Whitehaven Coal Posts 53% Revenue Surge, Cuts Net Debt by Half
Whitehaven Coal reported a 53% revenue increase to $5.83 billion in FY25, driven by full-year contributions from its Queensland acquisitions. Despite a cyclical price downturn, the company strengthened its balance sheet and declared a fully franked final dividend of 6 cents per share.
- 53% revenue growth to $5.83 billion in FY25
- Underlying EBITDA of $1.355 billion, slightly down due to lower coal prices
- 60% increase in coal production to 39.1 million tonnes ROM
- Completed 30% sell-down of Blackwater mine for US$1.08 billion
- Executive remuneration adjusted post-acquisition with FY26 fixed pay freeze
Strong Financial Performance Amid Market Challenges
Whitehaven Coal Limited delivered a robust financial performance for the year ended 30 June 2025, with revenue surging 53% to $5.832 billion. This growth was largely attributable to the full-year contribution from the Daunia and Blackwater metallurgical coal mines acquired in April 2024. Underlying EBITDA stood at $1.355 billion, a slight decline from the previous year, reflecting the impact of softer coal prices in the second half of FY25.
Despite the cyclical downturn in coal prices, Whitehaven’s operational execution remained strong. Run-of-mine (ROM) coal production increased by 60% to 39.1 million tonnes, supported by solid performances from both Queensland and New South Wales operations. The company’s diversified portfolio now comprises 64% metallurgical coal sales, a significant shift from 31% in FY24, underscoring its strategic repositioning.
Balance Sheet Strengthened by Strategic Asset Sale
In a landmark transaction, Whitehaven completed the sale of a 30% joint venture interest in the Blackwater coal mine to Nippon Steel Corporation and JFE Steel Corporation for an aggregate cash consideration of US$1.08 billion. This sell-down significantly bolstered the company’s balance sheet, enabling a reduction in net debt to $634 million from $1.278 billion the previous year. Available liquidity at year-end was a healthy $1.581 billion, comprising $1.206 billion in cash and $375 million in undrawn facilities.
The proceeds from the Blackwater transaction also allowed Whitehaven to meet the first deferred payment installment of US$500 million related to the Queensland acquisition, with the second installment due in April 2026. This disciplined capital management approach provides the company with financial flexibility amid ongoing market uncertainties.
Operational Highlights and Development Pipeline
Queensland operations, including Daunia and Blackwater, delivered a strong year with ROM production of 20 million tonnes and sales of 15.8 million tonnes. New South Wales operations maintained steady output, with Maules Creek and Gunnedah open-cut mines offsetting lower volumes at Narrabri due to planned longwall maintenance.
Whitehaven continues to advance key development projects such as the Vickery extension, Narrabri Stage 3 underground mine extension, Winchester South metallurgical coal mine, and the Maules Creek Continuation Project. These projects remain on schedule and budget, underpinning the company’s long-term growth strategy in a supply-constrained market.
Remuneration Reflects Expanded Scale and Market Discipline
Following the transformative acquisition of Queensland assets, the Board reviewed and increased fixed remuneration for Executive Key Management Personnel (KMP) in FY25 to reflect the expanded scope and complexity of their roles. However, acknowledging the cyclical market downturn, a freeze on fixed remuneration has been implemented for FY26 to maintain cost discipline.
The Single Incentive Plan (SIP) outcomes for FY25 rewarded executives for strong operational and safety performance, with the CEO and CFO receiving 70.3% of maximum opportunity. The company’s long-term incentive tranches also vested at 100%, driven by outstanding total shareholder return (TSR) performance and progress on growth projects.
Navigating Market and Regulatory Headwinds
Whitehaven faces ongoing challenges including coal price volatility, foreign exchange fluctuations, and increased regulatory costs such as higher NSW coal royalties and the Federal Safeguard Mechanism for emissions. The company is actively managing these risks through cost reductions, productivity improvements, and prudent capital allocation.
Looking ahead, Whitehaven expects FY26 ROM coal production between 37 and 41 million tonnes, with forecasted FOB costs of $130 to $145 per tonne. The company remains confident in the long-term demand outlook for both metallurgical and high-calorific thermal coal, supported by structural supply deficits and growth in key markets like India.
Bottom Line?
Whitehaven’s FY25 results and strategic moves position it well for resilience and growth, but market volatility and regulatory shifts warrant close investor attention.
Questions in the middle?
- How will Whitehaven manage the second deferred payment for the Queensland acquisition amid market uncertainties?
- What impact will the Federal Safeguard Mechanism have on operational costs and emissions strategies going forward?
- How might coal price volatility and foreign exchange fluctuations affect Whitehaven’s profitability in FY26 and beyond?
