Whitehaven Coal says its heading for profit, shares soar

Getty/Corey Davis

Whitehaven Coal says it expects to be profitable in the first half of the financial year with EBITDA to double to between $100 million and $105 million.

A short time ago, its shares were up 17% to $0.71.

The company says it expects to exceed the $13 per tonne margin reported for the last financial year despite soft prices for coal.

This strong cash flow will enable Whitehaven to reduce net debt in 2016.

CEO Paul Flynn says customers in Japan, Korea and Taiwan have emphasised strong and growing demand for the company’s Gunnedah Basin coal.

The company reported a full year net loss after tax of $342.7 million. In 2015, the company increased production by 17% to 15.8 million tonnes.

Whitehaven reports half year financial results on February 5.

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