The New Hope Corporation Limited (ASX: NHC) share price has dropped lower this morning following the release of the coal miner's full year results.
Its shares are down 3% to $2.44 in early trade.
How did New Hope perform in FY 2019?
In FY 2019 the company recorded a 21% increase in revenue to $1,306 million and a 3% lift in net profit after tax before non-regular items of $268 million. The latter was the best full year profit before one-offs in the company's history.
This solid result was driven largely by an increased share of coal sales from the Bengalla Joint Venture.
Over the 12 months New Hope generated net cash from operating activities of $510 million. This allowed the new Hope board to declare a fully franked final dividend of 9 cents per share, up 13% on FY 2018's final dividend.
This took its full year dividend to 17 cents per share, up 21% on FY 2018's dividends. Based on its last close price, this equates to a generous 6.8% dividend yield.
The company's managing director, Shane Stephan, felt the result was outstanding given it has yet to have a full year trading under the new Bengalla Joint Venture arrangement.
He said: "The Company had proven that, through strong financial management, strategic acquisitions and investments and a focus on low cost operations, it was able to continue to generate sustainable long term returns for shareholders."
Outlook.
Management appears cautiously optimistic on the year ahead.
The release advises: "Coal markets have been and are likely to remain volatile in the near term however demand for high quality thermal coal remains strong across Asia. For most Asian countries thermal coal will continue to be a significant component of their energy mix for many years to come, underpinned by continued investment in new coal fired power stations."
"With a suite of quality assets and strong balance sheet, the Company remains well positioned to retain its position as one of Australia's leading coal producers," management concluded.
Elsewhere in the industry today, the BHP Group Ltd (ASX: BHP) share price has dropped lower following a strong gain on Monday and the Whitehaven Coal Ltd (ASX: WHC) share price has edged higher in early trade.
