And NSW-based Whitehaven Coal returned to a full-year profit in 2015-16, beating analyst forecasts after boosting production to new highs.
The company reported a net profit of $20.5 million for the year to June 30, compared with a $342.7 million net loss a year ago.
Excluding significant items (mostly impairments and write-downs), its loss in 2014-15 was $10.7 million.
The company said it expects to again boost coal output in this financial year to between 21 to 22 million tonnes, as it lifts output from its Maules Creek mine in NSW.
Production of coal increased by 30% in the year ended June 30, allowing Whitehaven to improve sales margins despite average lower selling prices over the year.
Whitehaven said buyers of its thermal coal were adding more coal-fired power station capacity.
After five years of declining prices, coal markets appear to have found a bottom in the current quarter, it said yesterday,with thermal coal prices rising in Asian markets in recent months. The shares jumped 3.9% to $2.12.
Despite the return to profit, CEO Paul Flynn ruled out dividend payouts in the near term, saying the company is focusing on consolidating its performance and reducing debt.
“After that, it might be appropriate for the board to consider capital management initiatives, including dividends," he said.
