The Whitehaven Coal Ltd (ASX: WHC) share price is red this afternoon, despite gains observed in the broader market.
Shares of the coal producer are currently down 2.5% at $2.385 apiece. Meantime, the S&P/ASX 200 Energy Index (ASX: XEJ) is 1.49% higher at the time of writing while the S&P/ASX 200 Index (ASX: XJO) is up 0.59%.
Similarly, other ASX coal shares are outperforming the Whitehaven Coal share price so far today.
Shares in New Hope Corporation Limited (ASX: NHC) are up 0.55% while Coronado Global Resources Inc (ASX: CRN) is trading 2.54% higher.
There are no announcements from the company today to make sense of the selloff in Whitehaven's share price, but some developments have unfolded for the energy market in general. Let's cover those highlights.
Image source: Getty Images
Share prices fall amid energy crisis
Reuters reported this morning that energy companies in the EU, such as coal producers, could be required to make 'a solidarity contribution' to help offset the effects of the continent's ongoing energy crisis.
Under the proposal, companies would be required to pay out part of their taxable profits made in FY22. These funds would then be used to help subsidise rising energy costs and, ultimately, help Europe to be less dependent on Russia for its energy supply.
As reported by Bloomberg this morning, the energy market is also being hit from another angle as the price of natural gas falls to lower levels. Natural gas futures were said to have fallen 9.3% amid the challenges in the EU.
The price of coal is also down today with coal trading 2.94% lower, according to Markets Insider. The current price is $US330 per tonne.
Whitehaven Coal share price snapshot
Despite today's drop, the Whitehaven Coal share price has gained an incredible 222% so far this year.
It far outstrips the ASX 200's 6% loss over the same period.
The company's current market capitalisation is around $8 billion.
