
The company's revenue totaled A$2.35 billion during the period, almost unchanged from a year earlier, according to the announcement.
Over the period, its raw coal production rose 5% to 34.4 million tonnes from 32.9 million tonnes in H1 2018. Three tier-one assets – Moolarben, Mount Thorley Warkworth (MTW) and Hunter Valley Operations (HVO) – saw their combined production rise from 27.4 million tonnes to 28.8 million tonnes.
Commercial output rose 4% year on year to 26.4 million tonnes. The three tier-one assets produced 22.2 million tonnes, a 5% increase from 21.2 million in H1 2018.
Moolarben, a joint venture 85% held by Yancoal, produced 10.9 million tonnes of raw coal in the first half, up 11% from a year earlier; its commercial coal production rose 8% to 9.5 million tonnes.
Yancoal's 82.9% held MTW produced 9.1 million and 6.1 million tonnes of raw and commercial coal during the period, up 7% and 2% respectively.
HVO, 51% controlled by Yancoal, produced 8.8 million tonnes of raw coal, down 3% year on year, and 6.6 million tonnes of commercial coal, a 3% rise.
Yancoal's operations remain concentrated in the Asia-Pacific region, with Japan, Singapore, China, South Korea and Taiwan area accounting for 72% of the group's half-year revenue figures.
As mentioned by Yancoal management, the company's results are largely driven by higher thermal and metallurgical coal volumes and prices thanks to good macroeconomic trends and viability of energy alternatives.
Investors may become concerned over the softening in demand for thermal coal across the Asia-Pacific, but the stability seen in the metallurgical coal markets has kept Yancoal's earnings from falling materially lower.
(Writing by Alex Guo Editing by Tammy Yang)
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