WHC +6.25% reported a mixed FY24 result, with a NPAT miss (-4%) but a DPS 30% beat. However, Blackwater’s 30% divestment was the standout, the $1.bn will help to shore up WHC’s balance sheet.
- Revenue of A$3.8b was 2% lower than consensus, and down 37% yoy, although largely pre-reported.
- Ebitda was a 3% beat on lower costs, whilst adjusted NPAT was a 4% miss, on 5% higher depreciation and 35% higher net finance costs vs consensus.
- WHC announced a fully-franked final dividend of 13c, a >50% beat on consensus. This represented a 28% payout ratio on 2HFY24, within the target range.
- FY25 guidance was weak on sales (-12%) and costs (+19%) vs. consensus.
WHC’s FY24 result was solid, with a final dividend beat. FY25 looks harder, as previously flagged, but the Blackwater 30% divestment was enough to make MM and the market happy. More on WHC and the coal sector in tomorrow’s report – MM owns WHC in our Active Growth Portfolio.
MM remains long and bullish on WHC
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