Yancoal Australia (YAL) H1 2024 earnings summary

Executive summary

• Revenue for 1H 2024 was $3.14 billion, down 21% year-over-year, with operating EBITDA of $990 million (32% margin) and profit after tax of $420 million, reflecting a 57% decrease from 1H 2023 due to lower coal prices.

• Attributable saleable coal production increased 18% to 17.0Mt, with total saleable production up 16% to 21.6Mt, driven by operational improvements.

• No interim dividend declared for 1H 2024; $429 million was paid as a final dividend for 2023 in April.

• Cash at period end was $1.55 billion, with no debt and a net cash position, providing significant financial flexibility.

• Maintained a robust safety record, though Total Recordable Injury Frequency Rate increased to 7.0 from 5.1 sequentially.

Financial highlights

• Revenue declined 21% year-over-year, mainly due to a 37% drop in realised coal prices.

• Operating EBITDA dropped 46% to $990 million, with a margin of 32% (down from 46% in 1H 2023).

• Cash operating costs reduced 7% to $101 per tonne, with an implied cash operating margin of $60 per tonne.

• Net cash from operating activities was $851 million, up from $89 million in 1H 2023 due to lower tax payments.

• Basic EPS was 31.9 cents, down 57% year-over-year.

Outlook and guidance

• Full-year attributable saleable production guidance remains at 35–39Mt, with higher volumes expected in the second half.

• Cash operating cost guidance for the full year is $89–97 per tonne, with costs expected to decrease in 2H.

• Capital expenditure guidance is $650–800 million, likely at the low end due to some spend shifting to 2025.

• Focus remains on production uplift and cost optimization for 2H 2024.

• Market conditions for thermal coal expected to remain balanced, with moderate price volatility.