Asian demand drives coal profit

WHITEHAVEN Coal has recorded a near 30 per cent hike in full-year profit and signalled it expects continuing strong demand from hungry Asian energy generators.

Improved volumes and high prices for premium thermal coal lifted Whitehaven’s profit for the year to June by 29.7 per cent, to $525.6 million.

Revenue was up 27.3 per cent to $2.26 billion, the group revealed yesterday.

Shares in the miner surged 7 per cent during morning trade yesterday before shedding some of those gains, ending the session 1.3 per cent higher at $5.33.

Whitehaven reported a 7 per cent increase in production to 22.9 million tonnes for the year.

Prices for thermal coal, used in power generation, had increased, hitting a six-year-high in recent weeks, the group said. The demand outlook for coal remained strong, Whitehaven said, citing an increase of almost 9 per cent in total power generation in China during the year to May.

Malaysia, Vietnam and the Philippines had also increased coal imports as domestic gas production ran down, Whitehaven said.

The coal exporter, based in northern New South Wales, said new demand could come from Pakistan and Bangladesh, which were deploying new coal-fired power plants.

Higher prices and demand had coincided with supply constraints from many exporters, with the US and Indonesia the only producers having responded to the recent improvements in the market.