Whitehaven Coal Limited

Whitehaven reported revenue of AUD 2.5 billion for the half, with 54% from metallurgical coal and 46% from thermal coal. Underlying EBITDA was AUD 446 million, underlying net loss was AUD 19 million, and statutory net profit after tax was AUD 69 million. The group realized AUD 189 per tonne on sales, with Queensland at AUD 212 per tonne and New South Wales at AUD 168 per tonne, while unit cost was AUD 135 per tonne and margin was 34%. Management said it is tracking at the bottom end of FY26 cost guidance of AUD 130 to AUD 145 per tonne, and it kept full-year guidance unchanged, including ROM production of 20 million tonnes in the first half, managed production at the upper end of the range, CapEx of AUD 157 million in the first half, and cost savings of AUD 60 million to AUD 80 million by year-end.

Paul Flynn described the first half as a good foundation for the second half, emphasizing safety, compliance, and operational momentum despite wet weather. He repeatedly framed the business as having a strong balance sheet and improving market conditions, which supported the interim dividend and buyback. Strategically, he highlighted the enlarged group’s diversification, solid supply-demand fundamentals, and the company’s ability to keep pushing cost and productivity improvements.

Kevin Ball focused on the earnings bridge: lower prices and the 30% Blackwater sell-down drove the EBITDA decline, while costs improved despite port queuing and weather. He highlighted the AUD 135 per tonne cost outcome, the AUD 189 per tonne realized price, and the 34% margin, noting Queensland depreciation and amortization were heavy because of acquisition accounting. He also pointed to net debt of AUD 710 million, liquidity of AUD 1.5 billion, and refinancing plans for the USD 1.1 billion acquisition facility, with hopes to cut the current roughly 10.5% rate to a 6-handle or 7-handle.

Analysts pressed management on the refinancing of the USD 1.1 billion term loan, with Kevin Ball saying the company expects to refinance before 30 June and expects materially lower interest costs. Questions also focused on whether the new AUD 32 million buyback was incremental; management explained that each buyback program is closed and reopened for regulatory reasons, so the latest authorization is a new 6-month program rather than an overlay. Several questions probed the Queensland cost reset, and Paul Flynn said the new expectation is AUD 140 to AUD 145 per tonne, with the higher costs front-end loaded and FY28 likely lower than earlier years within that range. Analysts also asked about Vickery, Blackwater expansion, and met coal pricing; management said Vickery is fully approved but not slated for FID in the next 6 to 12 months, Blackwater has both northern and southern growth options, and met coal demand remains firm even as prices have softened from weather-driven peaks.