Why did Whitehaven (WHC) shares fall despite a big profit
WHC -5.08%: A strong year for the coal producer with underlying revenue of $6,06bn which was broadly inline with consensus, EBITDA of $3,99bn (v consensus $4bn) & an underlying net profit after tax (NPAT) of $2.7bn which was inline with expectations. The final dividend of 42cps fully franked was ahead of consensus, chalking up a FY dividend of 74cps. While these metrics look solid, and their reported net cash position of $2.65bn is a great foundation, they have temporarily suspended the buy-back as they look at their capital allocation framework, which implies they are readying themselves to buy something, with BHP’s coal assets the most obvious candidate.
- Solid result, growth rather than capital returns saw sellers emerge today.
MM remains bullish WHC
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