Highlights
- New Hope reported an underlying EBITDA of AU$645 million for the quarter.
- With the Queensland Government accepting the submission of the Mining Lease and Environmental Authority, Chuwar Coal Mine has been fully restored.
- Meanwhile, shares of New Hope were trading 1.01% lower at AU$4.88 each on ASX today (22 August) at 12.27 PM AEST.
ASX-listed diversified energy company New Hope Corporation Ltd (ASX:NHC) has shared its financial results for July quarter today (22 August).
Following a further increase in coal prices, New Hope reported an underlying EBITDA of AU$645 million for the quarter and a final unaudited Underlying EBITDA of approximately AU$1.56 billion.
Meanwhile, shares of New Hope were trading 1.01% lower at AU$4.88 each on ASX today at 12.27 PM AEST.
Highlights of New Hope’s quarterly report
- With the Queensland Government accepting the submission of the Mining Lease and Environmental Authority, Chuwar Coal Mine has been fully restored.
- Cash and cash equivalents were closing AU$815 million after investing AU$94.4 million in Malabar Resources Limited and collecting AU$504 million in receivables.
- Record-breaking thermal coal prices due to the Russian invasion of Ukraine and worries about the security of the world's energy supply. gC NEWC for the quarter finished at US$404.99/t.
- Strong operational results at Bengalla, despite unpredictable bad weather early in July that affected output and made running the Hunter Valley logistical network difficult.
Marketing and logistics
With a price of US$404.99, the gC NEWC index price set a new record for the quarter. Rainfall during the quarter impacted high-quality Australian thermal coal shipments, supporting high gC NEWC index pricing. The short-term need for high-quality, low-emission thermal coal is anticipated to be sustained by the upcoming ban on Russian coal trading, which is set to go into effect in August 2022.
Queensland & New South Wales operations
In order to obtain the New Acland Stage 3 Mining Leases and Associated Water Licence, New Hope is coordinating with the pertinent Queensland Government Departments. Rehabilitating Stage 2 mining zones continues as the company awaits permission results. Additionally, the company is developing a restart strategy to reduce the time to first coal and help meet the extraordinary demand for coal.
It is to be noted that despite being negatively impacted by the weather and COVID-related labour constraints, Bengalla (NSW) had a successful FY22. Only 3% fewer saleable tons of coal were produced than in FY21. However, the operation lost over 59,848 truck hours (18.3%) due to extreme weather and COVID labour shortages. The priority for FY23 is to get ready for an increase in existing production levels, given the extraordinary demand for Bengalla's high-quality products.
Bridgeport Energy
Bridgeport Energy Oil prices remained strong with an average realised price of AU$162/bbl during the quarter. It sold 64,974 barrels of oil during the period.
The Vali field development advanced with the delivery of essential facilities and pipeline equipment. The three Vali field wells that have been dug so far are perforated and are ready to connect. The test of the Odin well was successful. Once linked in 2023, this well will offer more production capacity.