Profit jump for New Hope Corporation stock surges

New Hope Corporation Limited announced a strong result backed by improved production while operating costs declined which supported investor confidence in the business.

New Hope Corporation Limited (ASX: NHC) 

on 18 May 2026 announced a strong quarterly result for the period ended 30 April 2026 as production improved and coal sales increased while profitability strengthened despite volatility across global commodity markets.

The company has a market capitalisation of $4.45 billion at the time of writing and is one of the strongest coal producers on the ASX because of its low cost operations along with a strong balance sheet and disciplined capital management strategy. The stock’s current annual fully franked dividend yield is 4.74%.

Impressive operational performance

New Hope reported a solid operational quarter as Group ROM coal production rose 5% quarter-on-quarter to 4.3 million tonnes. Saleable coal production also increased 8.7% to 3.0 million tonnes while coal sales climbed 10.4% to 3.2 million tonnes as mining conditions improved. Underlying EBITDA increased 21.7% from the previous quarter to $130.1 million which reflected the operational leverage within the business as production volumes grew.

The company’s flagship Bengalla Mine in New South Wales delivered strong operational performance during the quarter. ROM coal production at Bengalla jumped 16.3% quarter-on-quarter to 2.6 million tonnes while coal sales increased 14.1% to 2.2 million tonnes. Management stated that favourable mining conditions together with the return of normal mining sequences after earlier weather disruptions supported the strong quarterly outcome.

The New Acland Mine in Queensland also continued to progress during the quarter. Coal sales from the operation increased 2.6% quarter-on-quarter to 957,000 tonnes while year-to-date coal sales surged 54.7% compared with the prior corresponding period. 

Coal markets were supportive

Coal market conditions improved during the quarter which supported realised pricing across the business. The gC NEWC 6000 benchmark coal price averaged US$127.6 per tonne during the quarter which represented a 16.5% increase from the previous quarter. The API-5 benchmark also rose 11.1% quarter-on-quarter to US$86.5 per tonne. New Hope achieved an average realised sales price of $140.7 per tonne for the quarter which was slightly above the previous quarter despite a stronger Australian dollar.

Management stated that geopolitical tensions in the Middle East continued to create uncertainty across global energy markets which supported coal demand as several countries prioritised energy security amid concerns over LNG supply disruptions. Management said that most production for the next three months has already been sold through the forward sales book.

Strong Financial Position

The company ended the quarter with available cash of $571.6 million which included $277.1 million in cash and cash equivalents together with $294.5 million in fixed income investments. New Hope also refinanced its debt profile successfully through the issue of $300 million of new senior unsecured convertible notes due 2032. 

The company returned capital to shareholders during the quarter through the payment of a fully franked interim dividend of 10 cents per share. The on-market share buyback program of up to $100 million is active as management continues to assess opportunities to maximise shareholder value.

The company is well positioned to benefit from resilient global coal demand together with disciplined cost management and a strong financial position. Although coal markets can remain cyclical and volatile, New Hope’s low-cost operations and production profile are expected to support future shareholder value creation.

(Source: Company Announcements)