Whitehaven (ASX:WHC) share price rebounds 5% on earnings

The coal company’s shares finished the day ahead after an early slide on the back of its FY21 results.
The post Whitehaven (ASX:WHC) share price rebounds 5% on earnings appeared first on The Motley Fool Australia. –

The Whitehaven Coal Ltd (ASX: WHC) share price has closed 4.95% higher on Thursday having pared back early losses from its results for the year ended 30 June 2021 (FY21).

Whitehaven share price rebounds 5% on earnings result

In case you missed it, here are some of the key takeaways from this morning’s full-year result:

Revenue down 9.3% on the prior corresponding period (pcp) to $1.56 billion

Earnings before interest, tax, depreciation and amortisation (EBITDA) down 33% on pcp to $204.5 million
Operating cash flows down 5% on pcp to $138.8 million
Net loss after tax before significant items of $87.3 million, after $30 million net profit after tax (NPAT)

The Whitehaven share price initially crashed following the softer earnings result before slingshotting higher on Thursday afternoon. Shares in the Aussie coal miner closed the day up 4.95% in a stunning turnaround.

Investors may be wondering what caused the lower revenues and earnings figures. The obvious place to start with any commodity-based company is with commodity prices themselves.

Whitehaven’s EBITDA margin slipped from $21 per tonne in FY20 to just $14 per tonne in FY21. That was largely as a result of the company’s average realised price falling 8.7% to $95 per tonne.

The Aussie coal miner reported 14.4 million tonnes in sales during the year which was broadly in line with FY20 numbers but fell short of what the market was expecting.

Despite a weak result this morning, it’s actually been a strong year for shareholders. The Whitehaven share price has rocketed 150% higher in the past 12 months and 41% in 2021 alone.

Whitehaven CEO Paul Flynn reflected on the FY21 result:

FY21 was very much a year of highs and lows both operationally and in terms of factors outside our control.

Investors saw those highs and lows mirrored in the Whitehaven share price move on Thursday, recovering from a 3.4% drop at the open to finish the day up 4.95% at $2.33 per share.

That’s just shy of the company’s high of $2.44 per share and gives the company a market capitalisation of $2.4 billion.

The post Whitehaven (ASX:WHC) share price rebounds 5% on earnings appeared first on The Motley Fool Australia.

Should you invest $1,000 in Whitehaven Coal right now?

Before you consider Whitehaven Coal, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Whitehaven Coal wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Here are the top 10 ASX 200 shares on Thursday

Whitehaven (ASX:WHC) share price sinks on falling FY21 revenues
Here are the top 10 ASX 200 shares on Monday

Whitehaven (ASX:WHC) share price lifts 6% ahead of earnings this week
How did the Whitehaven (ASX:WHC) share price respond last earnings season?

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!