Whitehaven Coal posted a loss for the full year due to sizable asset impairment expenses.
The annual net loss after tax stood at AUD543.9 million (USD395.63 million), contrasting with a profit of AUD30 million (USD21.76 million) a year earlier. Annual revenue dipped by 9.6% to AUD1.56 billion (USD1.1 billion).
The company had to pay a total of AUD650 million (USD472.8 million) for asset impairments which comprised AUD548.7 million (USD398.05 million) for Narrabri mine, AUD90.2 million (USD65.4 million) for Werris Creek, and an AUD11.1 million (USD8.05 million) charge for rail intangible assets no longer expected to be utilized.
Whitehaven had also changed the plan for its Narrabri mine in New South Wales due to geological challenges which could affect the quality of the coal. The company has to shorten the expected mine life. The Narrabri North mine’s marketable reserves are slashed by 27.7% to 70.7 million tonnes while at Narrabri South it was cut by 15.8% to 96 million tonnes.
Looking forward, Whitehaven predicted a stronger performance in the coming quarters on the back of the recovering economy as the coronavirus-related movement restrictions ease, which it expects to underpin strong prices.
