Yancoal Australia's HY profit slumps 57% coal prices slide on weak China demand
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Aug 19 (Reuters) -Yancoal Australia YAL.AX reported a slump in first-half profit on Monday, and did not declare an interim dividend, hurt by a slide in prices due to lower demand, especially from the key China market.
The company's profit after tax tumbled 57% to A$420 million ($281 million) in the month-month period, from A$973 million in the year-ago period.
Yancoal said run-of-mine (ROM) coal production rose 7% to 27.9 million tonnes in the period, but that was more than offset by a 37% slide in average realised prices to A$176 per tonne.
The company said the high-ash thermal coal market weakened slightly towards the end of the period as higher rainfall in China boosted hydropower generation, curbing demand.
It said sales of metallurgical, or steel-making, coal were also hurt by lower demand from China, Yancoal's biggest revenue generator.
The coal miner did not declare an interim dividend for the period, compared with 37 Australian cents apiece a year ago.
Yancoal said it expects production volumes to increase in the second half of the year, boosted by the timing of mining activities, from mining to ship loading.
As such, it maintained its 2024 attributable saleable production forecast of 35 million tonnes to 39 million tonnes.
Yancoal's shares closed down more than 1% ahead of the results.
($1 = 1.4950 Australian dollars)
Reporting by Rajasik Mukherjee in Bengaluru; Editing by Savio D'Souza and Devika Syamnath
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