A diversified company is enjoying benefits of rising commodity prices.
New Hope Corporation recently reported a five-fold increase in earnings due to the coal mining boom.
The proponent recorded $645 million in underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) for the three months ending on July 31. This gave a final unaudited EBITDA of about $1.56 billion.
AMR can reveal this growth is likely to continue, following the European Commission’s ban on importing coal from Russia.
“Demand for high quality, low emission thermal coal remained strong and is expected to remain supported in the short-term with the impending ban on Russian coal trade coming into effect in August 2022,” New Hope said in its latest results.
“A warmer than expected northern hemisphere summer increased coal burn, with customers now focussed on replenishment of stock before the onset of winter.”
The fossil fuel continues to be highly popular across Australia too.
“Domestic coal demand particularly in New South Wales continues to be very strong, and the company has sold further coal into the domestic market in addition to existing contracted domestic supply. With security of supply paramount into our key markets our forward sales book remains heavily sold in the coming 12 months,” the company said.
The employer also recorded a 31 per cent drop in its quarterly all-injury frequency rate to just 22.50.
“Improved performance is driven by the successful implementation of enhanced supervisor development training to improve capability across the workforce to assist identify and better manage and control risk of injury in work activities,” it said.
“New Acland operations reached a milestone of 12 months recordable injury free. This is an exceptional achievement given the uncertainty around the stage three approvals.”
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