Why we're watching the Whitehaven Coal (ASX:WHC) share price today

The Whitehave coal share price is on our radar today following release of the company's HYFY21 results. Here's what we learned.

| More on:
asx share price on watch represented by investor looking through magnifying glass

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

We're watching the Whitehaven Coal Ltd (ASX: WHC) share price this morning following the release of the company's half-year FY21 results. Over the previous 12-month period, the Whitehaven Coal share price sank over 36%.

Let's take a look at the announcement to assess what it might mean for share prices. 

What will today's results mean for the Whitehaven Coal share price?

Whitehaven Coal reported a half-yearly loss for FY21. This was due to the coronavirus pandemic rattling coal prices.

Consequently, the company posted a net loss after tax of $94.5 million for the six-month period. This is significant, compared to a profit of $27.4 million in the prior corresponding period (pcp). It is worth noting that the loss exceeds the UBS estimate of an interim loss of $53 million.

Whitehaven Coal revenue took a 21% hit to land at $699.3 million compared to $885.1 million in the pcp. Earnings before interest, tax, depreciation and amortisation (EBITDA) flopped 79% from $177.3 million to $37.2 million. Considering FY21 half-yearly earnings, the Board determined an interim dividend will not be declared.

However, the Whitehaven Coal share price has clawed up 20% over the previous six months. The company has reported $411.8 million of available liquidity.

CEO comments on Whitehaven Coal results

Whitehaven Managing Director and CEO, Paul Flynn, said this about the H1FY21 results:

The impacts of subdued pricing on seaborne coal markets were a key feature of H1 results as COVID-19 impacts on economic and industrial activity continued to be felt.

The business responded strongly to these challenging market conditions, including through improvement measures that delivered meaningful cost reductions and greater operational efficiency, offsetting price headwinds to some extent.

We have closed out H1 FY21 with strong levels of liquidity, strong banking support and we are focused on retiring debt against the backdrop of the improving price environment.

With future savings targets identified and coal markets rebalancing in response to demand signals we are optimistic about achieving stronger outcomes through the second half.

Moving Forward

Year-to-date, the Whitehaven coal share price has dropped 3.65%. With this in mind, it will be interesting to see how today's announcement will impact Whitehaven's share prices. 

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A man clenches his fists in excitement as gold coins fall from the sky.
Broker Notes

These ASX 200 shares can rise 20% to 50%

Let's see which shares are being tipped to rocket from current levels.

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors panicked when the latest inflation figures came out today.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Broker Notes

Why Guzman Y Gomez shares are a sell

Goldman Sachs has given its verdict on the burrito seller.

Read more »

A man pulls a shocked expression with mouth wide open as he holds up his laptop.
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Mac Copper, Pro Medicus, Web Travel, and Yancoal shares are pushing higher today

These shares are having a good time on hump day. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why ALS, Fisher & Paykel Healthcare, IPD, and Predictive Discovery shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

Man looking at his grocery receipt, symbolising inflation.
Share Market News

How are ASX 200 investors responding to the latest Aussie inflation numbers?

The ASX 200 was up 0.2% today before the ABS reported the latest inflation figures.

Read more »

A couple makes silly chip moustache faces and take a selfie on their phone.
Broker Notes

Macquarie sees more upside in Telstra shares – What are they worth?

Telstra shares are up 34% over the past year, and Macquarie thinks there's more to come.

Read more »