Yancoal posts record profits

YANCOAL shares have surged by almost 30 per cent on the back of record 2018 results, including profit after tax of $852 million.

Financial results released to the market late February revealed a record dividend of 28.55c per share, and debt reduction of $US500 million.

On 26 February, the company’s share price had spiked to $4 per share, up from $3.18 a day prior.

Yancoal chairman Baocai Zhang said the company’s exceptional financial results were due to the continued, transformational growth driven by its tier-one assets.

“We have also raised new capital, expanded our shareholder base, and are about to pay our final dividend and special dividend with a total payout rate for 2018 of around 60 per cent,” Mr Zhang said.

“At the operational level, the integration of the acquired Coal & Allied assets of Hunter Valley Operations and Mount Thorley Warkworth is going well and operational synergies continue to be delivered ahead of expectations.

“We have fortified our position as a leader in the international coal market and returned the Yancoal Group to a position of market strength and financial health.”

The company was set to invest in new fleets and operational improvements across its low-cost, high-quality producing tier-one assets in Australia in 2019.