New Hope FY profit falls

Investment impairments weigh heavily, miner says it is well placed to withstand coal market troubles.

New Hope Corporation (NHC) says it is well placed to withstand current coal market conditions after posting a fall in profit, largely due to investment writedowns.

For the 12 months to June 30, the group’s net profit after tax was $74.13 million, a 55% fall from the previous year’s $167.13 million.

Impairments on the carrying value of New Hope’s investments in Dart Energy (DTE), Westside Corporation (WCL) and the Quantex group of companies hit the result to the tune of $51.4 million.

Revenue for the year slipped to $656.4 million, from $767.7 million in the previous 12 months.

The group will pay a final dividend of 5 cents per share, fully franked, and a fully-franked special dividend of 5 cents per share, on November 5, bringing total shareholder payouts for the year to 16 cents per share.