New Hope share price rockets 6% as half-year profits double

New Hope said it has the ability to almost double current production levels over the next three years.

| More on:
A coal miner wearing a red hard hat holds a piece of coal up and gives the thumbs up sign in his other hand

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

sdf

Key points

  • The New Hope share price is up 6%
  • The ASX 200 coal miner reported its half-year results this morning
  • New Hope will pay a total fully franked interim dividend of 40 cents per share

The New Hope Corporation Limited (ASX: NHC) share price is up 6.2% in late morning trade on Tuesday.

Shares in the S&P/ASX 200 Index (ASX: XJO) coal stock closed yesterday trading for $4.90. Shares are currently trading for $5.21 apiece.

ASX 200 investors are bidding up New Hope shares following the release of the coal miner's half-year results this morning for the six months ending 31 January.

And some results they were.

What's spurring ASX 200 investor interest today?

The New Hope share price is rocketing after the miner reported a remarkable 103% increase in net profit after tax (NPAT) compared to the prior corresponding half year. NPAT for the six months came in at $669 million.

The massive profit boost was driven by a 54% year on year surge in revenue, which came in at $1.58 billion.

Income investors may also be snapping up shares today after the company declared fully franked, interim dividends of 40 cents per share (inclusive of a 10 cps special dividend). At the current New Hope share price that works out to an instant yield of 7.7% from the interim dividend alone.

Well, not quite instant.

New Hope stock trades ex-dividend on 17 April. Investors holding shares at market close on that day can expect the outsized dividend payout to hit their bank accounts on 3 May.

What's next for the New Hope share price?

Looking ahead to what could impact the New Hope share price over the coming months, the miner said global thermal coal demand was outstripping supply, pointing to Southeast Asia as an expected growth market.

It noted that "All major coal suppliers face considerable constraints, placing increased value on already permitted, low cost operations." 

The company added that the New South Wales government has granted its Bengalla Exploration Licence, which "should provide further long-term growth opportunity".

What kind of growth?

New Hope said it has the "ability to almost double current production levels over the next three years through organic growth".

New Hope share price snapshot

Though still down in calendar year 2023, the New Hope share price remains up an impressive 76% over the past 12 months.

Created with Highcharts 11.4.3New Hope PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Scott Phillips.

More on Energy Shares

Copal miner standing in front of coal.
Energy Shares

What happened to Coronado Global Resources shares on Friday?

The ASX coal miner announced new funding this week.

Read more »

Gas and oil worker working on pipeline equipment.
Energy Shares

The pros and cons of buying Woodside shares this month

Is this ASX energy share a great opportunity right now?

Read more »

A miner stands in front of an excavator at a mine site.
Energy Shares

What's happening with ASX uranium stocks amid Sprott doubling investment to $200M

ASX investors have witnessed share price gains of up to 30% for the largest uranium stocks this week.

Read more »

Workers inspecting a gas pipeline.
Energy Shares

Woodside signs deal to supply Malaysian company with gas for 15 years  

It’s been a good month for Woodside shareholders with the company’s stock gaining 17%.

Read more »

Excited couple celebrating success while looking at smartphone.
Energy Shares

This ASX 200 uranium stock is charging higher on big news

This uranium producer is delivering the goods. Let's see what it announced.

Read more »

A man looking at his laptop and thinking.
Energy Shares

What did Macquarie make of the Santos takeover offer?

Is this a good deal for shareholders? Let's find out.

Read more »

A man wearing glasses and a white t-shirt pumps his fists in the air looking excited and happy about the rising OBX share price
Energy Shares

Guess which ASX 300 mining stock is surging 11% on big news

There are a couple of reasons behind this strong gain.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Energy Shares

3 ASX uranium stocks up more than 20% in 2 days

Paladin Energy, Boss Energy, and Deep Yellow shares are among the market's fastest risers again today.

Read more »