New Hope Corporation net profit plunges 146%

Company News

by David Chau

New Hope Corporation (ASX:NHC) has announced its not-so-stellar full year results.  The company says it was a tough year for the Australian coal sector due to a downturn in global coal and oil prices.

The coal mining company says its net profit after tax plunged 146% to be a net loss of $53.7 million (when irregular items are factored in).

The company’s EBITDA (including the impact of non-regular items) was $6.4 million – which is a fall of 91.1% compared to FY15.

So what are these non regular items? The company says this includes the impairment of oil producing and exploration assets (totalling $19 million). In addition, there was a $36.5 million cash expense for acquiring oil assets and a 40% stake in Bengalla coal mine in the Hunter Valley, NSW.

Despite that, the company stay pay a final dividend in November – of 2 cents per share (which is down 0.5 cent over FY15).

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