New Hope shares jump on strong HY earnings, buyback announcement

Investing.com-- Shares of Australian coal miner New Hope Corp (ASX:NHC) jumped on Tuesday after the company reported a sharp rise in half-year profit on increased production and lower unit costs. 

The company’s flagship Bengalla Mine reached its target run rate, while the continued ramp-up at New Acland Mine also contributed to stronger output, the company said.

The miner posted a net profit after tax of A$340.3 million for the six months ended January 31, marking a 35% increase from the previous year.

Shares of the company jumped over 7% to A$3.99 as of 23:36 GMT.

This growth came despite weaker coal prices, as disciplined cost management helped offset market headwinds, the company said in a statement.

Underlying EBITDA rose to A$517.3 million, driven by a 32.9% jump in saleable coal production to 5.4 million tonnes.

Production gains were supported by Bengalla achieving steady-state operations at 13.4 million tonnes per annum and legal certainty for the New Acland Stage 3 expansion.

New Hope declared an interim dividend of 19 Australian cents per share, up from 17 cents a year ago, and announced an on-market share buyback of up to A$100 million.

The company said strong cash flow generation allowed it to maintain capital returns while advancing its growth projects.

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