Whitehaven writedown hits bottom line

An AUS$355 million writedown on early-stage exploration assets left Whitehaven Coal AUS$342.7 million in the red for the 2015 financial year compared to loss of AUS38.4 million in the previous year.

Net loss before the writedown, however, was a more positive AUS$10.7 million – a significant improvement on the previous year’s AUS$28.4 million loss – and the company achieved a net profit in the six months to the end of the financial year in June.

“This is a positive result for Whitehaven, which cements its place as one of the world’s leading producers of high-quality coal,” said Whitehaven Managing Director and CEO, Paul Flynn. “The fact the Whitehaven has delivered on its commitments and returned to profitability in the second half despite subdued global demand for coal is a strong endorsement of our product, performance and potential.”

Flynn was also positive on the long-term future for coal – particularly the high-quality coal that Australian producers can offer.

Revenue for the year was AUS$763.3 million compared to AUS$755.4 million in the 2014 financial year. Operating EBITDA was AUS$130.3 million, up almost AUS$40 million y/y.

Written by Jonathan Rowland.

Read the article online at: https://www.worldcoal.com/mining/13082015/whitehaven-writedown-hits-bottom-line-2727/