Shares in Australia’s Whitehaven Coal bounced back from early declines on Thursday, as the miner posted a smaller-than-expected decline in annual profit and plans to boost shareholder returns.
The country’s largest independent coal miner announced a final dividend of 6 Australian cents per share, beating the Visible Alpha consensus of 5c. Whitehaven will also spend A$48m for share buybacks.
Its shares closed 3.1% higher at A$6.63, snapping a six-session losing streak. The stock had tumbled more than 4% earlier in the day after the results.
Whitehaven reported an underlying posttax profit of A$319m for the year ended June 30, 22% above a Visible Alpha estimate of A$261.1m, but lower than last year’s A$740m due to subdued coal prices and rising costs.
Global coal prices have trended lower this year, pressured by softer Asia demand and abundant supply.
Whitehaven forecast financial 2026 coal unit costs at A$130–A$145 per tonne, compared with A$139 reported in 2025. Citi said the company is focused on meeting the range as most would have expected a lower top end.
It will lift its payout target to 40%–60% of annual underlying earnings from next year through dividends and share buybacks, compared with 20%-50% previously.
Whitehaven is also reducing its funding for the Narrabri Stage 3 extension in New South Wales to A$260m-A$300m from an earlier estimate of A$800m-A$850m, reflecting planning changes.
Citi highlighted in a note that the revised mine plan lowers capital expenditure and defers major equipment purchases.
Jefferies said the updated capital management framework was broadly anticipated and underscored the miner’s focus on balance sheet flexibility in the face of a weaker coal market.
Reuters
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